Global cheese market is estimated to witness high growth owing to increasing health benefits and growing consumption among millennials
The global Cheese Market is estimated to be valued at USD 104.16 Bn in 2024, exhibiting a CAGR of 5.5% over the forecast period (2024-2031). The market is witnessing high growth owing to increasing awareness about various health benefits of cheese such as providing essential nutrients, protein, calcium, and conjugated linoleic acid. Furthermore, the millennial population is significantly driving the demand for cheese as a snacking and meal preparation ingredient due to changing dietary habits.
The growth of the global cheese market is primarily driven by two factors. Firstly, the rising health consciousness among consumers has increased the demand for nutrient-rich dairy products like cheese. Cheese is known to aid digestion, improve heart health, and strengthen bones owing to its calcium and vitamin content. Secondly, the expanding foodservice industry globally has led to higher consumption of cheese-based snacks, meals and ready-to-eat products. Novel product launches incorporating flavor innovations and varying texture are also attracting more consumers. Food chains have extensively added cheese-based menu offerings. Both the drivers are expected to accelerate market revenues over the forecast period.
Growing Demand for Protein-rich Foods is Driving the Global Cheese Market
The demand for protein-rich foods has been steadily growing around the world. Cheese is considered a good source of protein and nutrients. According to nutritionists, cheese can help support muscle growth and provide sustained energy. It contains high-quality protein that contains all nine essential amino acids. The protein in cheese aids in muscle building, repair, and boosts metabolism. The rise in health and fitness consciousness has fueled the demand for cheese as people look for protein alternatives. Cheese manufacturers have responded by introducing new variety of cheese enriched with extra protein. The added protein content is proving popular among fitness enthusiasts and health-conscious consumers. The growth in gyms and number of people focusing on their protein intake has strengthened demand in the global cheese market.
Increasing Health Awareness is Encouraging the Demand for Low Fat Cheese Varieties
With growing health awareness, people are becoming conscious about limiting their fat and calorie intake. Low fat cheese varieties have emerged as a healthier option compared to regular cheese. Cheese manufacturers are innovating new products tailored for health-conscious consumers. They are introducing low fat cheese made from skim or partly skimmed milk. Such cheeses have lower saturated fat and calorie content while retaining the nutritional profile of regular cheese. The growing diabetic and obesity patient base is also opting for low fat cheese instead of regular varieties. Health organizations and nutritionist recommending low fat diets have boosted the popularity of low-fat cheese varieties. The ability to provide similar taste and experience with lower calories is driving sales in the global low fat cheese market.
High Prices of Some Specialty and Organic Cheeses Acting as a Restraint
While cheese is popular globally, its demand is constrained by higher prices of some varieties. Specialty cheeses produced in limited volumes using traditional methods and rare breeds of milk commanding premium prices. Their specialized production techniques lead to high costs which get reflected in higher retail prices. Many consumers are priced out of purchasing expensive artisanal, specialty and organic cheeses due to budget constraints. The high prices limit their affordability and mass appeal. Even as incomes rise globally, specialty and high-end cheeses remain out of reach for cost-conscious shoppers and large consumer segments in developing nations. The niche and specialized nature of some designer and luxury cheeses inhibits their volume growth potential in the global market.
Stringent Food Safety Norms Increasing Compliance Burden on Producers
Stringent food safety laws and standards globally have increased regulatory compliance burden on cheese producers. Issues like hygiene, use of preservatives and additives are highly monitored. Producers have to invest in advanced facilities, equipment and training to adhere to evolving norms. Smaller farms and artisanal producers find it difficult to bear the costs of certification and audits required to export cheeses internationally. The paperwork and documentation further adds to their administrative overheads. While regulations aim to ensure quality and safety, they end up increasing the cost of production. This is a challenge for dairy farmers and small enterprises with limited budgets. Regulatory variation across counties also affects their ability to foray into new markets and export cheeses globally.
Growing Popularity of Artisanal and Specialty Cheeses Opening New Opportunities
As lifestyles evolve and people explore diverse cuisines, artisanal and specialty cheeses are gaining popularity. Their unique flavors and histories provide a differentiated experience compared to regular cheeses. Consumers want to try new exotic varieties produced using traditional methods. It opens opportunities for small cheesemakers to cater to rising niche demand. Farmers can diversify into specialty production utilizing local milk varieties and indigenous production practices. It helps them fetch higher prices and position unique products in the specialty cheese segment. The growing home chef and DIY food trend also benefits artisanal cheesemakers. Individuals are increasingly buying online or visiting local farms and pop-up stores to procure specialty cheeses. The experience economy is driving niche demand globally which smaller farms can leverage.
Health and Wellness Trend Boosting Plant-based and Vegan Cheese Market
Rising health consciousness and focus on sustainable diets is driving the plant-based and vegan cheese market. With mounting evidence on health impacts of dairy, many consumers are reducing or eliminating animal products. This presents an opportunity to manufacturers developing dairy-free vegan cheese made from plant sources like cashews, coconuts and soy. Their non-dairy formulation attracts vegans as well as those following paleo, keto or lactose-free diets. Food service providers are also adding vegan cheese options to their menus. Its ease of substitutions in recipes makes it an appealing alternative for flexitarians.
Link - https://www.coherentmarketinsights.com/market-insight/cheese-market-3511
Key Developments:
- In March 2024, Franklin Foods introduced its new plant-based cream cheese brand, SimplyV, to grocery stores. This innovative product aims to meet the increasing demand for plant-based alternatives, providing consumers with a tasty and versatile option for spreads, dips, and cooking.
- In April 2024, Kraft Natural Cheese launched a new product line named Kraft Flavor Fusions. This line includes shredded cheese blends that merge Kraft's traditional cheese varieties with distinctive flavor profiles.
- In June 2022, Land O Lakes Cheese introduced its Land O Lakes® Shredded Cheese line in Wisconsin, offering seven distinct shredded cheese products that can be found in the dairy section of grocery stores.
- In 2022, Saputo produced, marketed, and distributed a diverse range of high-quality dairy products, including cheese, fluid milk, extended shelf-life milk and cream products, cultured items, and dairy ingredients. Among their innovations, Saputo Cheese USA Inc. introduced 'Frigo Cheese Heads Swirls,' a convenient on-the-go snacking option. This product features a delightful combination of mozzarella and cheddar cheese twisted together to create flavorful swirls, available under the 'Frigo Cheese Heads' brand.
Key Player:
The Kraft Heinz Co., Arla Foods Inc., Bongrain SA, Fonterra Co-Operative Group Ltd., Fromageries Bel S.A., Mondelez International Group (Kraft), Sargento Foods Inc., Almarai Company Ltd., Saputo Inc., Royal FrieslandCampina N.V., Groupe Lactalis S.A, Emmi, Land O'Lakes, Inc., Lactose A/S, Dairiconcepts, L.P., FrieslandCampina, Kanegrade Limited, Aarkay Food Products Ltd., Kerry Group Plc, and Dairy Farmers of America Inc
