India’s paneer market is shifting fast toward branded products as states crack down on “analogue” paneer made with vegetable fat.

At least eight states have banned the imitation products, and the FSSAI is preparing nationwide rules restricting the sale of analogues as paneer. Consumers are abandoning cheaper lookalikes for trusted branded dairy.

Mother Dairy managing director Jayatheertha Chary said demand for its packaged paneer is growing 60-70 percent year-on-year this quarter, nearly double the previous quarter’s pace. The company has doubled its paneer capacity over the last two years.

Amul chief Jayen Mehta said the cooperative leads the branded segment with a 30-35 percent share, producing paneer at 35 plants across the country. Paras Dairy’s plants are running at full capacity, making 14-15 tonnes a day against 7-8 tonnes earlier.

India’s paneer market is estimated at ₹1 lakh crore and growing 15-18 percent a year. Organised brands hold just 10 percent of it today, so the shift from loose and fake paneer to branded packs has a long way to run.