Natural Cheese Market Size (2024 – 2030)

The Natural Cheese Market was valued at USD 190.2 billion in 2023. Over the forecast period of 2024-2030, it is projected to reach USD 264.08 billion by 2030, growing at a CAGR of 4.8%.

Cheese, a dairy product derived from milk, is created through the coagulation of milk protein casein and comes in an extensive array of textures, flavors, and forms. It consists of proteins and fats from milk sourced from buffalo, cows, sheep, or goats. Various cheese types are produced globally, with their textures, styles, and flavors influenced by factors such as the milk's origin, the animal's diet, and whether the milk has been pasteurized. There is a growing consumer preference for traditional cheese due to its butter fat content, particularly from grass-fed cows' milk, which is high in A2 beta-casein and low in A1 beta-casein. This trend is anticipated to drive the growth of the natural cheese market. Nevertheless, the limited availability of natural cheese, particularly in grocery stores, remains a challenge that may hinder its widespread adoption to some degree.

Key Market Insights:

Europe, being the largest producer of natural cheese, adheres to traditional practices that appeal to consumers and have led to a surge in sales across the region. This increasing health-conscious mindset is shaping purchasing behaviors, thereby driving the global growth of the natural cheese market. In response, manufacturers and retailers are expanding their natural cheese offerings to capitalize on this trend and address the evolving preferences of health-aware consumers.

 France, renowned for its cheese heritage, boasts an impressive range of over 400 to 1,000 distinct cheese varieties. Europe remains a prime location for the natural cheese market.

 New Mexico produces 956 million pounds of cheese annually, equating to 452.4 pounds per capita, while Vermont produces 222 pounds per capita each year.

Rise in Consumer’s Demand for Healthy and Natural Foods drives market growth.

The increasing consumer demand for healthy and natural foods is anticipated to be the primary driver of the global natural cheese market. As consumers place higher importance on minimally processed foods free from artificial ingredients, there is a noticeable shift towards natural cheese, which is perceived as more wholesome and nutritious. This trend is reflected in the growing popularity of organic cheese and raw cheese produced using traditional methods. Several factors contribute to this rising demand for healthy and natural cheese: consumers are becoming more aware of cheese’s health benefits, including its high protein content, calcium, and essential vitamins. They are actively seeking cheese options that align with their health objectives and dietary preferences, which is fostering growth in the natural cheese market. Additionally, consumers are increasingly demanding transparency in ingredient labeling and favor products made with natural ingredients and minimal processing. In parallel, in many countries where natural food consumption has surged, the demand for natural cheese has also experienced significant growth. This is largely due to consumers' preferences for products free from synthetic additives and produced through environmentally friendly practices.

Natural Cheese Market Restraints and Challenges:

The prevalence of obesity has escalated markedly in recent years, particularly among children. Obesity is linked to a range of serious health issues, including heart disease, diabetes, and certain types of cancer. Additionally, research indicates that consuming cheddar natural cheese may heighten the risk of breast cancer due to its role in increasing the production of galactose from lactose.

Natural Cheese Market Opportunities:

Research and Development creates more opportunities in the market.

A strong emphasis on research and development, coupled with technological advancements, has driven innovations in natural cheese flavors, capturing consumer interest worldwide. Furthermore, both the retail and food service sectors are experiencing a surge of innovation in natural cheese flavors, presenting significant opportunities for market expansion. The growing consumer enthusiasm for exploring new natural cheese varieties in their daily diets is also contributing to the expansion of the global natural cheese market.

The increasing popularity of Natural Cheese Tourism creates opportunities.

The rising popularity of natural cheese tourism in emerging economies represents a significant growth opportunity for natural cheese manufacturers during the forecast period. As these economies undergo increased urbanization, shifting consumer preferences, and greater awareness of healthier food options, there is a notable move towards natural products, including cheese. By providing direct experiences of the cheese-making process, this trend fosters a deeper appreciation for artisanal and specialty cheeses, highlighting their craftsmanship, tradition, and quality. This enhanced appreciation often leads to a consumer preference for high-quality, unique cheeses, boosting the sales of premium varieties. Emerging economies offer untapped markets where natural cheese manufacturers can leverage the growing interest in healthier and environmentally friendly products. Additionally, rising disposable incomes in these regions enable consumers to prioritize premium food products, including naturally produced cheese, further stimulating demand and driving the growth of the natural cheese market.

NATURAL CHEESE MARKET REPORT COVERAGE:

Natural Cheese Market Segmentation: By Type

• Cheddar

• Mozzarella

• Parmesan

• American Cheese

The Cheddar segment dominated the global natural cheese market, holding the largest market share. Cheddar’s adaptability to various consumer preferences and its widespread use in dishes such as pasta, pizza, and salads ensure a substantial portion of regular consumption among cheese enthusiasts. This continued popularity supports the segment’s growth throughout the forecast period.

Conversely, the Mozzarella cheese segment is projected to experience rapid growth at a high CAGR, offering promising opportunities for natural cheese manufacturers globally. The rising popularity and increased consumer demand are expected to be key drivers of this segment’s expansion. Mozzarella’s versatility and adaptability make it a preferred choice not only in traditional dishes but also in contemporary culinary trends, including pizzas, salads, sandwiches, and various international cuisines. As consumers increasingly prioritize natural products for their health and environmental benefits, natural Mozzarella cheese is anticipated to see heightened demand during the forecast period. This versatility enhances Mozzarella’s appeal across a wide range of culinary applications, contributing significantly to its swift growth.

Natural Cheese Market Segmentation: By Distribution Channel

• Supermarkets/Hypermarkets

• Convenience Stores

• Online Stores

• Specialist Stores

• Others

In 2023, the supermarket sector is anticipated to achieve the highest compound annual growth rate (CAGR) of 4%. Supermarkets are preferred for their extensive range of food products from various regions, effectively meeting diverse consumer preferences.

During the COVID-19 pandemic, convenience stores and traditional grocery stores did not experience substantial growth. Nonetheless, the pandemic exposed consumers to a wide array of international cuisines and cultures, leading stores to increase their offerings of packaged and processed foods to accommodate diverse tastes. As a result, these segments are expected to contribute to potential growth in the forecasted year, driven by rising consumer interest in exploring new flavors and the convenience of diverse food choices.

• North America

• Europe

• Asia Pacific

• South America

• Middle East & Africa

Europe leads the global natural cheese market with the largest market share and is expected to continue its growth during the forecast period. The region has witnessed increasing demand due to the introduction of rich-textured products and new offerings such as cream varieties and convenient packaging. Major natural cheese producers in Europe include Italy, Germany, Spain, and the Netherlands.

Additionally, growing consumer awareness regarding health, environmental impact, and animal welfare has driven demand for natural cheese across Europe. This rising demand is in line with the European Union's strict regulations, which ensure that natural cheeses adhere to specific standards related to farming practices, animal feed, and the absence of synthetic additives or pesticides.

In North America, the natural cheese market is the largest, accounting for over 26.2% of the market share. The region is expected to maintain its dominance and grow throughout the forecast period. The United States, a major producer of natural cheese, benefits significantly from Wisconsin, known as the cheese capital, which produces 3,467 million pounds of cheese annually (1,573 thousand metric tons), amounting to 588.3 pounds per capita. Wisconsin alone produces 26% of the nation's cheese and has 1,300 licensed cheese makers, more than any otherU.S. state. Idaho produces 526.8 pounds of cheese per capita, with a high demand for varieties like cheddar, mozzarella, cream cheese, and cottage cheese.

COVID-19 Pandemic: Impact Analysis

The global economic shutdowns caused by the COVID-19 pandemic led to decreased production and stagnation in the natural cheese market. Despite an increased demand for healthier foods and the incorporation of items like straw cereals into diets during the pandemic, which boosted interest in natural cheese as a healthier option, the overall market faced challenges. The lockdowns resulted in reduced production levels and disruptions in the supply chain, impacting the natural cheese market significantly.

Latest Trends/ Developments:

In August 2022, Bel Group and Lactalis Group announced their acquisition of Bel’s business operations, which included Royal Bel Leerdammer NL, Bel Italia, Bel Deutschland, and the Leerdammer brand along with all associated rights, as well as Bel Shostka Ukraine. Leerdammer is recognized as one of the most iconic cheese brands in Europe.

Key Players:

These are top 10 players in the Natural Cheese Market :-

1. Calabro Cheese Corporation

2. Brunkow Cheese Factory Parag Milk Foods

3. Beijing Sanyuan

4. Cady Cheese Factory

5. Hook’S Cheese Company

6. Mengniu Dairy