Cheese is one of the best-selling dairy products worldwide. From major traditional markets in Europe such as the United Kingdom, Italy, Spain, and France to the more varied marketplace of the United States and emerging consumer markets in Asia, global cheese sales are rising steadily.
Cheesemakers are, however, still faced with a variety of challenges that they must overcome. The marketplace is evolving at a rapid pace so producers must stay on top of current trends if they want to remain competitive. In this article, we investigate the trends that are currently shaping the global cheese market and take a look at the future potential of the cheese industry.
Current Consumer Trends in the Global Cheese Market
Despite the predictions of some industry analysts, consumer demand for cheese remains strong on a per capita basis worldwide. Nevertheless, cheese consumers are making more demands on producers. Consumers are now looking for healthier cheese and there is an increased consumer focus on the environmental aspects of cheese production.
Natural, Specialty, Regional and Gourmet Cheese
Consumers have become more sophisticated in their food choices in recent years. The increased interest in celebrity chefs, culinary programs, and quality food trends in general is driving a shift towards artisanal products. This is especially true in the cheese industry as many consumers view cheese as a luxury product. As tastes become more refined, consumers are seeking out speciality cheese, natural cheese made without additives, and regional and gourmet cheese. Smaller producers of regional gourmet cheese and producers of non-processed cheese can expect to gain an increased market share.
Eco-Friendly, Sustainable Cheese
More consumers than ever before are becoming concerned with the environmental footprint of their food choices. Consumers are now demanding that products are produced and packaged in an environmentally responsible way that focuses on sustainability and animal welfare. Cheesemakers can expect that products will require increased certification and labelling to prove their environmental credentials.
Increased Demand for Cheese with Functional Benefits
Health and wellness concerns are also key drivers of consumer trends. Research from industry experts has revealed that 55 per cent of adults in America purchase cheese snacks for their children because of the perceived health benefits. Consumer preferences are leaning towards cheeses that have added probiotics, increased levels of protein, and added vitamins and minerals. 27 per cent of American consumers have stated they are looking for cheese that has additional nutritional benefits.
Consumers Want Cheese that is Convenient
Cheese is still seen as a healthy, simple, and convenient snack food and as a comfort food. Many consumers increased their cheese consumption during the height of the Covid-19 pandemic as comfort foods such as grilled cheese sandwiches and cheesy pasta bakes became popular. These cheese-heavy dishes have remained part of many people’s diets.
On-the-go snacking habits have returned to normal pre-pandemic, and consumers are looking for healthy snack alternatives. Pre-packaged cheese in small portions and cheese-flavoured crisps are rapidly gaining an increased market share.
What Country Consumes the Most Cheese?
On a pounds per capita per year basis, the countries that consume the most cheese are France in first place with 57.9 pounds per capita, Germany in second place with 53.2 pounds, and Luxembourg in third place with 53.2 pounds. The following list makes up the rest of the top ten cheese-consuming countries:
- Iceland – 53.2 pounds per capita
- Greece – 51.5 pounds per capita
- Finland – 49.5 pounds per capita
- Italy – 48.0 pounds per capita
- Switzerland – 48 pounds per capita
- Estonia – 45.8 pounds per capita
- Netherlands – 42.7 pounds per capita
What is the Future Market Potential of Cheese?
When it comes to worldwide cheese market share, America is by far the leader with 38 per cent. Europe is in second place with approximately 30 per cent, the Asia Pacific region has risen to 20 per cent, Latin America is at eight per cent, and Africa and the Middle East account for four per cent of the worldwide cheese market.
In 2021, the global cheese market size was valued at US $154.83 billion. It is forecast to reach over US $205.9 billion by 2030. The CAGR of the global cheese market is 3.22 per cent from 2022 to 2030.
The European cheese market was worth US $29.72 billion in 2021 and is expected to grow at a CAGR of 4.65 per cent to exceed US $37.3 billion by 2026.
The North American cheese market was valued at US $38.98 billion in 2021 and grew to US $40.73 billion in 2022. It is expected to exceed $55.95 billion by 2029 with a CAGR of 4.64 per cent.
The Asia Pacific region is the fastest-growing cheese market worldwide with a value of US $42.90 billion in 2023 at the time of writing. The market is expected to grow annually by a CAGR of 8.51 per cent.
The worldwide market for vegan cheese was valued at US$1.36 billion at the end of 2021. Globally, the market for vegan cheese is forecast to grow at a compound annual growth rate (CAGR) of 10.48 per cent from 2023 to 2028.
Current Issues and Challenges for Cheesemakers
The dairy industry as a whole had to cope with a variety of issues in 2022. These challenges have continued into the first half of 2023 and are expected to last throughout the year. Disruptions in supply chains, a global economic slowdown, the impact of the war in Ukraine, and shifting consumer preferences have all affected growth. Issues with the worldwide milk supply remain problematic as do the effects of inflation.
Major cheese producers will need to focus their efforts on creating cheese that are suitable for lactose-intolerant consumers. Smaller producers should be able to capitalise on increased consumer demand for niche, regional and speciality products that are free from additives. All cheesemakers regardless of their size or location will need to be more aware of environmental concerns and strive to develop more sustainable methods of production.
High added-value proteins such as Promilk® could help improve recipes.
Sources
https://www.statista.com/outlook/cmo/food/dairy-products-eggs/cheese/asia
https://www.euromonitor.com/cheese-in-western-europe/report
https://www.giiresearch.com/report/dbmr1258971-europe-cheese-market-industry-trends-forecast.html
https://www.factmr.com/report/138/cheese-market
https://examine.com/conditions/lactose-intolerance/
https://www.scielo.br/j/cr/a/Hv3thyyHRJQ48bQvqpjvvZg/?format=pdf&lang=en
https://soyproteincn.com/70-of-consumers-want-animal-free-cheese-alternatives-study-finds/
https://www.dairyfoods.com/articles/95632-cheese-goes-back-to-the-future
https://store.mintel.com/report/the-future-of-cheese-market-report
https://www.fortunebusinessinsights.com/u-s-cheese-market-106630