Cheese Market Opportunities, Retail Dynamics and Forecast Review(2021-2027) |UnivDatos

According to UnivDatos, the global cheese market is projected to grow at a CAGR of ~4% between 2021 and 2027, offering substantial opportunities for manufacturers, investors, and foodservice providers alike. As culinary boundaries blur and demand for cheese-based snacks grows, the market is becoming one of the most dynamic segments in the global food industry.
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From creamy mozzarella on pizzas to sharp cheddar in gourmet burgers, cheese has become a global staple-embedded in everything from traditional European dishes to modern fast-food menus. The global cheese market, once concentrated in Western cuisines, is now experiencing a transformation, driven by changing consumer tastes, rising disposable incomes, and a dramatic expansion of fast-food chains worldwide.
Europe Still Reigns, But APAC Shows Bold Appetite
Geographically, Europe remains the undisputed leader in cheese production and consumption. In 2020 alone, the European Union’s 27 countries produced 10.35 million metric tons of cheese, solidifying the region’s deep-rooted dairy legacy. Countries like Germany, France, Italy, and the Netherlands continue to dominate global exports, thanks to their centuries-old cheese-making traditions and robust dairy infrastructure.
However, while Europe holds the lion’s share, the spotlight is gradually shifting towards the Asia-Pacific region. Nations such as China, Japan, India, and South Korea are witnessing an uptick in cheese consumption. This is driven by Westernized dietary patterns, urbanization, and the proliferation of international fast-food chains across metros and tier-2 cities. The result? A rapid increase in demand for cheese-based snacks, processed food, and ready-to-eat meals.
Cheese is no longer a one-type-fits-all category. The global market is diversifying in terms of product offerings to meet evolving consumer preferences. Based on product type, cheese is segmented into Mozzarella, Cheddar, Feta, Parmesan, Roquefort, and others.
Among these, Cheddar cheese generated the highest revenue in 2020. Its hard texture, creamy mouthfeel, and sharp flavor profile make it a versatile ingredient in both traditional dishes and modern fusion cuisines. Mozzarella continues to dominate in the fast-food segment, thanks to its integral role in pizzas and pastas. Meanwhile, regional cheeses like Feta and Roquefort are gaining popularity among health-conscious and gourmet consumers seeking bolder and more diverse flavor experiences.
Source Matters
One of the most critical segmentation parameters in the cheese market is the source of milk. The market is divided into Cow Milk, Goat Milk, Sheep Milk, and Buffalo Milk.
In 2020, cheese derived from cow milk accounted for the largest revenue share, primarily due to its rich fat and protein content that enhances both flavor and texture. Additionally, cow milk is more readily available and cost-effective for mass production. The process involves pasteurizing the milk by heating and rapidly cooling it to eliminate harmful bacteria—an essential step in ensuring food safety.
While cow milk dominates, other sources like goat and buffalo milk are gaining momentum. These alternatives are often perceived as healthier or more sustainable, appealing to niche markets such as lactose-sensitive consumers and premium product buyers.
B2B is the Fastest Growing Channel
The market is segmented based on distribution into hypermarkets/supermarkets, specialty stores, business-to-business (B2B), and others. Surprisingly, the B2B channel emerged as the top revenue generator in 2020, driven by an increasing number of partnerships with fast-food chains, restaurants, hotels, and online food delivery services.
The surge in Quick Service Restaurants (QSRs), coupled with the rising trend of food aggregation platforms like Zomato, Swiggy, Uber Eats, and Deliveroo, has propelled cheese demand in the B2B sector. As these platforms expand their reach, so does the demand for consistent, high-quality, and versatile cheese products that can be scaled across menus.
Retail outlets like supermarkets and specialty stores continue to serve household consumers, especially as home cooking and DIY gourmet experiences become popular post-pandemic. Yet, the real momentum is seen in commercial kitchens, where cheese is no longer just an ingredient but a core value-add to menus.
Key Players and Strategic Moves
The global cheese market is highly competitive, with key players constantly innovating to retain their edge. According to UnivDatos, major companies in the space include:
- Nestlé
- Lactalis
- Danone
- Fonterra
- Freisland Campina
- Dairy Farmers of America
- Arla Foods
- Yili Group
- Saputo Inc
- Mengniu Dairy
These industry leaders are investing heavily in product innovation, sustainable packaging, and geographic expansion. Launching novel cheese variants, experimenting with plant-based alternatives, and leveraging AI-driven manufacturing processes are just some strategies employed to meet the rising global demand and environmental expectations.
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Future Outlook
The cheese market is evolving beyond simple food consumption-it is now intertwined with health trends, food tech innovations, and lifestyle shifts. As consumers look for high-protein, low-carb, keto-friendly options, cheese fits in naturally. There is also a rising trend of 3D-printed cheeses, snackable cheese portions, and non-dairy cheese products gaining traction in retail and foodservice alike.
Moreover, regionalization of flavors, clean label products, and functional cheeses infused with probiotics or fortified ingredients are expected to open new avenues. The expansion of cheese consumption in emerging economies, especially in Asia, Latin America, and Africa, indicates a promising runway for future growth.
Conclusion
Cheese has proven it’s more than just a comfort food-it's a dynamic, evolving industry with multiple growth engines. Whether through traditional culinary usage or as part of the global fast-food phenomenon, cheese continues to adapt, expand, and appeal to new audiences.
With Europe holding its ground, and the Asia-Pacific region ramping up consumption, the cheese market is entering a phase of global harmonization and innovation. For manufacturers, suppliers, and investors, understanding these shifts and tapping into the right segments-be it product variety, milk source, or distribution channel-will be key to long-term profitability.
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