The global cheese market continues to show resilience despite economic uncertainties and evolving consumer preferences. According to a recent MarketsandMarkets report, the market is valued at USD 88.7 billion in 2021 and is projected to reach USD 105.9 billion by 2026, growing at a CAGR of 3.6%.
This steady growth highlights how cheese remains a staple in both developed and developing regions, supported by its versatility, strong demand in convenience foods, and innovations in product forms.
Conventional Cheese Still Dominates, but Organic Is Rising
Conventional cheese remains the largest segment, driven by affordability and availability in multiple varieties. However, growing consumer awareness of production practices is pushing interest toward organic options. While debates continue over the safety and nutritional advantages of conventional versus organic cheese, the lower price point of conventional products ensures they remain a preferred choice globally.
Expanding Cheese Formats Drive Demand
Cheese consumption is evolving with consumer lifestyles. Beyond traditional blocks and wheels, cheese is increasingly available in slices, shreds, and grated forms that fit into fast-paced, convenience-driven food habits. This flexibility has fueled demand in the foodservice sector, as well as in retail, where packaged formats are seeing strong growth.
Cheese powders, in particular, are gaining traction in snacks, sauces, and ready meals, reflecting the broader demand for quick and easy meal solutions. Findings from recent cheese market research indicate that powders and specialty formats are becoming growth drivers in both developed and emerging regions.
Retail Boom Amid Home Cooking Trends
The COVID-19 pandemic brought a surge in retail cheese sales, as more households turned to cooking at home. Pre-sliced, pre-shredded, and grab-and-go cheese options have become increasingly popular. Additionally, the rise of online grocery and door-to-door delivery services has further supported cheese consumption by making it more convenient for consumers to stock up.
A major beneficiary of these shifts has been the fresh cheese market, with products such as ricotta, cream cheese, and cottage cheese seeing strong sales as they cater to consumers looking for lighter, versatile dairy options.
The US Cheese Market: Size and Opportunities
In North America, demand remains robust. According to the latest US cheese market report, cheddar and mozzarella continue to dominate, largely driven by their use in fast food and packaged meals. At the same time, innovations in plant-based cheese alternatives are beginning to attract attention among health-conscious buyers.
The US cheese market size reflects the country’s position as one of the largest consumers globally, supported by its strong fast-food culture, growing retail sector, and a surge in at-home cooking.
Europe Leads the Global Cheese Industry
Europe remains the powerhouse of global cheese production and consumption, accounting for 43.7% of the market share in 2020. Germany is the leading producer, offering a wide range of cheeses including hard, semi-hard, soft, and fresh varieties. Cheese plays an integral role in German cuisine, particularly in ready meals, dips, dressings, and bakery products.
By 2026, Europe’s cheese market is projected to reach USD 44.82 billion, supported by strong domestic demand and a well-established dairy industry. Leading players in the region include Glanbia (Ireland), Dalter Alimentari Spa (Italy), Savencia SA (France), and FrieslandCampina (Netherlands).
Key Takeaway
The cheese industry is on a steady upward trajectory, supported by its adaptability across cuisines, convenience-driven formats, and strong demand in both foodservice and retail sectors. While conventional cheese remains dominant, organic and specialty varieties are gaining ground as consumer preferences shift. With Europe leading in production and innovation, the market is poised for sustained growth through 2026.
