Cheese is a food product that is produced from pressed curds of milk. It is firm, semi-liquid, and elastic in nature. It is a highly nutritious and palatable milk-derived food and is available in a wide range of tastes and flavors. Cheese is highly rich in nutrition such as minerals, proteins, calcium, and other important nutrients.
The global cheese market is estimated to be valued at US$ 223.38 billion in 2028 and is expected to exhibit a CAGR of 7.3 % over the forecast period (2021-2028).
Figure 1. Global Cheese Market Value (US$ Bn), by Region, 2020
Europe held dominant position in the global cheese market in 2020, accounting for 38% share in terms of revenue, followed by North America and Asia Pacific, respectively. The continuous increase in quick service restaurants, disposable income, prolonged life of cheese combined with increasing population is catalysing cheese market growth in Europe.
Global Cheese Market: Drivers
Growth in household food budget and increasing instance of eating out is creating demand for cheese products. The increasing urban population coupled with the increase in the household food budget due to the rise in the working women force is accelerating the market growth of the cheese. According to the United Nation, in 2018, 55% of the world’s population lives in urban areas, a proportion that is expected to increase to 68% by 2050. Thus increase in the urban population is propelling the market growth.
Increasing spending on food products by consumers due to increasing purchasing power is projected to drive market growth. According to the Bureau of Labor Statistics, in 2019, Spending on food increased 3.1 percent over this period in the United States, the increase was driven by both food at home, spending, up 4.0 percent, and food away from home spending, up 1.9 percent. Hence, increasing spending on a food product by consumers is augmenting the market growth of cheese.
Global Cheese Market: Opportunities
Expansion of international food chain services such as the Yum group, Dominos, and Subway is expected to bring new market opportunities. These restaurants offer food at an affordable rate and are also introducing innovative food products with cheese for increasing consumer base which is again projected to foster the market growth of the cheese. Moreover, increasing consumption of fast-food in countries such as India and China is again projected to stimulate the market growth of cheese.
The growing demand for spreadable cheese and block cheese is expected to offer immense growth opportunities. For instance, in February 2020, Tillamook’s Farmstyle launched four new spreadable Cream cheese in four flavors made without gums, fillers, or preservatives. original; aged cheddar; seriously strawberry, which is made with real strawberries; and very veggie, featuring bell peppers, carrots, cucumbers, and onions are four flavors.
|Base Year:||2020||Market Size in 2021:||US$ 136.37 Bn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||7.3%||2028 Value Projection:||US$ 223.38 Bn|
Arla Foods, Inc., Bongrain SA, Fonterra Co-Operative Group Ltd., Fromageries Bel S.A., Mondelez International Group (Kraft), Sargento Foods Inc., GCMMF – AMUL, Almarai Company Ltd., Saputo Inc., Royal FrieslandCampina N.V., Groupe Lactalis S.A, and Emmi
|Restraints & Challenges:||
The increasing consumption of dairy products is increasing the penetration of new brands in the market. This is expected to be one of the growing trends in the industry. For instance, in October 2019, Wensleydale Dairy Products announced the launch of the new cheese brand "The Yorkshire Creamery" with the launch of new cheese products. The new range includes three cheeses, all available in 320g and 200g pack sizes. Extra Mature Yorkshire Cheddar, Yorkshire Red, and Double Yorkshire.
Partnership and agreements between key manufacturers for business expansion is a growing trend. For instance, in April 2020, Wyke Farms, enter into a partnership with Westland Cheese to increase distribution of cheese across Holland and Germany. As per the partnership, Westland Cheese will support the Wyke Farms to market and sell their cheese products in Holland and Germany.
Figure 2. Global Cheese Market Share, By Product Type, 2020
Key Takeaways of the Graph:
Global Cheese Market: Restraints
The shorter shelf-life of the cheese product is projected to hamper market growth. Cheese is a highly perishable product and this becomes the major concern for manufacturers during the supply chain as its perishability makes its shelf-life shorter at a different stage of the supply chain, thereby restricting the market growth of cheese.
Increasing demand for low-fat healthy food due to the growing prevalence of various lifestyle diseases is expected to limit the consumption of cheese. Cheese contains a lot of unsaturated fat which possess various health-related problems. Thus, the growing demand for low-fat food products is projected to hamper market growth.
Global Cheese Market: Competitive Landscape
Major players operating in the global cheese market include, Arla Foods, Inc., Bongrain SA, Fonterra Co-Operative Group Ltd., Fromageries Bel S.A., Mondelez International Group (Kraft), Sargento Foods Inc., GCMMF – AMUL, Almarai Company Ltd., Saputo Inc., Royal FrieslandCampina N.V., Groupe Lactalis S.A, and Emmi
Global Cheese Market: Key Developments
January 2019: Emmi expanded its Kaltbach portfolio of cheeses in the US with a new cave-aged gouda, made with milk from dairy farmers in central Switzerland.