Cheese Market Expected to Reach $252.2 Billion by 2035

According to a new report published by Allied Market Research, titled, “Cheese Market," The cheese market size was valued at $175 billion in 2023, and is estimated to reach $252.2 billion by 2035, growing at a CAGR of 3.1% from 2024 to 2035.

Cheese is a dairy product derived from the coagulation of milk proteins, primarily casein, through the addition of rennet or acid. It involves the separation of curds and whey, followed by pressing, aging, or processing to achieve a desired texture, flavor, and form. Cheese can be made from various types of milk, including cow, goat, sheep, and buffalo, and is available in numerous varieties such as fresh, aged, soft, hard, and processed.

The growing popularity of Western cuisines in emerging markets is a significant driver of the cheese market, as these dishes often feature cheese as a key ingredient. Globalization increased international travel, and exposure to Western food culture through media and dining chains have introduced consumers in countries like India, China, Brazil, and South Africa to cheese-rich meals such as pizzas, burgers, pasta, and baked goods. This shift in eating habits has led to a rise in demand for various types of cheese, including mozzarella, cheddar, and cream cheese, especially among younger and urban populations. As Western-style fast food and casual dining outlets expand in these regions, cheese consumption is becoming more mainstream. In addition, the fusion of Western recipes with local flavors is creating new culinary trends, further increasing cheese’s versatility and appeal. This cultural shift is paving the way for domestic and international cheese brands to grow and diversify their offerings.

However, health concerns over high fat and sodium content in certain cheeses are increasingly acting as a restraint on cheese market growth, particularly among health-conscious consumers. As awareness about lifestyle-related diseases such as obesity, hypertension, and heart conditions rises, many individuals are reducing their intake of full-fat and heavily salted cheeses. Nutritionists and health advocates often caution against excessive cheese consumption, especially processed varieties, which are perceived as high in saturated fats and sodium. This perception can lead to a shift in consumer preferences toward plant-based or low-fat dairy alternatives, reducing demand for traditional cheese products. In addition, regulatory pressures and labeling requirements in several countries are compelling manufacturers to reformulate products or clearly disclose nutritional content, which can increase production costs and affect consumer appeal. These concerns are particularly influential among aging populations and younger demographics focused on fitness and wellness, thereby limiting the cheese market opportunities for growth in certain segments.

Moreover, the launch of low-fat, lactose-free, and fortified cheese products is creating strong opportunities for the cheese market demand by addressing the evolving dietary needs and health concerns of modern consumers. With rising awareness about heart health, weight management, and lactose intolerance, many consumers are actively seeking healthier cheese options. Low-fat cheeses cater to calorie-conscious individuals, while lactose-free variants are for those with dairy sensitivities—especially prevalent in regions like Asia and Africa. In addition, fortified cheeses enriched with nutrients such as calcium, vitamin D, and probiotics appeal to health-focused buyers, including the elderly and families with children. These innovations not only expand the consumer base but also help reposition cheese as a nutritious part of a balanced diet. As wellness trends continue to shape food choices globally, offering functional and inclusive cheese products allows manufacturers to differentiate their brands, enter niche markets, and boost long-term customer loyalty.

The cheese market segmentation is divided into source, type, product, distribution channel and region. On the basis of source, the market is categorized into sheep milk, goat milk, buffalo milk, and cow milk. On the basis of type, the market is divided into natural and processed. On the basis of product, the market is divided into Mozzarella, Feta, Roquefort, Cream Cheese, Cheddar, Parmesan, Blue Cheese, Gouda, Ricotta, Mascarpone, and others. On the basis of distribution channel, the market is divided into B2B and B2C. Region-wise, the cheese industry is analyzed across North America (U.S., Canada and Mexico), Europe (France, Germany, Italy, Spain, UK, Russia and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, Kazakhstan, Azerbaijan, Uzbekistan, Georgia and Rest of Asia-Pacific) Latin America (Brazil, Argentina and Rest of Latin America) and Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa)

By source, the cow milk segment dominated the cheese industry in 2023 and is anticipated to maintain its dominance during the forecast period owing to its widespread availability, cost-effectiveness, and high consumer preference. Cow milk is rich in essential nutrients, making it ideal for producing a wide variety of cheese types with consistent quality and taste. In addition, the well-established cow dairy industry and advanced processing technologies contribute to higher production efficiency, supporting the segment’s continued growth across global markets.

By type, the natural cheese segment dominated the cheese market in 2023 and is anticipated to maintain its dominance during the forecast period owing to its clean-label appeal, authentic flavor, and growing consumer preference for minimally processed foods. Natural cheese is considered healthier and more nutritious, attracting health-conscious consumers. The demand is further boosted by its extensive use in cooking, snacking, and foodservice applications. Its association with premium quality and traditional preparation methods supports its leading market position.

By product, the cheddar segment dominated the cheese market in 2023 and is anticipated to maintain its dominance during the forecast period owing to its versatility, long shelf life, and wide application in both household and commercial food preparations. Cheddar’s firm texture and rich flavor profile make it suitable for burgers, sandwiches, baked goods, and ready meals. Its global popularity, availability in various aging levels, and adaptability to diverse culinary uses continue to strengthen its market share worldwide.

By distribution channel, the B2B segment dominated the cheese market in 2023 and is anticipated to maintain its dominance during the forecast period owing to its strong demand from the foodservice sector, including restaurants, hotels, and catering services. Bulk purchasing by manufacturers and institutional buyers ensures consistent supply and cost-efficiency. In addition, B2B distribution supports long-term contracts and partnerships, enabling stable revenue streams for producers. The segment benefits from expanding fast food chains and bakery outlets that rely heavily on cheese as a key ingredient.

Region wise, Europe dominated the cheese market in 2023 and is anticipated to maintain its dominance during the forecast period owing to its strong cheese-making tradition, high per capita consumption, and wide variety of specialty and artisanal cheeses. The region is home to globally recognized cheese-producing countries such as France, Italy, Germany, and the Netherlands, which contribute significantly to both production and exports. In addition, supportive dairy infrastructure, established retail networks, and growing demand for premium and organic cheese products continue to strengthen Europe’s leadership in the global cheese market.

Players operating in the market have adopted various developmental strategies to expand their cheese market share, increase profitability, and remain competitive in the market. The key players profiled in the report include Arla Foods Amba, The Bel Group, Fonterra Co-operative Group Limited, The Kraft Heinz Company, Groupe Lactalis S.A, Savencia SA, Britannia Industries Limited, Associated Milk Producers, Saputo Inc.and Gujarat Cooperative Milk Marketing Federation Ltd.

Key Takeaways

• According to cheese market trends, on the basis of type, the natural cheese segment dominated the market in 2023.
• According to cheese market analysis, on the basis of source, the cow milk segment dominated the market in 2023.
• By product, the cheddar segment dominated the market in terms of revenue in 2023.
• By distribution channel, the B2C segment dominated the market in terms of revenue in 2023.
• By region, Europe dominated the market in terms of revenue in 2023. However, Asia-Pacific is anticipated to grow at the highest CAGR during the cheese market forecast period.