Cheese Market By Product Type (Natural Cheese {Fresh Cheese, Soft Cheese, Semi-Hard Cheese}, Processed Cheese {Cheese Slices, Cheese Spreads, Cheese Powders, Processed Cheese Blocks}, Flavored Cheese {Herb-flavored, Spicy Cheese, Truffle-infused Cheese} Vegan Cheese, Lactose-Free Cheese), By Source (Cow Milk, Goat Milk, Sheep Milk, Buffalo Milk, Plant-based Alternatives), By Form (Blocks, Slices, Cubes, Spreadable, Shredded, Liquid Cheese), By Packaging (Bulk Packaging, Pre- Packaged Cheese, Specialty Packaging, Convenient Packaging), By Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Online Retail, Farmers' Markets, Food-service, Convenience Stores, Wholesale/Distributor), and By End-user (Household Consumers, Food-service Industry, Retailers, Industrial Use, Institutional Use, Online Consumers), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

 Industry Outlook

The Cheese Market accounted for USD 205.6 Billion in 2024 and is expected to reach USD 419.6 Billion by 2035, growing at a CAGR of around 6.7% between 2025 and 2035. The Cheese Market shows much potential and is expected to experience robust growth in the future due to enhanced customer consciousness in natural and cottage cheese products, increased use of convenience products, and increased utilization in the food service and processed food segments. New innovative products like plant-derived vegan cheese products and lactose-sensitive products help to reflect the changing eating habits of consumers and impose novel changes in packaging and sustainability.

The North American and European markets hold a large portion of the market because of well-established dairy industries; however, increased urbanization and changing food habits in the Asia-Pacific region present an opportunity for growth. This indeed is a challenging world with difficulties in raw material prices and periodic health threats, yet the future for the industry seems quite bright with steady growth being predicted for the coming decade.

Report Scope:

Market Dynamics

Increasing consumption of ready-to-eat and processed foods that utilize cheese as a key ingredient.

The Cheese Market is increased consumers’ consumption of convenience foods due to changing lifestyles and preferences of convenience foods due to busy schedules. Due to a lack of time and a growing population of working people, RTE and RTC segments are preferred where cheese is used as an ingredient. Pizza, sandwiches, burgers, pasta, and most convenience foods cannot go without cheese, making it a strong food ingredient in this segment.

The creation of shredded, sliced, and processed cheese has taken the convenience factor a notch higher for home chefs and food processors. Increased business in fast food joints and the takeaways has made sense of the use of cheese because most preparations include cheese as one of the main ingredients. Further, cheese snacks and individual serving cheese products continue to emerge in the market, suited for on-the-go consumers. Cheese producers are therefore adapting to the newer convenience-related products, for instance, exclusions that are suitable for microwave use. This demand is further driven by an increased number of cheese products available in supermarket malls, convenience stores, and through online orders. As consumers look for easier methods of preparation while still being able to satisfy their palate, the function of cheese in the confectionery sector grows.

Expanding distribution networks and online sales driving accessibility to a variety of cheese products.

The enhanced availability of cheese products through retail channels and online platforms has promoted the growth of the cheese products market worldwide. Supermarkets and hypermarkets continue to dominate as the primary distribution points for cheeses; processed and packaged cheese, traditional cheese, gourmet cheese, and specialty cheese are found at these outlets. Specialty stores and gourmet outlets also add other divisions that focus on specific categories of target consumers interested in particular types of cheeses. With the advent of online platforms, customers can sit back online and select from a plethora of choices of cheese products to order.

There is disclosure of quality information as well as a detailed account of the products for sale, ratings from customers, and home delivery, which makes it easier for the buyers. Retail packages and membership services have also grown, trending especially with the aficionado and the higher-end consumers. The globalization of retail through the World Wide Web makes it possible to obtain some international and rare cheese types. The rise of digital transactions and the current preference for doorstep delivery due to the pandemic also play an added role in online selling. Implementing this multichannel strategy has opened up new markets in both the urban and peri-urban centers for the cheese market.

Increasing popularity of vegan and plant-based diets has led to a surge in alternative products.

This could be attributed to the move by the cheese consumers towards environmentally friendly alternatives from plant sources, which threatens the growth of this market. Some of the macro trends influencing demand for vegan cheese for that, US consumers are turning to plant-based diets as a result of the health, environmental, and animal rights conscience checklist, taking to nuts, soy, coconut, and other nondairy sources for their alternatives. These products are especially attractive for clients with lactose intolerance or vegans, as well as individuals who pay close attention to their diets and prefer low-fat and low-cholesterol food products. Some of the factors by testing the flavors, texture, and nutritional qualities have enhanced plant-based cheese to have equal quality to the traditional cheese.

Many of the big food companies and food startups are putting in a lot of money in this segment, which means that the market is only going to become even more saturated. In the same vein, plant-based cheeses made for a better point of marketing themselves as sustainable and friendly to the environment in equal measure. Therefore, the time-tested cheese industry is under pressure to produce new products to sell to maintain its market base. It is changing customer trends and threatening dairy products' domination in the cheese industry.

Increased consumption of ready-to-eat meals and snacks incorporating cheese, particularly in urban areas.

Many consumers prefer convenience foods, which act as a key factor that influences the cheese market. Through urbanization and tight schedules, many people have resorted to taking their meals in a convenient method: the course meals wherein cheese takes the middle stage as an ingredient. Today, convenience is something that most customers are looking for; this explains why foods such as shredded cheese, slices of cheese, and even cheese in snack sizes are common. This also increases demand since we are now able to buy processed, heated, and served food like pizzas, lasagnas, or cheesy appetizers. Furthermore, cheese that comes in single servings or pre-packed small containers and packs is preferred by people who wish to take a protein-packed snack.

Enhanced economic buying power, food consumption, and especially eating out, has been fueled by increased absorption of dual-income households, which require convenient, affordable meals. This demand is met by supermarkets and other online platforms containing different convenient cheese products. Cheese is widely used in the food service industries, especially the fast-food ones, like burgers and sandwiches. Cheese is used in savory and luxurious foods, making it have better prospects in being a conscious consumer convenience food. It is particularly evident in developed urban cities and in regions undergoing a nutritional transition.

Increasing digital platforms and doorstep delivery services enhance consumer access to diverse cheese varieties.

Realizing the growing demand of consumers seeking specialty, artisanal, and imported cheeses that may not be available at conventional stores, the development of e-commerce platforms. As consumers continue to demand convenience in their lives, they now order their cheese through online delivery. The new forms of distribution, such as subscription services for cheese delivery, equally satisfy the emerging need for such concepts. The web is a source of information on the qualities and characteristics of products and their suitability through customer feedback. Third, the image and reputation create awareness while promotional incentives appeal to economic buyers.

This increase in the number of consumers switching to shopping via the Internet is in line with the global trend where there is a daily increase in spending on e-shopping, especially in the parts of the world that are witnessing rapid development of the Internet shopping environment. This means that cheese manufacturers are also stepping up on launching strong web visibility and enhancing delivery to satisfy the continually growing consumer base.

Industry Experts Opinion

“Rising consumer confidence in the UK’s cheese market is setting the stage for significant growth in 2024. She emphasized that consumer demand for both traditional and innovative cheeses will drive market expansion.”

- Heloise Le Norcy-Trott, Group Marketing Director at Lactalis UK & Ireland.

Segment Analysis

Based on the Product Type, the Cheese Market is classified into natural cheese, processed cheese, flavored cheese, novelty cheese, organic cheese, etc. Natural cheese incorporates fresh, soft, semi-hard, and hard; it remains the largest category due to preferences and conventional processing techniques. Sliced, spreadable, and cheese powders are becoming increasingly popular because of their versatility and longer life span than natural cheese. Cheese with tastes that are based on herbs, spices, or other ‘better’ ingredients like truffles is what is offered to consumers in flavored cheese. Growth in the specialty markets combining vegan and lactose-free cheese is another opportunity due to increasing consumer demand resulting from a growing trend of consuming plant-based and healthy-protein products. These diverse product types cover all tastes of the end consumer, including the basics and the luxury and special occasion types.

Based on the Source, the Cheese Market is classified into cow’s milk takes the top spot due to its availability and application, resulting in cheddar, mozzarella, and gouda cheeses, amongst others. Goat’s milk cheese, which is popular for its taste and health needs, is gradually emerging, especially in the European and North American countries. Eerie forms such as feta and pecorino from sheep’s milk are finding their way into the market because of their better taste and nutritional value. Raw milk from buffalo, particularly the mozzarella di bufala, is one of the cheeses with a continuous demand in markets like Italy. S Soy cheese, almond cheese, and cheese made from coconut milk are gaining increasing popularity due to the popularity of plant cheese and vegan cheese. They are a result of the following factors: consumer trends that show more preferences towards healthier, more diversified, and regional requirements for cheese production.

Regional Analysis

Currently, the Cheese Market detects that North American markets are dominant. In America, the two leading countries with higher demands towards processed cheeses, snacks, and convenience products are the U.S.A and Canada. Major players from Europe, like France, Italy, and Germany, are large consumers and producers of cheese and have a large variety of cheese ranging from premium or artisanal types.

France tops the list due to the variety of steady cheeses they produce; Italy, however, is famous for specialty types like parmesan and mozzarella cheeses. The trend for healthier products in these regions also helps organic, lactose-free, and vegan cheese variants to increase. The Asia-Pacific sector is experiencing remarkable growth because of consumers’ higher disposable income and increased urbanization, as well as the growing acceptance of Western culture of taking meals out. While previously defining itself as a mature market, today Latin America can be considered a young market; for example, Mexico has a high demand for basic types of cheese.

The most rapidly growing area of cheese consumption is the Asia Pacific region, which is improving its urbanity level and per capita income and embracing Western types of diets. Currently, powerhouses such as China and India are increasingly buying cheese products as the youth desire easy-to-prepare foods as well as those in line with Western palates. The increasing integration of international fast-food chains, as well as the food service business sectors, is also attributed to increased cheese consumption within these areas. As well, consumers’ increasing concern for healthy living is pushing them to opt for more niche cheese products like low-fat and lactose cheese.

Increased development of e-commerce and modern retail formats means that the consumer has better opportunities to choose a large number of cheeses, including exclusive and imported ones. Cheese is also enjoying a new thematic application in the region’s immensely diversified array of food cultures, thus keeping the markets growing. This trend is set to continue, especially with changing consumer trends where end products that contain dairy and are enriched with cheese are more popular.

Competitive Landscape

Currently, the world Cheese Market is highly sourced with Nestlé, Lactalis, Danone, and Arla Foods setting the pace with a large product range and global presence. They are still growing, both organically and through the acquisition of regional brands and a shift into specialty, organic, and plant-based cheese categories. Details follow that smaller producers of artisanal and craft cheese are exploiting the additional demand in the specialist and locally sourced cheese sector and are consequently increasing market share. Competition is also an issue that appears with such aspects as latest trends in packaging, including environmentally friendly and convenience-oriented packaging solutions in a bid to attract environmentally considerate customers.

There are therefore new dynamics introduced by e-commerce platforms to enable new entrants to compete at this level. Further, regional companies are in pursuit of taking opportunities in new emerging regions thereby unlocking, for instance, Chinese and Indian markets. On the cost front, there continues to be high price competition, with incumbents continuing to offer value-for-money products in addition to differentiated offerings that target affluent consumer segments. The lactose-free, low-fat, functional cheese product category is also exploring more investment in functional health-conscious cheese products. In this regard, there is a combination of innovation competition, brand affiliation, and quality evolution to capture the consumers’ demands.

Cheese Market, Company Shares Analysis, 2024

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Recent Developments:

• In January 2024, Lactalis announced plans to expand its production in North America, specifically in the U.S. and Canada, to meet the rising demand for both traditional and plant-based cheeses. This expansion is aimed at strengthening its position as a global leader in cheese production.
• In December 2023, Arla Foods unveiled a new line of organic cheeses made from sustainably sourced milk. The new product range includes a variety of gourmet cheeses aimed at health-conscious consumers in Europe. This launch is part of Arla’s commitment to increasing its organic product range.

Report Coverage:

By Product Type

• Natural Cheese
  • Fresh Cheese
  • Soft Cheese
  • Semi-Hard Cheese
• Processed Cheese
  • Cheese Slices
  • Cheese Spreads
  • Cheese Powders
  • Processed Cheese Blocks
• Flavored Cheese
  • Herb-flavored
  • Spicy Cheese
  • Truffle-infused Cheese
• Vegan Cheese
• Lactose-Free Cheese

By Source

• Cow Milk
• Goat Milk
• Sheep Milk
• Buffalo Milk
• Plant-based Alternatives

By Form

• Blocks
• Slices
• Cubes
• Spreadable
• Shredded
• Liquid Cheese

By Packaging

• Bulk Packaging
• Pre-Packaged Cheese
• Specialty Packaging
• Convenient Packaging

By Distribution Channel

• Supermarkets/Hypermarkets
• Specialty Stores
• Online Retail
• Farmers' Markets
• Foodservice/Restaurants
• Convenience Stores
• Wholesale/Distributor

By End User

• Household Consumers
• Food-service Industry
• Retailers
• Industrial Use
• Institutional Use
• Online Consumers

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• Nestlé S.A.
• Lactalis Group
• Danone S.A.
• Arla Foods
• Kraft Heinz Company
• Fonterra Co-operative Group
• Saputo Inc.
• FrieslandCampina
• Bel Group
• Godrej Agrovet Limited
• Murray Goulburn
• Emmi Group
• Kerry Group plc
• Britannia Industries Limited
• Dairy Farmers of America

Frequently Asked Questions (FAQs)