The cheese market is projected to grow from USD 105.5 billion in 2025 to USD 178.5 billion by 2035, with a CAGR of 5.4% during the forecast period. This growth is being driven by the rising demand for cheese in both developed and developing regions, where the increasing popularity of dairy-based snacks, health-conscious eating trends, and a preference for convenient food options are fueling demand. Additionally, cheese's versatility in cooking, snacking, and processed food products continues to support its expansion in global markets.
| Attributes | Description |
|---|---|
| Estimated Global Cheese Business Size (2025E) | USD 105.5 billion |
| Projected Global Cheese Business Value (2035F) | USD 178.5 billion |
| Value-based CAGR (2025 to 2035) | 5.4% |
Cheddar cheese is expected to hold a significant portion of the market, accounting for an estimated 39% of the global cheese market by 2025. The conventional cheese segment will continue to dominate, with an expected 95% market share in 2025.
The widespread appeal of cheddar cheese, due to its mild flavor and adaptability in various culinary applications, positions it as a top choice among consumers worldwide. Furthermore, conventional cheese varieties maintain their dominance due to cost-effectiveness, consistency, and established consumer preferences.
In August 2024, researchers from INRAE, CEA, CNAOL, and CNIEL revealed a fascinating discovery after analyzing over 2,000 samples of French PDO (Protected Designation of Origin) cheeses and nearly 400 milk sources.
They uncovered a significant relationship between microbial diversity and cheese production practices. The study, published in ISME Communications, demonstrated how the unique terroirs and regional landscapes of France shape the microbial diversity of PDO cheeses, resulting in distinct flavors. The research highlights the importance of local microbes, such as bacteria, yeasts, and molds, in defining the taste and texture of France’s PDO cheeses. This discovery adds depth to the ongoing understanding of microbial influence on cheese quality and production techniques.
The table below provides a comparative analysis of the variation in CAGR over six months for the base year (2024) and the current year (2025) in the global cheese market. This semi-annual assessment highlights key performance trends and revenue growth patterns, offering valuable insights into the market’s trajectory.
The first half of the year (H1) spans from January to June, while the second half (H2) includes the months from July to December. The market is projected to expand at a CAGR of 4.9% in H1 from 2025 to 2035, with an accelerated growth rate of 5.5% in H2. Moving into the subsequent period from H1 2025 to H2 2035, the CAGR is expected to reach 5.1% in the first half and maintain a steady growth of 5.8% in the second half. The first half (H1) recorded an increase of 30 BPS, while the second half (H2) saw a marginal decrease of 20 BPS.
| Particular | Value CAGR |
|---|---|
| H1 (2024 to 2034) | 4.9% |
| H2 (2024 to 2034) | 5.5% |
| H1 (2025 to 2035) | 5.1% |
| H2 (2025 to 2035) | 5.6% |
Traditional cheese dominated the global cheese market because it is cost-effective, widely available, and has strong penetration in mainstream retail and food service channels. In emerging low-medium income tier markets, where economics are the driving force behind cheese purchases, conventional cheese is soaring. Popular cheese types such as cheddar; mozzarella; and Gouda are extensively used in pizza, sandwiches, and processed dairy products, resulting in bulk sales across the globe. Moreover, increasing demand for cheese in developed economies of Asia and Latin America bodes well for the continued presence of conventional cheese in the industry.
The global cheese industry is witnessing the rapidly rising sub-segment - organic cheese that derives its base from increasing preference of consumers towards clean label, less processed, and environmentally sustainable products. Even with a currently lower percentage of industry share compared to conventional cheese today, the organic segment is projected to experience the fastest-paced expansion, as increasingly health and environmentally-conscious consumers opt for natural and chemical-free dairy products.
Organic cheese production is characterized by using organic milk, which is produced without the use of synthetic hormones, antibiotics, and pesticides, catering to consumers looking for premium, health-oriented alternatives. The rising demand of the milk is also due to the absence of artificial additives and following sustainable farming practices; as a result, they have seen increased sales in developed markets like North America and Europe.
The retail demand for organic cheese is reinforced by the rising availability of gourmet and specialty varieties, with varieties like organic cheddar, gouda and brie gaining traction. Even the food service industry is following this trend, as fine dining establishments, cafes, and bakeries add organic cheese to their list of offerings to meet the dietary needs of health-focused consumers.
Dairy-based cheese continues to dominate the cheese sector. It is a staple food in traditional and modern diets due to its authenticity, texture qualities, flavor profile, and nutritional value. European varieties remain the largest segment, with regional production of cheese like Parmesan, Gouda, and Cheddar enjoying strong global demand. Consumers of gourmet and artisanal cheese are also drawn to dairy-based cheese due in part to the popularity of aging and fermentation techniques.
Even as people grow interested in vegan and lactose-free products, plant-based cheese alternatives face challenges in terms of texture and taste. As a consequence, in professional cheese contexts where authenticity and flavor integrity are particularly vital, dairy-based cheese remains virtually unopposed.
Plant-based cheese is steadily expanding its share of the global cheese industry, spurred by demand for vegan, lactose-free and allergen-friendly products. Despite this, the plant-based side holds a smaller segment of the industry compared to dairy-based cheese but is growing at a rapid pace with increasing consumer concerns regarding health, environmental sustainability and ethical awareness driving this change. It is usually made from things like nuts, soy, coconut and pea protein appeals to consumers looking for dairy-free options that don’t skimp on variety.
Common varieties include plant-based cheddar, mozzarella and cream cheese, popular in wide uses for pizzas, sandwiches and dips. Changes in consumer habits towards flexitarian diets accelerated the growth of these alternatives, especially in North America and Europe, the most dominant region for plant-based eating trends.
Commodity prices and consumer preferences lead to price sensitivity. The price jumps can be due to feed costs, weather events and global dairy supply surpluses or shortages. Then, disease outbreaks like a bluetongue virus outbreak in Europe or bad pasture seasons can dent milk output even more, raising costs.
On the consumer side, worries about saturated fat and sodium in conventional cheese are leading some people to moderate their consumption. Plant-based dairy alternatives are on an upward trajectory of growth at 12-14% annually with appeal to vegans, the lactose intolerant and eco-friendly shoppers. Environmental and animal welfare concerns also matter; younger consumers are increasingly choosing products with a smaller carbon and water footprint, pressuring producers to reevaluate their ingredients and methods.
Branded cheeses-like European PDO varieties or aged English cheddars-command premium prices due to their reputation and quality. For example, a cheese block may have a list price of USD 4 but sell for USD 3.50 after trade allowances, with retail prices around USD 3.99. Promotions such as “2 for USD 5” specials drive volume and help manage inventory.
Additionally, companies practice global market arbitrage by diverting cheese to regions where prices are higher; the USA producers may export more to the EU when shortages drive up prices, as seen when cheddar prices rose approximately 5.7% in late 2024. This dynamic pricing strategy is essential for maintaining margins in a competitive market.
The global cheese market is structured into Tier 1, Tier 2, and Tier 3 players based on production capacity, brand presence, distribution networks, and revenue share.
Tier 1 Players - Market Leaders
Tier 1 consists of dominant global players with extensive manufacturing facilities, widespread distribution networks, and strong brand portfolios. These companies have significant market share and continuously expand their production capacities to meet rising demand. Investments in automation, advanced dairy processing technologies, and sustainability initiatives are shaping their competitive strategies. These players are also focusing on acquisitions, partnerships, and premium product lines, including organic, artisanal, and plant-based cheeses, to cater to evolving consumer preferences.
Tier 2 Players - Regional and Emerging Competitors
Tier 2 includes mid-sized manufacturers with a strong regional presence. These companies are expanding their market reach by launching innovative cheese variants and improving supply chain efficiencies. Many Tier 2 players are investing in clean-label and natural ingredient formulations to align with growing consumer demand for minimally processed products. Their strategies often involve expanding into international markets and strengthening their foothold through retail and foodservice partnerships.
Tier 3 Players - Small-Scale and Niche Producers
Tier 3 comprises small-scale and local cheese producers that primarily cater to niche segments. These include specialty cheesemakers focusing on handcrafted, organic, or region-specific cheeses. While their market share is relatively smaller, they are gaining traction due to rising consumer interest in premium and authentic cheese varieties. These players emphasize sustainability, ethical sourcing, and limited-edition artisanal offerings to differentiate themselves in an increasingly competitive market.
Overall, increased production capacity, clean-label trends, and strategic expansions continue to shape the market concentration of the global cheese industry.
| Countries | CAGR (2025 to 2035) |
|---|---|
| The USA | 4.61% |
| France | 3.6% |
| Germany | 3.9% |
| Italy | 4.5% |
| The UK | 3.12% |
The USA is ranked as the top cheese-producing nation globally, and it has been estimated to register a 4.61% CAGR in the 2025 to 2035 period (USDA, 2023). The country alone produces over 6 million metric tons of cheese annually and is ranked as the globe's largest producer of cheese (USDA, 2023). Cheese is prompted by quick food restaurants like McDonald's, Domino's, and Subway, whereby cheese is an ordinary ingredient on pizzas, burgers, and sandwiches.
The American dairy sector is at an advantage with mass production and technology at its disposal, allowing it to be produced in bulk more efficiently. Besides this, the appetite for natural, organic, and specialty cheese is also increasing on the part of consumers, leading to increased sales of specialty cheeses such as Blue Cheese, Goat Cheese, and Smoked Cheddar. Tillamook, Kraft, and Sargento are dominant players in the sales of cheese through the mass-market and premium markets.
Growth Drivers in the USA
| Key Drivers | Details |
|---|---|
| Demand of Fast-food Industry | Domino's, Pizza Hut, and McDonald's are large chains that rely on overuse of cheese, and hence Mozzarella and Cheddar demand is growing. |
| Largest Producer & Exporter | The United States produces more than 6 million metric tons of cheese annually (USDA) and is the largest exporter to over 150 countries. |
| Growth of Specialty & Natural Cheeses | Increasing demand for organic, grass-fed, and specialty cheeses like Blue Cheese and Brie. |
| Technological Developments | Technological developments in cheese preservation, packaging, and plant-based alternatives drive market growth. |
France, with over 1,200 varieties of cheese, is likely to grow at a CAGR of 3.6% from 2025 to 2035. France is a top consumer per capita (27.2 kg per year) (CNIEL, 2023). Brie, Camembert, and Roquefort are among the cheeses that remain strong domestic and export demand.
France has strict PDO (Protected Designation of Origin) standards that guarantee quality and authenticity of cheese made in France. Traditional production dominates, with small-scale dairy farms making distinctive, high-quality cheeses. French exports of cheese abroad have been more than €3.8 billion up to 2023, the biggest markets being Germany, the UK, and the USA
Growth Drivers in France
| Key Drivers | Details |
|---|---|
| Cultural Significance of Cheese | Cheese is ubiquitous in French food, with a daily presence in every household. |
| Protected Designation of Origin (PDO) Cheeses | Over 50 cheeses hold PDO status, ensuring strict regional standards of manufacture. |
| World Exports & Luxury Industry | In 2023, France alone exported over €3.8 billion worth of cheese, the leaders being Brie, Roquefort, and Comté. |
| Sustainable & Traditional Production | Increasing interest in raw milk cheeses and green production. |
The German cheese market is anticipated to grow at a CAGR of 3.9% from 2025 to 2035 due to strong per capita consumption (24.7 kg per year) and an advanced dairy industry (BMEL, 2023). Germany is the second-largest cheese-producing nation in Europe, with over 2.5 million metric tons of production per annum.
In contrast to France and Italy, Germany's cheese industry is extremely industrialized with a focus on price, efficiency, and innovation. Among the most popular consumed forms of cheese are Gouda, Cambozola (Camembert and Gorgonzola blends), and Emmental. Germany is also a significant exporter of cheese, with the products being shipped to Italy, France, and the Netherlands.
Growth Drivers in Germany
| Key Drivers | Details |
|---|---|
| High Domestic Consumption | Germans consume over 24.7 kg of cheese per capita yearly (BMEL, 2023). |
| Industrial Efficiency & Innovation | Large players of the milk industry such as DMK Group and Hochland optimize bulk production. |
| Strong Cheese Export | Germany exports 1.3 million metric tons of cheese yearly and ranks as the second-largest European export nation of cheese. |
| Rise in Demand for Soft & Hybrid Cheeses | Varieties such as Cambozola (blend of Camembert + Gorgonzola) find traction. |
Italy's cheese production is dependent on PDO and PGI-covered cheeses such as Parmigiano Reggiano, Grana Padano, and Gorgonzola. Italy is a top cheese exporter, and in 2023 it provided over €5 billion worth of cheese (CLAL, 2023). Italian cheese is highly demanded in the EU, USA, and Asian markets because of its genuineness and aging.
Local consumption centers on fresh cheeses, with household names such as Mozzarella, Ricotta, and Burrata in Italy. The industry also sees an increase in the production of organic and grass-fed cheese, drawing in health-conscious consumers.
Growth Drivers in Italy
| Key Drivers | Details |
|---|---|
| PDO & PGI Certified Cheeses | Italy has over 50 PDO cheeses, which ensure authenticity and international demand. |
| Major Exporter of Aged Cheeses | Italy had shipped out €5 billion worth of cheese in 2023, led by Parmigiano Reggiano and Grana Padano. |
| Robust Domestic Demand for Fresh Cheeses | Domestic demand is led by Mozzarella, Ricotta, and Burrata. |
| Growing Organic & Sustainable Cheese Production | Growing demand for grass-fed, minimally processed cheeses. |
The retailing sector is the biggest winner in the UK cheese industry, with supermarkets such as Tesco, Sainsbury's, and Waitrose holding sales power. The favourite among cheeses consumed is Cheddar, representing almost 50% of total share.
Relative to France and Italy, the UK is a substantial importer of cheese, like Dutch Gouda, French Brie, and Italian Mozzarella. The most dramatic growth is arguably the development of dairy-free cheese substitutes, like Violife and Applewood Vegan, losing share as increasingly consumers are looking towards vegan and flexitarian options.
Growth Drivers in the UK
| Key Drivers | Details |
|---|---|
| High Penetration of Supermarkets | Over 80% of the sale of cheese occurs in large retail groups. |
| Ownership of Cheddar Cheese | 50% of the entire UK cheese market is owned by Cheddar. |
| Increased Demand for Vegan Cheese | The UK leads the rest of Europe in formulating vegan cheese, with Violife increasing exponentially. |
| Strong European Cheese Imports | The UK imports enormous amounts of Brie, Mozzarella, and Gouda. |
The global cheese market is characterized by a consolidated competitive landscape, with dominant players, key players, and emerging firms. Dominant players such as Lactalis Group, Arla Foods, and Fonterra Co-operative Group hold leading positions, supported by their extensive product portfolios, global distribution networks, and well-known brands like Président, Castello, and Galbani.
Key players including Saputo Inc., Kraft Heinz, and Bel Group focus on diverse cheese offerings, from processed to natural cheeses, with strong regional presences in North America and Europe. Emerging players like smaller regional cooperatives and plant-based cheese producers are gaining traction by catering to the growing demand for organic, artisanal, and plant-based alternatives, offering innovative solutions in the evolving cheese market.
Recent Cheese Industry News
The industry is segmented into organic cheese and conventional cheese.
The industry includes dairy-based cheese and plant-based cheese
The industry is segmented into mozzarella, cheddar, pepper jack, parmesan, gouda, and others.
Cheese is available in block, cube, shreds, slice, spread, powder, and sticks.
The industry is categorized into food and beverage industry, HoReCa (hotels, restaurants, cafes), and household retail.
Cheese is distributed through B2B, B2C, modern trade, convenience stores, traditional grocery stores, specialty stores, online retail, and other retail formats.
The industry is analyzed across North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.
The global cheese industry is projected to grow at a CAGR of 5.4% during 2025 to 2035.
The global cheese industry is expected to reach USD 178.5 billion by 2035.
This segment is anticipated to witness the fastest growth due to increasing consumer preference for dairy alternatives, lactose-free diets, and rising vegan consumption patterns.
The market is driven by growing demand for convenience foods, rising popularity of specialty cheeses, fast-food chain expansion, and innovations in plant-based alternatives.
Leading players include Lactalis Group, Arla Foods, FrieslandCampina, Saputo Inc., Fonterra Co-operative Group, and Bel Group.
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