Cheese Market By Product Type (Fresh Cheese, Soft Cheese, Semi-Hard Cheese, Hard Cheese, Processed Cheese), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Retailers, Specialty Stores, Direct Sales), By Source (Cow Milk, Buffalo Milk, Goat Milk, Sheep Milk), By End-User Industry (Household, Foodservice Industry, Food Manufacturers, Retail), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Cheese Market was valued at USD 176.7 billion in 2023 and will surpass USD 264.6 billion by 2030; growing at a CAGR of 5.9% during 2024 - 2030.

The global cheese market has witnessed significant growth, driven by increasing consumer demand for dairy products, innovation in cheese varieties, and evolving dietary preferences. Cheese is a versatile product consumed across different regions, making it a staple in households, restaurants, and the foodservice industry. As consumers become more discerning about food quality and seek unique cheese varieties, the market has diversified to include various types of cheese, distribution channels, and sources. This segmentation highlights the dynamic nature of the industry, with each subsegment contributing to the overall market growth. This report delves into the largest or fastest-growing subsegments within each segment, offering insights into current trends and future outlooks.

Product Type Segment is Largest Owing to Hard Cheese's Popularity

The product type segment of the cheese market is diverse, encompassing fresh cheese, soft cheese, semi-hard cheese, hard cheese, processed cheese, and others (flavored cheese, cheese spreads). Of these, hard cheese represents the largest subsegment in terms of market share. Hard cheeses such as Cheddar, Parmesan, and Gouda are favored for their rich flavors, longer shelf life, and versatility in cooking and snacking. They are commonly used in a variety of dishes, from pizzas to sandwiches, contributing to their widespread consumption.

The popularity of hard cheese is also supported by its aging process, which enhances its flavor profile and makes it ideal for export markets. Cheddar, in particular, remains a global favorite, leading to strong demand in regions like North America, Europe, and Asia. Additionally, the increasing preference for premium and artisanal hard cheeses, driven by consumer interest in higher-quality dairy products, further solidifies the dominance of this subsegment. As consumer tastes evolve, hard cheeses are expected to remain central to the global cheese market.

Distribution Channel Segment is Fastest Growing Owing to Online Retailers

The distribution channel segment includes supermarkets/hypermarkets, convenience stores, online retailers, specialty stores, and direct sales. The fastest-growing subsegment within this category is online retailers, which have seen a surge in demand, particularly in the wake of the COVID-19 pandemic. Online grocery shopping platforms have made it more convenient for consumers to purchase a wide variety of cheese products from the comfort of their homes, offering greater accessibility to niche and artisanal cheeses.

E-commerce platforms also provide a broader selection of cheese, including imported varieties that may not be available in local supermarkets or hypermarkets. As the online shopping trend continues to rise, especially with younger consumers and tech-savvy buyers, the online retail subsegment is set to experience rapid growth. Furthermore, the growth of subscription-based services offering curated cheese boxes has contributed to this trend, tapping into the consumer desire for convenience and unique food experiences.

Source Segment is Largest Owing to Cow Milk's Dominance in Cheese Production

The source segment of the cheese market includes cow milk, buffalo milk, goat milk, sheep milk, and other milk sources. Among these, cow milk remains the largest subsegment by a significant margin, accounting for the majority of cheese production globally. Cow milk is preferred due to its availability, cost-effectiveness, and versatility in producing various types of cheese, including hard, soft, and processed varieties. It also offers a consistent supply for large-scale cheese manufacturers and is a key ingredient in both domestic and commercial cheese production.

The dominance of cow milk is further reinforced by its ability to produce high yields of cheese and its suitability for mass production. Additionally, cow milk cheese is widely consumed across various regions, including North America, Europe, and Asia-Pacific, maintaining its position as the primary source for cheese production. While alternative milk sources such as goat and sheep milk are gaining popularity in niche markets, cow milk will continue to lead the cheese industry due to its extensive infrastructure and established production processes.

End-User Segment is Fastest Growing Owing to the Foodservice Industry

The end-user industry segment of the cheese market consists of households, foodservice industry, food manufacturers, and retail. The foodservice industry is the fastest-growing subsegment, driven by the increasing demand for cheese in restaurants, cafes, and fast-food chains. The growing popularity of cheese-based dishes, such as pizzas, burgers, and sandwiches, is contributing to the expansion of this segment. Additionally, the rise of food delivery services and the growing trend of eating out have amplified the consumption of cheese in the foodservice sector.

As the foodservice industry continues to grow, particularly in emerging markets where dining out is becoming more common, cheese consumption in this sector is expected to increase. The use of cheese as a topping, filling, or ingredient in a wide variety of dishes enhances its demand among foodservice providers. Moreover, food manufacturers supplying the foodservice industry are continually innovating to meet the increasing consumer preference for high-quality, flavorful, and authentic cheese varieties.

Region Segment: Europe Leads the Cheese Market in Consumption

In terms of geography, Europe holds the largest market share in the global cheese market, with countries like France, Italy, and Germany being major consumers and producers. The long-standing tradition of cheese production and consumption in these countries has established Europe as the dominant region for both production and innovation in cheese varieties. The high per capita cheese consumption in Europe, particularly in countries such as France and Switzerland, supports the sustained growth of the cheese market.

Europe’s strong dairy industry infrastructure, combined with its rich history of artisanal cheese production, ensures that the region will maintain its leadership position. Additionally, the increasing demand for specialty cheeses, such as organic and grass-fed varieties, is bolstering growth in the European cheese market. While Europe remains the leader in cheese consumption, emerging regions like Asia-Pacific are witnessing rapid growth in cheese demand, driven by changing dietary habits and rising disposable incomes.

Competitive Landscape and Leading Companies

The cheese market is highly competitive, with numerous global and regional players vying for market share. Leading companies in the cheese industry include Nestlé S.A., Danone S.A., FrieslandCampina, Fonterra Co-operative Group, Saputo Inc., and Arla Foods, among others. These companies are known for their extensive product portfolios, which cater to a wide range of consumer preferences, from mass-market to premium and artisanal cheeses.

To stay competitive, these companies are investing heavily in product innovation, sustainability, and expanding their distribution networks. Additionally, mergers and acquisitions are common as companies seek to broaden their product offerings and enter new markets. For example, large companies are focusing on acquiring smaller regional producers or launching new cheese varieties to appeal to the growing demand for organic and specialty cheeses. As competition intensifies, the market will likely see more collaboration and innovation aimed at meeting the evolving needs of cheese consumers globally.

List of Leading Companies:

• Nestlé S.A.
• Danone S.A.
• FrieslandCampina
• Fonterra Co-operative Group Limited
• Saputo Inc.
• Kraft Heinz Company
• Arla Foods
• Lactalis Group
• Bel Group
• Dean Foods
• The Kraft Heinz Company
• General Mills
• Murray Goulburn Co-operative
• Chobani LLC
• Bongrain SA (Savencia Fromage & Dairy)

Recent Developments:

• Nestlé introduced a new line of plant-based cheeses aimed at catering to the growing demand for dairy alternatives, reflecting the shift towards vegan and lactose-free products.
• FrieslandCampina expanded its footprint in Asia by acquiring a leading cheese manufacturer, aiming to capitalize on the growing demand for cheese products in the region.
• Saputo Inc. announced a significant investment in sustainable packaging for its cheese products, aiming to reduce plastic usage and enhance the environmental credentials of its product lines.
• Arla Foods launched an expanded range of organic cheeses to meet the increasing consumer demand for clean label and organic dairy products in key markets like Europe and North America.
• Kraft Heinz entered a strategic partnership with leading retail chains to enhance the distribution and visibility of its cheese products, focusing on the expansion of its processed cheese portfolio.

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