Summer is a time for love and romance, as the classic song “Summer Nights” from the musical “Grease” reminds us. But for the cheese industry, it’s a time of growth and prosperity. The cheese category, valued at $68.1 billion, is seeing increased demand for premium artisanal cheese due to rising per capita income. Rogue Creamery, for example, has released its Championship-winning Rogue River Blue cheese, reflecting the flavors of Central Point, Ore. This handcrafted organic blue cheese was even crowned World Champion at the World Cheese Awards in 2019-2020.
According to a report by IBISWorld, cheese processors have experienced steady growth in recent years, with a compound annual growth rate (CAGR) of 3.5% from 2018-2023. Despite a slight slowdown to 0.5% growth expected from 2023-2028, the industry is projected to reach $69.7 billion by 2028. The COVID-19 pandemic also played a role in boosting cheese consumption and overall dairy revenue. As consumers traded up for higher-quality cheese products, revenue in the industry expanded at a CAGR of 3.5% to reach $68.1 billion.
In the natural cheese segment, dollar sales reached $14.6 billion, with chunk cheese showing significant growth at 5.7% year-over-year. However, other segments like shreds and snack cheese saw declines in sales. Despite fluctuations in herd sizes, the production of fluid milk has remained steady since 2014. Interestingly, more fluid milk is being sold to butter, fromage, and cheese producers, indicating a shift in the dairy industry towards higher-value products.
One of the key drivers of growth in the cheese industry is innovation. Cheese producers are incorporating blends, developing reduced-fat options, and implementing sustainable packaging to cater to consumer preferences. For example, Kraft’s “Mexican Four Cheese” blend has been popular among consumers looking for cheese for Mexican-inspired dishes. As market saturation increases, cheese producers will need to focus on creating unique products, flavors, and packaging to attract consumers.
Quick-service restaurants are also expanding their menu options to include cheese-centric dishes like Mac & Cheese and dairy-free pizza. Domino’s Pizza introduced Mac & Cheese to its menu, while Daiya Foods launched a new dairy-free pizza line featuring reformulated cheeses made from oat cream blend. These innovations cater to the growing demand for cheese-based dishes in the food industry.
In conclusion, the cheese industry is poised for continued growth and success, driven by consumer demand for premium artisanal cheeses and innovative products. With a focus on quality, sustainability, and unique flavors, cheese producers are well-positioned to meet the evolving needs of consumers in the years to come.