Category Intelligence for Cheese Market

Cheese Market Overview

The global cheese market is witnessing significant growth, driven by increasing consumer demand for diverse cheese varieties, the rising popularity of plant-based alternatives, and expanding applications in the food industry. Investments in cheese production and processing are bolstering market expansion. This report offers an in-depth analysis of emerging procurement trends, highlighting opportunities for cost savings through strategic sourcing and innovative production practices. It also addresses future challenges in the supply chain and underscores the importance of digital procurement tools in accurately forecasting market dynamics, enabling clients to navigate this evolving landscape effectively.

The outlook for the cheese market is promising, with several key trends and projections indicating substantial growth through 2032:

• Market Size: The global cheese market was valued at approximately USD 187.42 billion in 2023 and is projected to reach around USD 287.12 billion by 2032, reflecting a compound annual growth rate (CAGR) of 4.61% from 2024 to 2032.

Sector Contributions

• Food Industry: The increasing consumption of fast food and ready-to-eat products is elevating the demand for various cheese types, including cheddar, mozzarella, and parmesan.


• Plant-Based Alternatives: The growing trend towards plant-based diets has led to the development of plant-based cheese products, catering to vegan and lactose-intolerant consumers.

Technological Transformation and Innovations
Advancements in cheese production technologies, such as precision fermentation and improved aging processes, are enhancing product quality and variety. Additionally, supplier performance management and vendor performance assessment are becoming crucial for companies in this competitive landscape to ensure consistent quality, optimize costs, and enhance supply chain efficiency.

Funding Initiatives
Increased investments in sustainable production practices and research are promoting cheese manufacturing, especially in regions adapting to changing consumer preferences and environmental concerns.

Regional Insights
Europe currently represents the largest cheese market, with a rich heritage of cheese production and consumption. However, the Asia-Pacific region is anticipated to experience rapid growth due to urbanization, increasing disposable incomes, and a growing affinity for Western diets.

Key Trends and Sustainability Outlook

• Sustainability Initiatives: Producers are adopting sustainable production methods, including water-efficient processes and organic farming practices, to meet environmental standards and consumer expectations.


• Health Trends: A surge in demand for healthy and natural cheese options is fuelling product innovation, including reduced-fat and organic cheese varieties.


• E-commerce Growth: The rise of online grocery shopping is expanding the market reach of cheese products, making them more accessible to consumers.

Growth Drivers

• Health Benefits: The recognition of cheese as a nutrient-dense food is driving consumer demand, contributing to market growth.


• Global Population Growth: An increasing global population is boosting demand for food products, including cheese, as a source of nutrition.


• Export Opportunities: Growing international demand, particularly from Asian markets, presents lucrative export opportunities for cheese producers.


• Digital Transformation: The adoption of digital procurement tools is enhancing supply chain efficiency, enabling stakeholders to better manage costs and inventory.

Overview of Market Intelligence Services for the Cheese Market

Recent analyses indicate that the cheese market is experiencing fluctuations in pricing due to variable weather conditions and increased production costs. To navigate these challenges, market reports provide detailed cost forecasts and procurement strategies that help stakeholders optimize their purchasing decisions. By leveraging insights from these reports, producers and buyers can effectively manage cost volatility while ensuring access to high-quality cheese products. Implementing strategic sourcing practices will enable stakeholders to mitigate risks and enhance their competitive advantage in the marketplace.

Procurement Intelligence for Cheese Market: Category Management and Strategic Sourcing

"To stay ahead in the cheese market, companies are optimizing procurement strategies by leveraging spend analysis solutions for vendor spend analysis and improving supply chain efficiency through supply market intelligence. Procurement category management and strategic sourcing are becoming essential to achieve cost-effective procurement, ensuring the timely availability of diverse and high-quality cheese varieties for production, distribution, and retail. By focusing on supplier collaboration and advanced procurement tools, businesses can effectively mitigate risks associated with cost volatility and quality control."

Pricing Outlook for Cheese Market: Spend Analysis

The cheese market is currently navigating a complex pricing landscape influenced by fluctuating costs driven by evolving consumer preferences, production challenges, and supply chain disruptions. This dynamic environment reflects the ongoing changes in both dairy production and the rising demand for plant-based cheese alternatives.

Our advanced analysis indicates a steady growth trajectory in cheese prices driven by several key factors, including:

• Rising Production Costs: Increased costs of milk production, feed, labour, and sustainable farming practices are significantly impacting overall cheese prices.


• Surge in Demand: Growing consumption of cheese in fast food, ready-to-eat products, and plant-based alternatives is boosting global demand.


• Export Opportunities: Expanding international markets, particularly in Asia and the Middle East, are creating competitive pricing pressures, contributing to volatility.


• Climate Impact: Environmental factors, such as extreme weather conditions affecting dairy farming regions, are impacting milk yield and supply, leading to price fluctuations.

Cost Breakdown for the Cheese Market: Cost-Saving Opportunities

1. Raw Milk (65%)

• Description: Constitutes the majority cost of cheese production, including the cost of milk sourced from dairy farms, which varies based on quality, region, and supply conditions.


• Trends: Prices are influenced by seasonal fluctuations, feed costs, and environmental conditions. Recent trends show a steady rise in milk prices due to higher feed costs and climate challenges affecting dairy farming regions. As of 2024, milk prices are projected to remain elevated due to strong demand for dairy products and constrained supply.

1. Labor (XX%)


2. Processing & Packaging (XX%)


3. Infrastructure & Overheads (XX%)

Cost-Saving Opportunity: Negotiation Levers and Purchasing Negotiation Strategies

In the cheese market, optimizing procurement can deliver significant cost savings and operational efficiencies. Collaborative purchasing allows dairy producers to negotiate bulk discounts on raw milk and other inputs, reducing procurement costs. Streamlining supply chain management through long-term contracts with reliable suppliers stabilizes pricing and ensures consistent quality. Adopting sustainable farming practices, such as better feed management and waste reduction, minimizes production costs for raw milk.

Supply and Demand Overview of the Cheese Market: Demand-Supply Dynamics and Buyer Intelligence for Effective Supplier Relationship Management (SRM)

The cheese market is experiencing steady growth, driven by increasing global demand for dairy products, innovations in production, and changing consumer preferences. Cheese consumption is expanding, especially in developing markets, while diversifying into new product categories like plant-based and specialty cheeses.

Demand Factors:

1. Health Consciousness: Growing awareness of the health benefits of cheese, such as high protein content and calcium, drives demand, especially for low-fat and organic options.


2. Plant-Based Alternatives: The rise of veganism and plant-based diets has led to an increase in the demand for dairy-free cheese alternatives, further diversifying the market.


3. Global Population Growth: As the global population increases, so does the demand for food, including cheese, due to its nutritional value and versatility.


4. Culinary Trends: Cheese continues to be a staple in various cuisines, from traditional to contemporary recipes, driving demand in both domestic and international markets.

Supply Factors:

1. Dairy Production: The dairy industry is the backbone of cheese production, with key suppliers in regions like Europe, the US, and New Zealand. Fluctuations in milk supply directly affect cheese production.


2. Technological Advancements: Innovations in cheese-making processes, including automated production and improved quality control, enhance supply chain efficiency and product consistency.


3. Sustainable Practices: Increasing adoption of sustainable dairy farming practices, including better feed management and waste reduction, ensures a steady supply while addressing environmental concerns.


4. Market Competition: The growing number of cheese producers, both traditional and artisanal, impacts pricing strategies and supply availability, creating a competitive market environment.

Regional Demand-Supply Outlook: Cheese Market

The image illustrates growing demand for cheese in both North America and Europe, with increasing competition and potential price fluctuations as new consumer trends emerge.

North America: A Key Player in the Cheese Market

North America, particularly the U.S. and Canada, plays a significant role in the global cheese market, characterized by:

1. Leading Producers: The U.S. and Canada are major cheese producers, with the U.S. leading as one of the largest cheese markets in the world. Both countries produce a variety of cheeses, ranging from mass-market options to high-quality artisanal varieties, catering to both domestic and international markets.


2. Strong Export Market: The U.S. is a top exporter of cheese, with major export destinations including Mexico, Japan, and Europe. The growing global demand for American cheese, including varieties such as Cheddar and mozzarella, strengthens its position in the international dairy market.


3. Innovation in Cheese Products: The rise in consumer demand for premium, plant-based, and flavoured cheeses has driven innovation in the sector. Dairy alternatives like plant-based cheeses are gaining popularity, while the demand for niche products such as artisanal, organic, and aged cheeses continue to grow.


4. Sustainability Focus: U.S. and Canadian dairy farmers are embracing sustainability with more efficient farming practices, water conservation, and reduced environmental impact. This has led to a greater emphasis on ethical sourcing and sustainable production methods, which are increasingly demanded by consumers.


5. Consumer Trends: There is a growing consumer preference for high-quality and specialty cheeses in North America, with premium, organic, and healthier options like reduced-fat or low-sodium varieties becoming more common. Additionally, the popularity of cheese in new formats such as snacks and ready-to-eat meals is fuelling market expansion

Supplier Landscape: Supplier Negotiations and Strategies
The cheese market has a diverse and extensive supplier landscape, involving both global and regional players that supply raw materials and services essential for cheese production, processing, and distribution. Key suppliers provide ingredients such as milk, enzymes, cultures, packaging materials, and processing machinery, contributing to the overall efficiency, sustainability, and quality of cheese production.

Currently, the supplier landscape is marked by strong relationships between dairy producers and suppliers of agricultural inputs, as well as packaging and machinery suppliers. These collaborations are critical for improving dairy quality, optimizing production processes, and meeting consumer demands. The growing focus on sustainability has prompted closer partnerships with suppliers offering eco-friendly products and practices.

Some of the key raw material suppliers in the cheese market include:

• Arla Foods


• Danone S.A.


• Nestlé S.A.


• Chr. Hansen A/S (for cultures and enzymes)


• DSM Nutritional Products (for probiotics and enzymes)


• BASF (for dairy ingredients and solutions)


• Glanbia Nutritional


• Tetra Pak (for packaging solutions)


• Cargill, Inc. (for dairy ingredients and sweeteners)


• Alfa Laval (for processing and heat transfer equipment)

Key Development: Procurement Category Significant Developments (Cheese Market)