Cheese Market - Global Industry Research Analysis

Cheese Market Insights

According to Market Research Store, the global cheese market size was valued at around USD 168.24 billion in 2023 and is estimated to reach USD 256.55 billion by 2032, to register a CAGR of approximately 4.8% in terms of revenue during the forecast period 2024-2032.

The cheese report provides a comprehensive analysis of the market, including its size, share, growth trends, revenue details, and other crucial information regarding the target market. It also covers the drivers, restraints, opportunities, and challenges till 2032.

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Global Cheese Market: Overview

Cheese is a dairy product made by coagulating milk proteins, primarily casein, through the action of rennet or acid, followed by curdling, draining, and aging processes. It is produced from the milk of cows, goats, sheep, or buffalo and comes in a vast array of types, textures, and flavors depending on the milk source, production method, and duration of maturation. Popular cheese varieties include cheddar, mozzarella, parmesan, gouda, brie, and blue cheese, each offering unique culinary and nutritional qualities. Cheese is rich in calcium, protein, and essential fatty acids, making it a staple food in many global cuisines.

The growth of the cheese market is driven by rising global consumption of dairy-based foods, increased popularity of fast food and ready-to-eat meals, and expanding culinary diversity across cultures. Urbanization and higher disposable incomes are also contributing to the demand for processed and specialty cheeses in both retail and foodservice sectors.

Key Highlights

• The cheese market is anticipated to grow at a CAGR of 4.8% during the forecast period.
• The global cheese market was estimated to be worth approximately USD 168.24 billion in 2023 and is projected to reach a value of USD 256.55 billion by 2032.
• The growth of the cheese market is being driven by rising global consumption of dairy-based products, changing dietary patterns, and the increasing popularity of convenience foods and ready-to-eat meals.
• Based on the product, the cheddar segment is growing at a high rate and is projected to dominate the market.
• On the basis of source, the animal-based segment is projected to swipe the largest market share.
• In terms of type, the natural segment is expected to dominate the market.
• Based on the distribution channel, the b2c/retail segment is expected to dominate the market.
• By region, North America is expected to dominate the global market during the forecast period.

Cheese Market: Dynamics

Key Growth Drivers:

• Increasing Urbanization and Westernization of Diets: Rapid urbanization globally, especially in emerging economies, leads to a greater exposure to and adoption of Western food cultures. Cheese, being a staple in many Western cuisines (e.g., pizzas, burgers, pasta, sandwiches), experiences a surge in demand as these dietary patterns become more prevalent.
• Rising Disposable Incomes and Changing Lifestyles: Growing disposable incomes, particularly in developing countries, allow consumers to spend more on premium and specialty food products, including various types of cheese. Busy lifestyles also drive demand for convenient and ready-to-eat cheese products like shredded, sliced, and snack cheeses.
• Expanding Foodservice Sector and Quick Service Restaurants (QSRs): The booming foodservice industry, including cafes, restaurants, hotels, and a proliferation of Quick Service Restaurants (QSRs), heavily relies on cheese as a key ingredient in their menu offerings. This strong B2B demand significantly contributes to market growth.

Restraints:

• Fluctuating Raw Material (Milk) Prices: The primary raw material for cheese production is milk. Variations in milk supply due to seasonal changes, feed costs, disease outbreaks in livestock, and climate-related challenges can lead to unpredictable pricing and supply shortages. This directly impacts the production costs for cheese manufacturers, affecting profit margins and potentially leading to higher retail prices.
• Health Concerns Related to High Fat and Sodium Content: Despite nutritional benefits, traditional cheese often contains high levels of saturated fat and sodium. Growing consumer health consciousness about the link between these components and conditions like cardiovascular disease, obesity, and hypertension can deter consumption, particularly among health-focused demographics.
• Lactose Intolerance and Dairy Allergies: A significant portion of the global population is lactose intolerant or has dairy allergies. This widespread intolerance acts as a natural restraint on the consumption of traditional dairy-based cheese, leading consumers to seek alternatives.

Opportunities:

• Expansion of the Plant-Based Cheese Market: The burgeoning plant-based food trend presents a massive opportunity for dairy-free cheese alternatives. Innovations in flavor, texture, and melting properties of plant-based cheeses are making them increasingly appealing to vegans, lactose-intolerant individuals, and even conventional cheese consumers, driving significant growth in this segment.
• Focus on Snacking and Convenience Products: The shift towards snacking and on-the-go consumption creates significant opportunities for cheese in convenient formats (e.g., cheese sticks, cubes, crisps, single-serve portions). Developing new product lines catering to this demand for quick, protein-rich, and flavorful snacks is a key area for growth.
• Product Innovation in Flavors, Fortification, and Functionality: There is continuous opportunity for innovation in new cheese flavors (e.g., international flavors, bold and spicy variants), functional cheese (e.g., fortified with vitamins, probiotics, or lower fat/sodium options), and novel textures and formats that cater to evolving consumer tastes and health trends.

Challenges:

• Maintaining Cold Chain Logistics and Shelf Life: Cheese, especially natural and specialty varieties, requires a robust and uninterrupted cold supply chain to maintain quality, freshness, and extend shelf life. High storage and logistics costs, particularly in developing regions with inadequate cold chain infrastructure, pose a significant challenge.
• Balancing Taste and Texture with Health Attributes: A key challenge for manufacturers is to develop "healthier" cheese options (e.g., low-fat, low-sodium) that do not compromise on the taste, texture, and sensory experience that consumers expect from cheese. Achieving this balance is crucial for wider consumer acceptance.
• Competition from Local and International Brands: The global cheese market is highly competitive, with a mix of large multinational corporations, established regional players, and numerous artisanal producers. This intense competition can lead to pricing pressures and requires continuous innovation and strong branding to maintain market share.

Cheese Market: Report Scope

Cheese Market: Segmentation Insights

The global cheese market is divided by product, source, type, distribution channel, and region.

Based on product, the global cheese market is divided into cheddar, mozzarella, parmesan, blue cheese, and others. Cheddar dominates the Cheese Market due to its widespread popularity, versatile culinary applications, and global consumer acceptance. Originating from England, cheddar cheese is now produced and consumed across North America, Europe, Asia-Pacific, and other regions. Its firm texture, sharp flavor (which varies with aging), and ability to melt smoothly make it suitable for a wide range of uses including sandwiches, burgers, baked dishes, and snacks. Cheddar is available in various forms such as blocks, slices, shreds, and spreads, further enhancing its market appeal. The growth of fast-food chains and ready-to-eat meals globally continues to support demand for cheddar, making it the most commercially significant cheese variety worldwide.

On the basis of source, the global cheese market is bifurcated into animal-based and plant-based. Animal-based cheese dominates the global Cheese Market, accounting for the vast majority of both production and consumption. This segment includes cheeses made from cow, goat, sheep, and buffalo milk, with cow’s milk being the most commonly used worldwide. Animal-based cheeses are available in a broad range of varieties including cheddar, mozzarella, parmesan, blue cheese, gouda, and brie. These cheeses offer distinct flavor profiles, textural characteristics, and nutritional content, including high levels of protein, calcium, and fat. The strong presence of dairy-based cheese in traditional cuisines across Europe, North America, and parts of Asia supports its continued dominance. In addition, advancements in aging processes, artisanal production, and dairy processing technologies have enabled the production of high-quality cheeses with long shelf life and rich sensory appeal. Despite rising concerns about lactose intolerance and environmental sustainability, demand for animal-based cheese remains robust, particularly in the retail, foodservice, and fast-food industries.

In terms of type, the global cheese market is bifurcated into natural and processed. Natural cheese dominates the Cheese Market, driven by strong consumer demand for authentic, minimally processed dairy products with rich flavor and nutritional value. Natural cheese is made using traditional fermentation processes and contains no artificial additives, emulsifiers, or preservatives. Common varieties include cheddar, mozzarella, parmesan, brie, gouda, and feta. These cheeses are widely used in cooking, baking, and direct consumption due to their superior texture, aroma, and taste. Natural cheese appeals especially to health-conscious consumers and culinary professionals seeking clean-label, high-quality ingredients. The expansion of artisanal cheese production and the increasing preference for organic and locally sourced dairy products are further reinforcing this segment’s dominance. Growth in international cuisines and premium cheese assortments in supermarkets is also accelerating demand for natural cheese, particularly in North America and Europe.

On the basis of distribution channel, the global cheese market is bifurcated into b2c/retail and b2b. B2C/Retail dominates the Cheese Market, as the majority of cheese is sold directly to end consumers through supermarkets, hypermarkets, specialty cheese shops, convenience stores, and online retail platforms. This segment includes a wide range of cheese types from mass-produced blocks, slices, and shredded varieties to artisanal and gourmet offerings. Consumers are increasingly seeking high-quality, natural, and specialty cheeses for home consumption, driven by growing awareness of global cuisines and the popularity of home cooking. The rising availability of organic, plant-based, and locally sourced cheeses in retail outlets is further fueling growth in this segment.

Cheese Market: Regional Insights

• North America is expected to dominate the global market

North America dominates the global cheese market, driven by high per capita consumption, product diversity, and strong demand across retail, foodservice, and industrial channels. The United States is the largest contributor, with cheddar, mozzarella, and processed cheese varieties widely used in fast food, packaged meals, and home cooking. The U.S. also has a robust cheese manufacturing base, supported by advanced dairy farming, cold chain logistics, and a well-developed retail distribution network. The growing popularity of natural and specialty cheeses, along with increasing lactose-free and plant-based cheese offerings, is expanding product variety and consumer reach. Canada contributes significantly as well, with strong demand for artisanal and European-style cheeses and continued investment in domestic dairy production despite import quota limitations.

Asia-Pacific is the fastest-growing region in the cheese market, fueled by rising Westernization of diets, expanding middle-class income, and increasing use of cheese in fast food and bakery items. Japan and South Korea lead the region with well-established dairy markets and steady consumption of both domestic and imported cheeses. China and India are rapidly growing markets—China is seeing increased use of mozzarella and cream cheese in pizza and dessert segments, while India’s urban consumers are embracing paneer-based and processed cheese varieties. Australia and New Zealand are both major producers and exporters, offering high-quality cheddar and specialty cheeses, with a strong presence in the Asia-Pacific region. The growth of foodservice chains and processed food industries is significantly boosting regional demand.

Europe holds a significant share of the cheese market, anchored by a rich cheese-making heritage, diverse product offerings, and strong consumer preferences for both traditional and specialty varieties. France, Germany, Italy, and the Netherlands are key producers and consumers. France and Italy are renowned for their aged and soft cheeses such as Camembert, Brie, and Parmigiano-Reggiano, which are also heavily exported. Germany has a large industrial cheese sector focused on semi-hard and processed cheese varieties. The Netherlands, known for Gouda and Edam, is one of the largest cheese exporters globally. EU regulations and PDO/PGI protections enhance quality control and support premium branding. Increasing demand for organic and vegan cheese options is also reshaping product innovation across the region.

Cheese Market: Competitive Landscape

The report provides an in-depth analysis of companies operating in the cheese market, including their geographic presence, business strategies, product offerings, market share, and recent developments. This analysis helps to understand market competition.

Some of the major players in the global cheese market include:

• Arla Foods Group
• Fonterra Co-operative Group Ltd.
• Glanbia Plc
• Saputo Cheese USA Inc.
• Bel Brands USA
• Inc.
• FrieslandCampina
• Daiya Foods
• Inc.
• Kite Hill
• Lactalis International
• Sargento Foods Inc.
• Bongrain S.A.
• FromageriesBel S.A.
• Mondelez International Group (earlier Kraft)
• GCMMF- Amul
• Almarai Company Ltd among others
• EMMI
• GROUPE LACTALIS S.A

The global cheese market is segmented as follows:

By Product

• Cheddar
• Mozzarella
• Parmesan
• Blue Cheese
• Others

By Source

• Animal-based
• Plant-based

By Type

• Natural
• Processed

By Distribution Channel

• B2C/Retail
• B2B

By Region

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • France
  • Germany
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• The Middle East and Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East Africa

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