Cheese Market Analysis US - Size and Forecast 2024-2028

US Cheese Market Size 2024-2028

The US Cheese market size is projected to increase by USD 11.4 billion, at a CAGR of 4.39% between 2023 and 2028. The market is witnessing significant growth due to the increasing consumer demand for cheese products, driven by their versatility and nutritional benefits. The growth of online retailing is another major trend in the market, providing consumers with greater convenience and accessibility. However, several health issues associated with cheese consumption, such as lactose intolerance and high saturated fat content, pose challenges to market growth. Additionally, the market is witnessing a shift towards the production of organic and natural cheese, as consumers become more health-conscious and environmentally aware. The market is expected to continue its growth trajectory, driven by these trends and challenges, with potential opportunities in emerging markets and the development of innovative cheese products.

Market Overview 

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Market Dynamics

The market is a significant segment of the food and beverage industry, valued for its rich nutritional profile and versatility as a dietary source. Cheese is a dairy-based source of essential nutrients such as protein, calcium, phosphorus, zinc, and various vitamins. With an increasing number of health-conscious consumers, cheese has gained popularity as a nutritional supplement. Organic and plant-based cheese alternatives cater to the lactose intolerant and vegan population. The market encompasses various types, including cheddar and mozzarella, and is used extensively in packaged meals, food service, fast-food items, and convenience food. Western cuisines, particularly Italian and Mexican, heavily rely on cheese for flavor and texture. Health-related issues, such as obesity and high cholesterol, may impact cheese consumption. The supply chain for cheese involves raw milk procurement, processing, packaging, and distribution. Cheese continues to be a staple in various ethnic cuisines, contributing to its enduring popularity.

Our researchers analyzed the data with 2023 as the base year, along with the key trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Increasing consumer demand for cheese products is notably driving market growth. Cheese, a dairy-based food source beloved for its rich, indulgent taste, continues to gain popularity in the US market. Its versatility extends to various cuisines, from Western dishes like pizza and pasta to ethnic options such as Italian and Mexican. In packaged meals and fast-food items, cheese adds a savory, creamy element, enhancing the overall taste experience. However, health concerns related to cheese consumption include obesity, cholesterol, heart diseases, food-borne gastroenteritis, and lactose intolerance for some. To cater to diverse dietary needs, plant-based cheese and vegan products have emerged. The market's growth is influenced by factors such as convenience food trends, health-related issues, and FDA regulations concerning nutrient content and food additives.

The dairy industry's oversupply of milk contributes to the increasing sales of cheese. Specialty cheesemakers and HoReCa sectors thrive on artisanal and functional varieties, while fresh products maintain their appeal. Despite these trends, packaging costs and ingredient transparency remain concerns for consumers. The cheese market's future growth will depend on addressing these issues while catering to evolving consumer preferences and dietary needs. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends 

Growth of online retailing is the key trend in the market. The market has witnessed significant growth due to various factors, including the increasing preference for packaged meals and convenience food in Western cuisines. Dairy-based sources, such as cheese, continue to be popular, especially in food service and fast-food industries, despite health-related issues like obesity, cholesterol, and heart diseases. However, plant-based cheese and vegan products cater to lactose intolerance and food sensitivities, offering a viable alternative. The nutrient content and health effects of cheese, including saturated fat and food additives, are subject to FDA regulations and consumer health concerns.

Cheese sales have been influenced by supply chain issues, such as oversupply of milk in the dairy industry and the rise of specialty cheesemakers and HoReCa sectors. Artisanal varieties and functional cheeses, like flavored and fresh products, have gained popularity in ethnic cuisines, such as Italian and Mexican. Packaging costs and ingredient transparency are essential considerations for manufacturers and distributors to maintain profitability and customer trust. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

Several health issues associated with cheese consumption is the major challenge that affects the growth of the market. Cheese, a beloved component of various cuisines worldwide, is both cherished for its taste and raising concerns due to its potential health effects. The high saturated fat content in cheese, a significant concern, is linked to elevated cholesterol levels, heart diseases, obesity, and other health issues. Consumption of high-fat cheeses, particularly without moderation, can negatively impact cardiovascular health. Another health challenge is lactose intolerance, affecting many people who struggle to digest lactose, the natural sugar present in milk and dairy sources. In response, the market offers alternatives such as plant-based cheeses and vegan products. Food service, fast-food items, and convenience food industries incorporate these options to cater to diverse consumer needs. Health-related issues extend to food-borne gastroenteritis, which can be caused by bacteria in unpasteurized milk or improper handling during production.

The nutrient content and food additives used in cheese production are subject to FDA regulations, addressing health concerns. Shelf life, packaging costs, and ingredient transparency are essential considerations for both dairy-based and plant-based cheese manufacturers. The cheese industry faces challenges in the oversupply of milk and the demand for specialty cheeses, artisanal varieties, and functional varieties. The HoReCa sectors, including ethnic cuisines like Italian and Mexican, continue to drive cheese sales. However, the dairy industry must adapt to consumer preferences and health concerns, focusing on innovation, sustainability, and ethical production methods. Hence, the above factors will impede the growth of the market during the forecast period

Market Segmentation

By Source

The market share growth by the animal-based segment will be significant during the forecast period. The type of cheese which are derived from cow milk is referred to as animal-based cheese. Factors such as versatility, creamy texture, and a wide variety of flavors are driving the dominance of the animal-based segment in the cheese market across the US.

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The animal-based segment was valued at USD 27.50 billion in 2018. Cheddar, mozzarella, Swiss, and gouda are some of the popular types of cow milk cheeses available in the cheese market in US. Factors such as the use of cow-milk cheese in various cuisines, from everyday cooking to gourmet dishes,  availability of a range of options, from mild and creamy to sharp and aged, catering to diverse consumer preferences and other nutritional benefits are significantly driving the animal-based segment in the US.

Company Overview

Company are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Key Offering - Associated Milk Producers Inc: The company offers cheese such as American-style cheeses.
• Key Offering - DairyfoodUSA: The company offers cheeses such as smoked gouda cheese, plant-based vegan cheese, and food service cheese. 
• Key Offering - Great Lakes Cheese Co. Inc: The company offers cheese such as Blue, Feta, Gorgonzola, Goat, Reduced Fat Blue, and Reduced Fat Feta.

The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market players, including:

• BEL SA
• Cacique Foods LLC
• Dairy Farmers of America Inc.
• First Choice Ingredients
• Gilman Cheese
• Global Foods International Inc
• HEMME BROTHERS FARMSTEAD CREAMERY
• Hilmar Cheese Co. Inc.
• Hooks Cheese
• Land O Lakes Inc.
• Mozzarella Co.
• Saputo Inc.
• The Kraft Heinz Co.
• Vella Cheese Co.
• Widmers Cheese
• Wild Rose Foods
• Zingermans

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Source Outlook
  • Animal-based
  • Plant-based
• Distribution Channel Outlook
  • Offline
  • Online

Market Analyst Overview

Cheese is a popular food and beverage item known for its rich taste and versatility. It is a dietary source of essential nutrients such as protein, calcium, phosphorus, zinc, vitamins, and various health benefits. Proteins and calcium are crucial for bone health, making cheese an effective remedy against osteoporosis. Phosphorus and zinc contribute to the growth, development, and maintenance of body tissues. Vitamins like A, D, and B12 are essential for eye health, immune function, and energy production. Health-conscious consumers increasingly prefer organic cheese produced on farms free from growth hormones, antibiotics, and pesticides.

The demand for organic cheese is driven by the growing awareness of its health benefits and the negative effects of processed food, especially fast food, on health. Cheese is available in various types, including cow milk, sheep milk, goat milk, buffalo milk, natural cheese, and processed cheese. Popular varieties include mozzarella, cheddar, feta, parmesan, roquefort, and many more. Retail channels such as convenience stores, online platforms, and B2B and B2C sales contribute to the growth of the cheese market. Cross-culture food consumption and the health benefits of cheese in preventing cardiovascular diseases further fuel the market's growth. The texture and unique flavors of artisanal and premium cheese add to their appeal.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across the US
• Thorough market growth analysis of the market's competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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