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Natural Cheese Market

ID: MRFR/FnB/3458-CR
110 Pages
Pradeep Nandi
October 2022

Natural Cheese Market Research Report By Product Type (Cheddar Cheese, Mozzarella Cheese, Swiss Cheese, Blue Cheese, Goat Cheese), By Milk Source (Cow Milk, Goat Milk, Sheep Milk), By Form (Sliced, Shredded, Block, Cubes, Spreadable), By Distribution Channel (Supermarkets, Online Retail, Specialty Stores, Convenience Stores) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

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Natural Cheese Market Summary

As per MRFR analysis, the Natural Cheese Market Size was estimated at 63.38 USD Billion in 2024. The Natural Cheese industry is projected to grow from 65.25 USD Billion in 2025 to 87.26 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 2.95 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Natural Cheese Market is experiencing a dynamic shift towards health-conscious and innovative products.

  • Health consciousness is driving consumers towards natural cheese options that are perceived as healthier alternatives.
  • Artisanal and local cheese products are gaining traction, particularly in North America, as consumers seek unique flavors and quality.
  • Mozzarella cheese is emerging as the fastest-growing segment, reflecting changing culinary preferences and increased demand for versatile cheese options.
  • Rising demand for natural ingredients and sustainability concerns are key drivers propelling growth in both the Cheddar and Goat Milk segments.

Market Size & Forecast

2024 Market Size 63.38 (USD Billion)
2035 Market Size 87.26 (USD Billion)
CAGR (2025 - 2035) 2.95%

Major Players

Dairy Farmers of America (US), Lactalis (FR), Fonterra (NZ), Saputo (CA), Kraft Heinz (US), Arla Foods (DK), Bel Group (FR), Murray Goulburn (AU), FrieslandCampina (NL)

Natural Cheese Market Trends

The Natural Cheese Market is currently experiencing a dynamic evolution, driven by shifting consumer preferences towards healthier and more natural food options. This market appears to be influenced by a growing awareness of the nutritional benefits associated with natural cheese, such as its high protein content and absence of artificial additives. As consumers increasingly seek transparency in food sourcing, the demand for artisanal and locally produced varieties seems to be on the rise. Furthermore, the trend towards plant-based diets, while significant, has not diminished the appeal of natural cheese, which continues to hold a prominent place in culinary traditions worldwide. In addition, the Natural Cheese Market is likely to benefit from innovations in product offerings, including lactose-free and reduced-fat options, catering to diverse dietary needs. The expansion of online retail channels also appears to facilitate greater accessibility for consumers, allowing them to explore a wider range of products from various regions. As the market adapts to these evolving trends, it may witness a blend of traditional practices with modern consumer demands, creating a unique landscape that reflects both heritage and innovation.

Health Consciousness

The Natural Cheese Market is increasingly shaped by consumers' focus on health and wellness. As individuals become more aware of dietary choices, the preference for natural and minimally processed foods is evident. This trend suggests a shift towards products that offer nutritional benefits without artificial ingredients.

Artisanal and Local Products

There is a noticeable inclination towards artisanal and locally sourced natural cheese. Consumers appear to value the craftsmanship and unique flavors associated with small-scale producers. This trend indicates a desire for authenticity and a connection to local food systems.

Product Innovation

The Natural Cheese Market is witnessing a wave of innovation, with new product lines emerging to meet diverse consumer needs. Options such as lactose-free and reduced-fat varieties are gaining traction, reflecting a response to dietary restrictions and preferences.

Natural Cheese Market Drivers

Expansion of Distribution Channels

The Natural Cheese Market is benefiting from the expansion of distribution channels, which enhances product accessibility for consumers. Retailers are increasingly recognizing the demand for natural cheese and are diversifying their offerings to include a wider range of products. This includes the growth of online grocery shopping, which has become a vital channel for cheese sales. Recent statistics indicate that e-commerce sales of cheese have surged, with online platforms accounting for a growing percentage of total cheese sales. This trend not only facilitates consumer access to various natural cheese options but also allows producers to reach a broader audience, thereby driving growth within the Natural Cheese Market.

Sustainability and Ethical Sourcing

The Natural Cheese Market is increasingly shaped by consumer preferences for sustainability and ethical sourcing practices. As awareness of environmental issues grows, consumers are more inclined to support brands that prioritize sustainable production methods and responsible sourcing of ingredients. This trend is prompting cheese producers to adopt eco-friendly practices, such as using organic milk and reducing carbon footprints. Industry expert's suggest that products labeled as sustainably sourced are gaining traction, with consumers willing to pay a premium for such offerings. This shift towards sustainability not only aligns with consumer values but also positions brands favorably within the competitive landscape of the Natural Cheese Market.

Rising Demand for Natural Ingredients

The Natural Cheese Market experiences a notable surge in demand for products made from natural ingredients. Consumers increasingly prefer cheese that is free from artificial additives and preservatives, reflecting a broader trend towards clean label products. This shift is driven by heightened awareness of health and wellness, as well as a desire for transparency in food sourcing. According to recent data, the market for natural cheese is projected to grow at a compound annual growth rate of approximately 5.5% over the next five years. This growth indicates a robust consumer preference for natural cheese, which is perceived as healthier and more authentic compared to processed alternatives. As a result, manufacturers are adapting their offerings to meet this demand, thereby enhancing their market presence in the Natural Cheese Market.

Culinary Trends and Gourmet Experiences

The Natural Cheese Market is significantly influenced by evolving culinary trends that emphasize gourmet experiences. Consumers are increasingly seeking high-quality, artisanal cheeses that offer unique flavors and textures. This trend is evident in the growing popularity of cheese boards and gourmet cheese pairings in restaurants and at home. Market analysis indicates that premium cheese segments, including specialty and artisanal varieties, are experiencing robust growth, with sales projected to rise by over 6% annually. This inclination towards gourmet cheese not only enhances consumer experiences but also encourages producers to focus on quality and craftsmanship, thereby elevating the overall standards within the Natural Cheese Market.

Increased Popularity of Plant-Based Diets

The Natural Cheese Market is witnessing a significant impact from the rising popularity of plant-based diets. As more consumers adopt vegetarian and vegan lifestyles, there is a growing interest in dairy alternatives, including plant-based cheeses. This trend is not only reshaping consumer preferences but also prompting traditional cheese producers to innovate and diversify their product lines. Market data suggests that the plant-based cheese segment is expected to expand rapidly, potentially capturing a substantial share of the overall cheese market. This shift may lead to increased competition within the Natural Cheese Market, as companies strive to balance traditional cheese offerings with new, plant-based alternatives that cater to evolving dietary choices.

Market Segment Insights

Natural Cheese Market Product Type Insights   

The Natural Cheese Market, valued at 61.56 USD Billion in 2023, encompasses a variety of product types that cater to the diverse preferences of consumers worldwide. Among these, Cheddar Cheese stands out with a valuation of 24.5 USD Billion in 2023, representing a significant portion of the overall market and demonstrating its major role in consumption patterns. The popularity of Cheddar Cheese is driven by its versatility in cooking and snacking, which contributes to its majority holding in the sector.

Following closely is Mozzarella Cheese, valued at 18.0 USD Billion, which has gained traction largely due to the rising demand for pizza and Italian cuisine, marking its significance in the Natural Cheese Market.Meanwhile, Swiss Cheese, valued at 10.0 USD Billion, has established itself through its unique flavor and texture that appeals to health-conscious consumers, driven by the trend towards natural and organic cheese options. Blue Cheese, with a valuation of 5.0 USD Billion, caters to a niche market of gourmet food lovers who appreciate its distinct taste, contributing to its notable presence in specialty stores and fine dining establishments.

Goat Cheese, valued at 4.06 USD Billion, offers an alternative for lactose-sensitive individuals and has carved out a loyal following due to its perceived health benefits and gourmet applications.This segmentation within the Natural Cheese Market illustrates the varied preferences and culinary uses of cheese, highlighting both dominant and specialized products that shape industry growth and innovation.

Natural Cheese Market Milk Source Insights   

The Natural Cheese Market, valued at 61.56 USD Billion in 2023, is witnessing notable growth, particularly in the Milk Source segment, comprising Cow Milk, Goat Milk, and Sheep Milk. Cow Milk cheese, widely appreciated for its versatility and creamy texture, accounts for a significant share of the market due to its widespread availability and consumer preference. Goat Milk cheese is gaining traction for its unique flavor profile and perceived health benefits, appealing to niche markets focusing on digestive wellness.

Meanwhile, Sheep Milk cheese, often considered a delicacy, offers distinct flavor characteristics, contributing to its growing popularity among gourmet consumers.The market is driven by increasing cheese consumption, trends favoring natural and artisanal products, and rising awareness of the nutritional benefits associated with cheese. However, challenges such as fluctuating milk prices and changing dietary preferences pose potential hurdles. Overall, the dynamic landscape of the Natural Cheese Market showcases a promising future, driven by diverse consumer demands and the intrinsic qualities of various milk sources.

Natural Cheese Market Form Insights   

The Natural Cheese Market, valued at 61.56 billion USD in 2023, presents diverse offerings through its Form segment, which comprises various types such as Sliced, Shredded, Block, Cubes, and Spreadable cheese. This segmentation plays a crucial role in catering to consumer preferences and usage occasions, with Sliced cheese often leading as a convenient option for sandwiches and burgers, while Shredded cheese is favored for culinary applications in dishes like pizzas and casseroles.

Block cheese retains its strength among consumers who prefer customization in preparation, and Spreadable cheese is gaining traction for its ease of use in snacks and appetizers.The versatility of these forms drives consistent demand, creating opportunities for growth within the market. Moreover, these forms are aligned with current trends emphasizing convenience and versatility in meal preparation, contributing significantly to the Natural Cheese Market revenue. As the market evolves, manufacturers focus on innovative flavors and health-conscious formulations, appealing to a wider audience.

The interplay of product variety and shifts in consumer behavior underlines the importance of the Form segment in shaping the Natural Cheese Market data and statistics.

Natural Cheese Market Distribution Channel Insights   

The Natural Cheese Market is witnessing significant growth across various distribution channels, contributing to the market's overall revenue of 61.56 USD Billion in 2023. Supermarkets stand out as a dominant distribution channel, offering extensive product variety and convenience to consumers. Online retail is rapidly gaining traction, driven by the increasing adoption of e-commerce platforms and changes in consumer shopping habits, presenting new opportunities for market expansion.

Specialty stores also play a crucial role, catering to niche markets with unique or artisanal cheese offerings, which appeal to gourmet consumers looking for specific tastes.Convenience stores, while smaller in scale, are indispensable for last-minute purchases, serving a significant portion of busy consumers. Each of these channels contributes to the diverse landscape of Natural Cheese Market segmentation, reflecting changing consumer preferences and shopping behaviors. With the ongoing trends of convenience and personalized shopping experiences, all distribution avenues present unique growth drivers and opportunities for participants in the Natural Cheese industry.

Get more detailed insights about Natural Cheese Market

Regional Insights

North America : Market Leader in Natural Cheese Market

North America is the largest market for natural cheese, holding approximately 40% of the global share. The region benefits from a strong dairy farming infrastructure, increasing consumer demand for natural and organic products, and favorable regulations supporting dairy production. The rise in health consciousness among consumers is also driving demand for natural cheese, as it is perceived as a healthier alternative to processed cheese. The United States and Canada are the leading countries in this market, with the U.S. accounting for a significant portion of the production. Key players such as Dairy Farmers of America and Kraft Heinz dominate the landscape, leveraging advanced technologies and sustainable practices to enhance production efficiency. The competitive environment is characterized by innovation and a focus on quality, with companies continuously expanding their product lines to meet diverse consumer preferences.

Europe : Growing Demand for Artisan Cheese

Europe is the second-largest market for natural cheese, accounting for approximately 30% of the global market share. The region is witnessing a growing trend towards artisanal and specialty cheeses, driven by consumer preferences for high-quality, locally sourced products. Regulatory frameworks in the EU promote sustainable dairy farming practices, which further enhance the appeal of natural cheese among health-conscious consumers. Leading countries in this market include France, Germany, and Italy, known for their rich cheese-making traditions. Major players like Lactalis and Arla Foods are actively expanding their portfolios to include organic and specialty cheeses. The competitive landscape is marked by a blend of traditional cheese makers and modern dairy companies, all striving to innovate and cater to evolving consumer tastes. The emphasis on quality and authenticity is reshaping the market dynamics.

Asia-Pacific : Emerging Market with High Potential

Asia-Pacific is an emerging powerhouse in the natural cheese market, currently holding about 20% of the global share. The region is experiencing rapid growth in cheese consumption, driven by urbanization, changing dietary habits, and increasing disposable incomes. Countries like China and India are witnessing a surge in demand for cheese products, particularly among the younger population, who are increasingly adopting Western dietary trends. Regulatory support for dairy farming is also contributing to market growth. Key players in this region include Fonterra and Saputo, who are focusing on expanding their distribution networks and product offerings to cater to local tastes. The competitive landscape is evolving, with both international and local brands vying for market share. The emphasis on quality and innovation is crucial as companies seek to establish a strong foothold in this rapidly growing market.

Middle East and Africa : Untapped Market Opportunities

The Middle East and Africa region is an emerging market for natural cheese, currently holding about 10% of the global share. The growth is driven by increasing urbanization, a young population, and rising disposable incomes, leading to a shift in dietary preferences towards dairy products. Regulatory initiatives aimed at improving food safety and quality standards are also fostering market growth. Countries like South Africa and the UAE are at the forefront of this trend, with increasing imports of natural cheese products. The competitive landscape is characterized by a mix of local and international players, with companies like Murray Goulburn and FrieslandCampina expanding their presence in the region. The focus is on product innovation and catering to local tastes, as consumer awareness of cheese products continues to rise. The potential for growth in this sector is significant, with opportunities for both established brands and new entrants to capture market share.

Natural Cheese Market Regional Image

Key Players and Competitive Insights

The Natural Cheese Market is characterized by a vibrant landscape featuring a diverse array of players ranging from regional artisans to large-scale manufacturers. Various factors contribute to the dynamic competition, including the demand for innovative flavors and textures, shifts in consumer preferences towards healthier options, and the growing focus on sustainable production practices. Market participants continually seek to differentiate their offerings by investing in research and development, enhancing the quality of their products, and expanding distribution networks.

Additionally, the evolving trends around organic and natural ingredients bolster competition as brands strive to meet the increasing consumer awareness regarding food quality and health. This competitive environment is further intensified by the entry of new players and the strategic partnerships formed among established companies to capture a larger share of this thriving market.Saputo is a significant player in the Natural Cheese Market, boasting a robust presence in numerous regions worldwide. Known for its commitment to high-quality dairy products, Saputo emphasizes the use of premium ingredients and traditional cheese-making processes.

Its comprehensive portfolio includes a wide variety of natural cheeses that cater to both retail and food service sectors, bolstering its market footprint. A key strength of Saputo is its established distribution network, that allows the company to reach a broad customer base effectively. Furthermore, Saputo's engagement in sustainable practices enhances its brand reputation, appealing to environmentally conscious consumers.

The company's continuous investments in machinery and technology also enable it to improve production efficiencies while maintaining product quality, positioning Saputo as a leader in the competitive landscape of natural cheese.Danone is recognized for its influential role in the Natural Cheese Market, focusing on health-oriented and nutritious cheese products. The company emphasizes its expertise in dairy and its commitment to innovation, which manifests in its diverse offerings that include lighter, probiotic, and organic cheese variants. Danone has carved a niche by targeting health-conscious consumers and promoting products that align with a balanced diet and lifestyle.

One of its strengths lies in its strategic marketing initiatives that enhance brand visibility and product awareness, allowing consumers to understand the benefits of natural cheese better. Additionally, Danone's reach, underpinned by strong supply chain capabilities, ensures that its products are readily available across various markets. By fostering partnerships and collaborations within the food industry, Danone strengthens its competitive advantage while continually striving to meet evolving consumer demands in the natural cheese segment.

Key Companies in the Natural Cheese Market market include

Industry Developments

Recent developments in the Natural Cheese Market have showcased significant movements among key players such as Saputo, Danone, Dairy Farmers of America, and Lactalis, with a notable emphasis on sustainability and product innovation. Dairy Farmers of America recently expanded its footprint through strategic acquisitions aimed at enhancing its product offerings and market share. Meanwhile, Lactalis has announced a commitment to improving its environmental practices, which is becoming increasingly important in consumer purchasing decisions. Arla Foods is also innovating with new cheese varieties tailored to health-conscious consumers, reflecting the growing market demand for healthier natural cheese options.

In terms of market valuation, companies like Fonterra and Kraft Heinz have experienced a surge in their stock prices, primarily due to expanding international demand and successful product launches that cater to diverse consumer preferences. Furthermore, FrieslandCampina has invested in modernizing its production processes to boost efficiency and sustainability, aligning with trends. Overall, these movements are indicative of a dynamic market landscape that continues to evolve with consumer demands and competitive strategies among major players.

Future Outlook

Natural Cheese Market Future Outlook

The Natural Cheese Market is projected to grow at a 2.95% CAGR from 2024 to 2035, driven by increasing health consciousness, demand for organic products, and innovative cheese varieties.

New opportunities lie in:

  • Expansion into plant-based cheese alternatives
  • Development of premium artisanal cheese lines
  • Implementation of direct-to-consumer online sales platforms

By 2035, the Natural Cheese Market is expected to achieve robust growth and diversification.

Market Segmentation

Natural Cheese Market Form Outlook

  • Sliced
  • Shredded
  • Block
  • Cubes
  • Spreadable

Natural Cheese Market Type Outlook

  • Cheddar Cheese
  • Mozzarella Cheese
  • Swiss Cheese
  • Blue Cheese
  • Goat Cheese

Natural Cheese Market Milk Source Outlook

  • Cow Milk
  • Goat Milk
  • Sheep Milk

Natural Cheese Market Distribution Channel Outlook

  • Supermarkets
  • Online Retail
  • Specialty Stores
  • Convenience Stores

Report Scope

MARKET SIZE 202463.38(USD Billion)
MARKET SIZE 202565.25(USD Billion)
MARKET SIZE 203587.26(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)2.95% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesGrowing consumer preference for organic and artisanal products in the Natural Cheese Market.
Key Market DynamicsRising consumer preference for natural ingredients drives demand for unprocessed cheese varieties in the market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Pradeep Nandi
Senior Research Analyst

I have a bachelor's degree in mechanical engineering and an MBA. I have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. A firm believer in lifelong learning and sharing of knowledge. Having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. Introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest. 

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FAQs

What is the current valuation of the Natural Cheese Market as of 2024?

The Natural Cheese Market was valued at 63.38 USD Billion in 2024.

What is the projected market valuation for the Natural Cheese Market in 2035?

The market is projected to reach 87.26 USD Billion by 2035.

What is the expected CAGR for the Natural Cheese Market during the forecast period 2025 - 2035?

The expected CAGR for the Natural Cheese Market during 2025 - 2035 is 2.95%.

Which type of cheese segment had the highest valuation in 2024?

In 2024, Cheddar Cheese led the type segment with a valuation of 20.0 USD Billion.

How does the valuation of Goat Cheese compare between 2024 and projected figures for 2035?

Goat Cheese was valued at 10.38 USD Billion in 2024 and is projected to reach 17.26 USD Billion by 2035.

What are the leading distribution channels for Natural Cheese in 2024?

Supermarkets dominated the distribution channels in 2024, with a valuation of 30.0 USD Billion.

What is the valuation of the Sliced cheese segment in 2024?

The Sliced cheese segment was valued at 12.67 USD Billion in 2024.

Which company is a key player in the Natural Cheese Market?

Dairy Farmers of America is one of the key players in the Natural Cheese Market.

What is the projected growth for the Cow Milk segment from 2024 to 2035?

The Cow Milk segment was valued at 40.0 USD Billion in 2024 and is projected to grow to 55.0 USD Billion by 2035.

How does the valuation of online retail for Natural Cheese compare to other distribution channels in 2024?

Online retail was valued at 10.0 USD Billion in 2024, making it one of the smaller distribution channels compared to supermarkets.

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