Cheese Market Analysis

ID: MRFR/FnB/1644-CR

131 Pages

Snehal Singh

February 2021

Cheese Market Research Report: By Type (Cheddar, Mozzarella, Cream Cheese, Ricotta), By Form (Block, Sliced, Grated, Spreadable), By Source (Cow Milk, Goat Milk, Sheep Milk, Plant-Based), By Application (Food Industry, Food Service, Household) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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Market Analysis

In-depth Analysis of Cheese Market Industry Landscape

The cheese market is shaped by a dynamic interplay of various market dynamics, reflecting consumer preferences, economic factors, technological advancements, and industry trends. One of the key dynamics driving the cheese market is the ever-evolving consumer taste and preferences. As consumers seek diverse and innovative flavors, textures, and types of cheese, manufacturers respond by introducing new varieties and formulations. This dynamism in consumer preferences contributes to a continuously expanding product portfolio and drives competition within the market.

Economic factors also play a significant role in the market dynamics of the cheese industry. Fluctuations in the prices of key ingredients such as milk directly impact production costs. Additionally, consumer purchasing power influences the demand for premium or specialty cheeses. Economic stability and disposable income levels, therefore, become pivotal considerations for industry stakeholders in understanding market dynamics. The establishment of a market for low-fat cheese, coupled with ongoing innovations to improve the taste and quality of products, is opening up fresh avenues in the cheese industry. Key players have the potential to leverage these opportunities to augment their revenue in the cheese market. The globalization of food preferences is another influential dynamic in the cheese market. With a growing interest in international cuisines, cheese, a versatile ingredient, has found its way into diverse culinary traditions worldwide. The adoption of Western dietary patterns in emerging markets and the incorporation of cheese into non-traditional dishes contribute to the globalization trend, expanding the market's reach and opportunities for producers.

Technological advancements significantly influence the dynamics of the cheese market. Innovations in cheese production processes, packaging technologies, and quality control methods contribute to enhanced efficiency, improved product quality, and extended shelf life. Technology also plays a role in addressing sustainability concerns by optimizing production processes and reducing environmental impact. Keeping abreast of technological developments is essential for industry players to stay competitive and meet evolving consumer expectations.

Health and wellness considerations form a crucial dynamic in the cheese market. As consumers increasingly prioritize healthier food choices, there is a growing demand for cheese with reduced fat, salt, and additives. Producers respond by incorporating health-centric claims into product labeling, introducing low-fat or organic options, and exploring functional additives. This shift towards healthier alternatives reflects the broader trend of wellness-conscious consumer behavior.

Regulatory factors contribute to the market dynamics as well. Stringent regulations related to food safety, labeling, and quality standards impact the manufacturing, distribution, and marketing of cheese products. Adherence to these regulations is essential for maintaining consumer trust and ensuring the integrity of the cheese market. Changes in regulatory frameworks may prompt adjustments in production practices and business strategies to comply with evolving standards.

Distribution channels and retail dynamics also shape the cheese market. The rise of e-commerce and the growing popularity of online grocery shopping have altered consumer purchasing behaviors. Manufacturers and retailers must adapt their distribution strategies to meet the demands of an increasingly digital market. Efficient supply chain management, strategic partnerships with retailers, and a strong online presence become pivotal elements in navigating this evolving distribution landscape.

Environmental sustainability is an emerging dynamic in the cheese market. With heightened awareness of climate change and environmental impact, consumers are gravitating towards eco-friendly and sustainable products. This dynamic is prompting cheese producers to explore sustainable sourcing practices, reduce carbon footprints, and adopt environmentally conscious packaging solutions to align with consumer values and industry sustainability goals.

Market Highlights

Author

Snehal Singh

Assistant Manager - Research

High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. By implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in Packaging, Construction, and Equipment domains. She handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.

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FAQs

What is the current valuation of the Cheese Market as of 2024?

The Cheese Market was valued at 119.79 USD Billion in 2024.

What is the projected market valuation for the Cheese Market in 2035?

The Cheese Market is projected to reach a valuation of 160.07 USD Billion by 2035.

What is the expected CAGR for the Cheese Market during the forecast period 2025 - 2035?

The expected CAGR for the Cheese Market during the forecast period 2025 - 2035 is 2.67%.

Which cheese type segment is expected to show the highest growth in the coming years?

The Cheddar segment, valued at 40.0 USD Billion in 2024, is anticipated to grow to 54.0 USD Billion by 2035.

How does the market for spreadable cheese compare to other forms?

The spreadable cheese segment, valued at 44.79 USD Billion in 2024, is projected to grow to 55.07 USD Billion by 2035.

What are the primary sources of cheese in the market?

Cow milk cheese dominates the market, with a valuation of 80.0 USD Billion in 2024, expected to rise to 108.0 USD Billion by 2035.

Which application segment of cheese is expected to grow the most?

The household application segment, valued at 49.79 USD Billion in 2024, is likely to increase to 65.07 USD Billion by 2035.

Who are the key players in the Cheese Market?

Key players in the Cheese Market include Lactalis, Dairy Farmers of America, Fonterra, Nestle, and Saputo.

What is the projected growth for the mozzarella cheese segment?

The mozzarella segment, valued at 30.0 USD Billion in 2024, is expected to grow to 40.0 USD Billion by 2035.

How does the market for plant-based cheese compare to traditional sources?

The plant-based cheese segment, valued at 20.79 USD Billion in 2024, is projected to grow to 26.07 USD Billion by 2035.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per MRFR analysis, the Cheese Market Size was estimated at 119.79 USD Billion in 2024. The Cheese industry is projected to grow from 122.99 USD Billion in 2025 to 160.07 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 2.67 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Cheese Market is experiencing a dynamic shift towards health-conscious and gourmet options, driven by evolving consumer preferences.

Health-conscious choices are increasingly influencing consumer purchasing decisions in the Cheese Market.
Gourmet and artisanal cheese varieties are gaining traction, particularly in North America, reflecting a desire for premium products.
The Asia-Pacific region is witnessing rapid growth in mozzarella cheese, driven by its versatility and popularity in various cuisines.
Sustainability and ethical sourcing are emerging as key market drivers, alongside the rising demand for cheddar cheese in block form.

Market Size & Forecast

2024 Market Size	119.79 (USD Billion)
2035 Market Size	160.07 (USD Billion)
CAGR (2025 - 2035)	2.67%
Largest Regional Market Share in 2024	North America

Major Players

Lactalis (FR), Dairy Farmers of America (US), Fonterra (NZ), Nestle (CH), Saputo (CA), Arla Foods (DK), Kraft Heinz (US), FrieslandCampina (NL), Bel Group (FR)

Market Trends

The Cheese Market is currently experiencing a dynamic evolution, driven by shifting consumer preferences and an increasing demand for diverse cheese varieties. As health consciousness rises, consumers are gravitating towards products that offer nutritional benefits, such as low-fat and organic options. This trend is further complemented by the growing popularity of plant-based alternatives, which cater to a segment of the population seeking dairy-free choices. Additionally, the Cheese Market is witnessing a surge in gourmet and artisanal cheeses, reflecting a desire for unique flavors and high-quality ingredients. This inclination towards premium products suggests that consumers are willing to invest in specialty items that enhance their culinary experiences. Moreover, the Cheese Market is influenced by globalization, which facilitates the exchange of cheese varieties across borders. This phenomenon allows consumers to explore international flavors, thereby broadening their palates. The rise of online retail platforms has also transformed the way cheese is marketed and sold, providing consumers with greater access to a wide range of products. As the Cheese Market continues to adapt to these trends, it appears poised for sustained growth, with opportunities for innovation and expansion in various segments. The interplay of health trends, gourmet preferences, and global influences indicates a vibrant future for this sector, as it seeks to meet the evolving demands of consumers.

Health-Conscious Choices

Consumers are increasingly prioritizing health in their dietary selections, leading to a rise in demand for low-fat, organic, and functional cheese products. This trend reflects a broader movement towards healthier eating habits, as individuals seek options that align with their wellness goals.

Gourmet and Artisanal Cheese

There is a notable shift towards gourmet and artisanal cheese, as consumers show a preference for unique flavors and high-quality ingredients. This trend highlights a growing appreciation for craftsmanship and the culinary experience associated with specialty cheeses.

Global Flavor Exploration

The Cheese Market is benefiting from globalization, which allows consumers to access a diverse array of international cheese varieties. This trend fosters a culture of flavor exploration, as individuals seek to expand their culinary horizons through unique and exotic cheese options.

Cheese Market Market Drivers

Health-Conscious Choices

The Cheese Market is experiencing a notable shift towards health-conscious choices among consumers. As individuals become increasingly aware of dietary impacts, there is a growing demand for low-fat, reduced-sodium, and organic cheese options. This trend is supported by data indicating that the market for organic cheese has expanded significantly, with sales projected to reach substantial figures in the coming years. Consumers are actively seeking products that align with their health goals, which has prompted manufacturers to innovate and diversify their offerings. The Cheese Market is thus adapting to these preferences, leading to the introduction of functional cheeses enriched with probiotics and other health benefits. This evolution not only caters to the existing consumer base but also attracts new customers who prioritize health in their dietary choices.

Global Flavor Exploration

The Cheese Market is currently influenced by a trend of global flavor exploration. Consumers are increasingly adventurous in their culinary choices, seeking out cheeses that reflect diverse cultural influences. This trend is evident in the rising popularity of international cheese varieties, such as French Brie, Italian Parmigiano-Reggiano, and Spanish Manchego. Market analysis indicates that the demand for imported cheeses has grown, as consumers are eager to experience authentic flavors from different regions. This exploration of The Cheese Industry but also encourages cross-cultural culinary experiences. Retailers are responding by curating international cheese selections, thereby enhancing consumer access to a wider array of flavors. This trend suggests a potential for continued growth in the market as consumers remain open to experimenting with new and exotic cheese varieties.

Gourmet and Artisanal Cheese

The Cheese Market is witnessing a surge in the popularity of gourmet and artisanal cheeses. This trend appears to be driven by a growing appreciation for unique flavors and high-quality ingredients among consumers. Artisanal cheese producers are increasingly recognized for their craftsmanship, often using traditional methods that enhance the flavor profiles of their products. Market data suggests that sales of gourmet cheeses have seen a significant increase, reflecting a shift in consumer preferences towards premium products. This segment of the Cheese Market is characterized by a diverse range of offerings, including specialty cheeses infused with herbs, spices, and even local ingredients. As consumers seek out distinctive culinary experiences, the demand for gourmet cheese continues to rise, prompting retailers to expand their selections and promote these unique products.

Sustainability and Ethical Sourcing

The Cheese Market is increasingly shaped by consumer demand for sustainability and ethical sourcing practices. As awareness of environmental issues grows, consumers are more inclined to support brands that prioritize sustainable production methods. This shift is reflected in the rising popularity of cheeses produced from grass-fed cows and those that adhere to organic farming practices. Market data indicates that products labeled as sustainable are experiencing higher sales, suggesting that consumers are willing to pay a premium for ethically sourced cheese. This trend is prompting manufacturers within the Cheese Market to adopt more transparent supply chains and environmentally friendly practices. As sustainability becomes a key purchasing factor, the industry is likely to see further innovations aimed at reducing environmental impact while meeting consumer expectations.

Technological Advancements in Production

The Cheese Market is benefiting from technological advancements in production processes. Innovations such as automation and improved fermentation techniques are enhancing efficiency and product quality. These advancements allow producers to scale operations while maintaining consistency in flavor and texture. Market data indicates that the adoption of technology in cheese production is leading to increased output and reduced costs, which can ultimately benefit consumers through more competitive pricing. Additionally, technology is facilitating the development of new cheese varieties and flavors, catering to evolving consumer preferences. As the Cheese Market continues to embrace these advancements, it is likely to experience growth driven by both improved production capabilities and the introduction of innovative products that meet diverse consumer demands.

Market Segment Insights

By Type: Cheddar (Largest) vs. Mozzarella (Fastest-Growing)

The Cheese Market is notably characterized by its diverse types, with Cheddar leading the segment due to its widespread popularity and preference across various cuisines. It has established a solid market share owing to its versatility and prolonged shelf life. In contrast, Mozzarella, although lagging behind in market share, is witnessing remarkable growth driven by the rising demand for pizza and Italian dishes, particularly among younger consumers. Consumers increasingly favor fresh and artisanal varieties, further enhancing Mozzarella's appeal. As health trends continue to impact consumer choices, the Cheese Market is experiencing shifts in preferences towards lower-fat and organic options. Cheddar remains a staple due to its rich flavor and food pairing capabilities, appealing to both gourmet and everyday cooking. Meanwhile, the rapid growth of Mozzarella can be attributed to innovations such as plant-based alternatives and increased usage in ready-to-eat meals, thus catering to the evolving consumer landscape.

Cheddar (Dominant) vs. Ricotta (Emerging)

Cheddar is the dominant type in the Cheese Market, known for its robust flavor and versatility, making it a favorite in both cooking and snacking applications. Its production process contributes to a range of flavor profiles and aging options, enhancing its market appeal. In contrast, Ricotta represents a growing segment, particularly in the realm of health-conscious consumers looking for softer, creamy cheese options that are also lower in fat. It is increasingly favored in culinary applications that emphasize freshness and lightness, such as in desserts and Italian dishes. The rising trend of indulgent yet health-focused eating habits positions Ricotta as an emerging favorite among consumers who are exploring diverse cheese options.

By Form: Block (Largest) vs. Grated (Fastest-Growing)

In the Cheese Market, the 'Form' segment displays a diverse landscape, with block cheese leading in market share. Block cheese is favored for its versatility, long shelf life, and economic value, making it the preferred choice for both consumers and food service providers. Grated cheese follows closely, gaining recognition for its convenience in preparation and cooking, appealing to busy households and food businesses alike. Grated cheese's rapid growth is driven by changing consumer lifestyles that emphasize quick meal preparation and innovation in cheese products. Additionally, the rise in home cooking and the popularity of cheese-based dishes have significantly boosted the demand for grated cheese. Meanwhile, other forms like sliced and spreadable cheese are carving out niche markets, focusing on unique flavors and textures to attract diverse customer preferences.

Block (Dominant) vs. Grated (Emerging)

Block cheese holds a dominant position in the Cheese Market due to its extensive application in both households and commercial settings. Its ability to be easily cut or melted allows for a wide range of culinary uses, aligning with traditional and modern cooking methods. Consumers appreciate its freshness and quality, often choosing block cheese for recipes requiring customized portions. Conversely, grated cheese is emerging as a popular choice, particularly in ready-to-use formats that meet the demands of convenience. It appeals to both consumers seeking quick meal solutions and culinary professionals looking to enhance dishes with minimal prep work. The trend towards grating cheese on-demand has driven its growth, positioning it as a staple in many kitchens.

By Source: Cow Milk (Largest) vs. Plant-Based (Fastest-Growing)

The Cheese Market is significantly dominated by cow milk, which holds the largest market share among the sources of cheese. Cow milk is widely recognized for its versatility and richness, making it the preferred choice for a wide range of cheese varieties including Cheddar, mozzarella, and gouda. On the other hand, plant-based cheese, driven by the rising vegetarian and vegan population, is rapidly gaining traction, showing impressive growth in consumer preference and sales.

Cheese Source: Cow Milk (Dominant) vs. Plant-Based (Emerging)

Cow milk remains the dominant source in the cheese sector, valued for its rich flavor and texture, and the expansive variety of cheeses it produces. It benefits from established farming practices and strong supply chains, making cow milk cheese readily available worldwide. Conversely, the emerging plant-based cheese segment is characterized by innovation and adaptability, catering to the growing demand for dairy alternatives. With advancements in food technology, plant-based cheeses are becoming more palatable and versatile, appealing to health-conscious consumers and those with dietary restrictions. This shift indicates a significant trend towards sustainability and inclusivity in food choices.

By Application: Food Industry (Largest) vs. Food Service (Fastest-Growing)

In the Cheese Market, the application segment is primarily divided into Food Industry, Food Service, and Household. Among these, the Food Industry holds the largest market share, significantly driven by the high demand for processed cheese in various food production processes. The Food Service sector demonstrates robust growth rates, benefiting from the rising trend of dining out and increased investment in hospitality services, thus creating a strong demand for various cheese products.

Food Service: Dynamic Growth vs. Household: Steady Demand

In the Cheese Market, the Food Service segment is recognized for its dynamic growth, fueled by trends in gastronomic diversity and the burgeoning popularity of gourmet dining. This sector is defined by quick-service restaurants and catering services that prioritize high-quality cheese offerings to attract discerning customers. Conversely, the Household segment represents a steady demand, primarily focusing on everyday cheese consumption for home-cooked meals. While the Household segment provides a consistent volume for cheese sales, the Food Service segment is rapidly evolving, adapting to consumer preferences for unique cheese flavors and varieties, thus promising significant opportunities for suppliers.

Get more detailed insights about Cheese Market Research Report - Forecast to 2035

Regional Insights

The Cheese Market is poised for steady growth, with a projected valuation of 119.79 USD Billion in 2024, reflecting a diverse landscape across various regions. North America stands out as a significant market, valued at 40.0 USD Billion in 2024 and expected to rise to 54.5 USD Billion by 2035, driven by high cheese consumption and a robust dairy industry.

Europe follows closely, with a current valuation of 35.0 USD Billion, projected to grow to 48.0 USD Billion, highlighting its strong cheese traditions and consumer preferences for various cheese types.On the other hand, South America, valued at 10.0 USD Billion, and Asia Pacific, at 25.0 USD Billion, show potential for growth with increasing demand and urbanization in these regions. The Middle East and Africa segment, although smaller at 9.79 USD Billion, reflects emerging markets with growing cheese consumption patterns.

The Cheese Market segmentation underscores a landscape where North America and Europe dominate, owing to their established markets, while Asia Pacific and South America present new opportunities for expansion as consumer habits evolve.Overall, the regional insights highlight key growth drivers alongside challenges inherent to each market, paving the way for continued development in the Cheese industry.

Cheese Market Regional Insights

Source Primary Research, Secondary Research, Market Research Future Database and Analyst Review

Key Players and Competitive Insights

The competitive insights of the Cheese Market reveal a dynamic landscape characterized by constant innovation, diverse offerings, and the emergence of new consumer trends. With the increasing demand for cheese varieties across regions, companies are adapting their strategies to maintain market share while catering to changing tastes and preferences. Factors such as health consciousness, gourmet food trends, and the rise of plant-based alternatives are influencing product development and marketing strategies. Companies in this sector are focusing on enhancing product quality, expanding distribution channels, and leveraging e-commerce platforms to reach a broader audience.

Furthermore, sustainability practices and technological advancements in production are becoming pivotal in defining the competitive edge among players in the market.Emmi stands out in the Cheese Market due to its strong focus on quality and premium products. The company has carved out a significant niche for itself by offering a range of artisanal and specialty cheeses that appeal to discerning consumers. Emmi is recognized for its commitment to traditional cheese-making techniques while also embracing innovation, which in turn allows it to launch new varieties and flavors that resonate with current culinary trends.

The organization boasts a well-established presence in various international markets, facilitating its ability to respond swiftly to consumer demand across different regions. Additionally, Emmi's strategic partnerships and collaborations enhance its market reach and operational efficiencies, consolidating its position as a key player in the competitive cheese landscape.Murray Goulburn holds a prominent position within the Cheese Market, having built a reputation for high-quality dairy products and a strong portfolio of cheese offerings. Its product lineup includes a diverse range of cheese types aimed at both retail and food service sectors, reflecting the changing tastes of consumers worldwide.

The company has been proactive in its merger and acquisition strategy, focusing on expanding its capabilities and accessing new markets to drive growth. Murray Goulburn's strength lies in its efficient supply chain and strong relationships with dairy farmers, ensuring consistent access to high-quality raw materials. Additionally, its investment in innovation and sustainability initiatives has enabled it to remain competitive, meeting the evolving demands while also addressing environmental concerns, which are increasingly important to consumers ly. The company's commitment to quality, along with a diverse product range, positions it effectively in the Cheese Market, making it a formidable competitor.

Key Companies in the Cheese Market market include

Industry Developments

Recent developments in the Cheese Market have been notable, particularly with significant growth observed across various segments. Companies like Emmi and Lactalis have reported increased production capacity to meet rising consumer demand, emphasizing the popularity of specialty cheeses. In June 2023, Unilever announced its strategic plans to expand its cheese portfolio, particularly in emerging markets, signaling a robust growth strategy. Additionally, Arla Foods has experienced an upward shift in sales attributed to enhanced nutritional value in its cheese products.

In terms of mergers, Kraft Heinz announced its acquisition of a smaller cheese manufacturer in May 2023, aimed at expanding its product range and reaching new customers. FrieslandCampina has also been active, focusing on collaborations that enhance sustainable cheese production methods. Notably, the last two to three years have seen an increased interest in plant-based cheese alternatives, reflecting consumer trends towards healthier and more sustainable food choices. That shift is influencing major companies like Danone and Saputo, who are investing in Research and Development to innovate within this growing niche.

The Cheese Market is projected to maintain its upward trajectory, influenced by evolving consumer preferences and strategic company initiatives.

Future Outlook

Cheese Market Future Outlook

The Cheese Market is projected to grow at a 2.67% CAGR from 2024 to 2035, driven by increasing consumer demand for diverse cheese varieties and health-conscious products.

New opportunities lie in:

Expansion of plant-based cheese alternatives in retail channels.
Development of premium artisanal cheese lines targeting gourmet markets.
Implementation of direct-to-consumer subscription models for specialty cheeses.

By 2035, the Cheese Market is expected to exhibit robust growth, reflecting evolving consumer preferences and innovative product offerings.

Market Segmentation

Cheese Market Form Outlook

Block
Sliced
Grated
Spreadable

Cheese Market Type Outlook

Cheddar
Mozzarella
Cream Cheese
Ricotta

Cheese Market Source Outlook

Cow Milk
Goat Milk
Sheep Milk
Plant-Based

Cheese Market Application Outlook

Food Industry
Food Service
Household

Report Scope

MARKET SIZE 2024	119.79(USD Billion)
MARKET SIZE 2025	122.99(USD Billion)
MARKET SIZE 2035	160.07(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	2.67% (2024 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Market analysis in progress
Segments Covered	Market segmentation analysis in progress
Key Market Opportunities	Growing demand for plant-based cheese alternatives presents a significant opportunity in the Cheese Market.
Key Market Dynamics	Rising consumer preference for artisanal cheeses drives innovation and competition among producers in the cheese market.
Countries Covered	North America, Europe, APAC, South America, MEA