Published on: November 21, 2019

Cheese Market Analysis

Cheese is a milk-based product, available in a wide variety of textures, taste, and aroma, depending on the source of milk and the age of the cheese. We categorize the cheese market as a part of the overall packaged foods and meats market. The packaged foods and meats products market covers manufacturers or food processing vendors that are involved in food processing to eliminate microorganisms and to extend shelf life. The packaged foods and meats market is part of the global food and beverage market which was valued at USD 7.93 trillion in 2018 and is expected to grow at a moderate pace. Our reports on the cheese market provide a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis covering around 50 vendors.

The worldwide increase in milk production is expected to lead to a corresponding increase in cheese production. The global milk output is estimated to cross 840 million tonnes in 2018, an increase of 2.2% from 2017. Meanwhile, the global cheese exports increased to 2.57 million tonnes in 2018, representing a growth of 0.8% over 2017.

Generating approximately USD 50 billion in retail sales, Western Europe is the largest cheese market globally, followed by North America. The top five cheese exporting countries accounted for approximately 55% of the global cheese exports in 2017. In terms of value, the global cheese market size is forecasted to cross USD 160 billion by 2020.

Cheese Market

There are various underlying factors that are expected to drive or hinder the growth in the cheese market during the forecast period. Our analysis identifies the following factors to be driving the growth in the cheese market:

Rising demand from the food industry as cheese is one of the important ingredients for a host of fast foods such as burgers, sandwiches, hotdogs, and pizza.
High consumer demand for protein-rich products such as cheese, which plays a key role in the growth and development of the human body. The demand for protein-rich food products has risen significantly over the last decade.
The growing demand for cheese from developing countries that are witnessing growing preference of western food cuisines. For instance, in 2017 the global cheese imports by china exceeded 0.1 million tonnes, growing at a CAGR of 20% from 2012 to 2017.

Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:

According to WHO, in 2016, globally, more than 650 million adults were obese. Increasing health consciousness amongst individuals who are realizing that excessive consumption of cheese and other high-calorie products may lead to obesity could reduce sales of cheese products.
Intense competition amongst the existing players who are trying to differentiate their products on the basis of nutritional content, price, and different varieties and flavors.
According to the USDA data, the per capita consumption of butter in the US increased from 5.6 pounds in 2015 to 5.8 pounds in 2018. The increasing threat of consumers substituting cheese with other products such as jams, butter, peanut butter, etc. can adversely affect the cheese market.

Rising demand for natural, unprocessed, and low-fat cheese and the introduction of new varieties from the manufacturers are some of the global cheese market trends. There is also an increasing demand for organic milk and organic milk-based products. For instance, the cheese made from organic milk has been gaining popularity, with its sales estimated to have reached USD 750 million in 2018.

Cheese Market Segmentation

Based on product type, the cheese market is segmented into:

Italian cheese
American cheese
Hard cheese (such as Halloumi and Gouda),
Fresh cheese
Soft cheese (fromage frais, camembert, and mascarpone),
and Others.

Based on variants, the cheese market can be segmented into:

Mozzarella cheese
Cheddar cheese
Feta cheese
Parmesan cheese
Roquefort cheese
and Others

Based on the source of milk, the cheese market can be segmented into:

Cow milk
Buffalo milk
Goat milk
Sheep
Other sources

We provide a detailed analysis of more than 50 vendors operating in the cheese market, including some of the prominent vendors such as Fonterra Co-operative Group Limited, Savencia SA, The Kraft Heinz Company, Arla Foods amba, and Groupe Lactalis. Consolidation of existing manufacturing plants and mergers and acquisitions are some of the business and market penetration strategies being adopted by manufacturers in the cheese market.

Some of the key developments mentioned in the cheese market report include:

Fonterra plans to consolidate its specialty cheese making facilities, resulting in the closure of its Te Roto factory. The planned consolidation will see operations move to Eltham.
Savencia acquisition of fellow cheese manufacturer Papillon as part of the company's strategy to extend its portfolio of original brands.
Groupe Lactalis acquisition of the milk products business of Prabhat Dairy Ltd for USD 239 million in its third takeover deal in the country. This acquisition further expands the presence of French dairy multi-national in the Indian market.

Backed with competitive intelligence and benchmarking, our cheese market research is designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.