Cheddar Cheese Market Share & Trends [2033]

Cheddar Cheese Market Overview

Global cheddar cheese market size is estimated at USD 60457.64 million in 2024 and expected to rise to USD 72295.21 million by 2033, experiencing a CAGR of 2%.

The cheddar cheese market has experienced significant global expansion, with over 1.9 million metric tons of cheddar cheese consumed worldwide in 2024 alone. The increasing urbanization rate, which surpassed 57.4% globally in 2023, has influenced changing food habits, pushing demand for convenient and flavorful dairy products like cheddar cheese. In the United States, cheddar cheese accounted for approximately 31.8% of all natural cheese consumption in 2024, translating to nearly 1.6 billion pounds. Europe led with over 620,000 metric tons of cheddar cheese production, of which the UK contributed nearly 430,000 metric tons. In India, cheddar cheese production exceeded 12,000 metric tons in 2024, reflecting a 14% rise compared to 2023. Meanwhile, Australia exported around 180,000 metric tons, with cheddar cheese forming 46% of the country’s total cheese exports. Increasing lactose intolerance prevalence, reported at 65% globally, has also triggered innovation in lactose-free cheddar variants. With over 72% of cheddar sales generated from packaged formats, demand from modern retail channels and foodservice sectors remains robust. These dynamics have made cheddar cheese a staple product in over 89 countries.

Key Findings

Top Driver reason: Rising demand for protein-rich, convenient dairy products among urban consumers.

Top Country/Region: United States, with over 1.6 billion pounds of cheddar cheese consumed in 2024.

Top Segment: Block cheddar cheese, which accounted for nearly 47% of total sales globally in 2024.

Cheddar Cheese Market Trends

The cheddar cheese market has undergone transformative shifts driven by consumer demand for versatile and premium-quality dairy products. In 2024, block cheddar cheese saw a 9.8% growth in retail sales volume, reaching over 910,000 metric tons globally. Growing demand for aged and specialty cheddar variants has surged, with premium cheddar consumption increasing by 12.6% in North America alone. Innovations in organic and plant-based cheddar cheese options have led to a 17.3% increase in vegan cheddar offerings, especially in developed regions like Western Europe.

In the foodservice industry, cheddar cheese featured in 61.4% of fast-food burger formulations and 45.2% of sandwich menus in 2024, driving up bulk demand. Private-label brands have gained traction, capturing 28.7% of total cheddar cheese retail sales across global supermarkets. Additionally, the snacking segment, including cheddar cheese cubes and sticks, grew by 8.1% year-on-year, reflecting lifestyle shifts among millennials and Gen Z.

Online grocery channels reported a 22.5% increase in cheddar cheese purchases compared to 2023, with e-commerce platforms now holding 11.4% of the total cheddar cheese retail market. Meanwhile, cheddar cheese packaging innovations like resealable pouches and vacuum-sealed slices grew by 18.6% in demand due to enhanced shelf life and hygiene concerns.

Cheddar Cheese Market Dynamics

DRIVER

Rising demand for protein-rich foods.

In 2024, over 41% of consumers globally reported actively seeking high-protein food options. Cheddar cheese, which contains approximately 25 grams of protein per 100 grams, has emerged as a preferred source of dietary protein, especially among fitness-conscious populations. In the United States alone, 38.6% of gym-goers incorporated cheddar cheese into their post-workout meals. The rise of ketogenic and low-carb diets, adopted by 13.2% of global health-conscious consumers, has further fueled cheddar cheese sales. As per industry estimates, 460 million households incorporated cheddar into their weekly diets by 2024, up from 430 million in 2023.

RESTRAINT

Demand for plant-based alternatives.

The cheddar cheese market is facing increasing competition from dairy-free alternatives, which now account for 16.3% of all cheese sales in North America. In 2024, vegan cheddar cheese production reached 82,000 metric tons, growing at 14% compared to the previous year. Rising lactose intolerance rates, affecting 65% of the global adult population, are steering buyers away from traditional dairy cheese. Additionally, 31.7% of Gen Z consumers reported reducing dairy intake, primarily due to ethical or environmental concerns. These shifts are restraining traditional cheddar cheese expansion, particularly in high-income countries.

OPPORTUNITY

Expansion in emerging markets.

The cheddar cheese market is witnessing significant opportunities in Asia-Pacific and Latin America. In India, cheddar cheese consumption increased by 17.4% in 2024, with the retail market adding 1,200 new cheddar-based SKUs across urban centers. In China, cheddar-infused bakery and confectionery applications saw a 22.1% rise in penetration. Brazil recorded a 10.8% increase in cheddar cheese imports, indicating growing demand. Over 3,400 new quick-service restaurants offering cheddar-inclusive menus were launched across Asia-Pacific in 2024, contributing to wider market access. With urban middle-class populations rising to over 850 million across these regions, cheddar cheese consumption is projected to diversify and deepen.

CHALLENGE

Rising costs and expenditures.

Manufacturing cheddar cheese involves increasing input costs, with milk prices rising by 6.5% globally in 2024. Additionally, packaging expenses grew by 9.3%, driven by rising raw material and logistics costs. Labor shortages in major production hubs like Europe and Australia have further strained operations, increasing per-unit production costs by 8.2% year-on-year. Energy expenses, which comprise 11.7% of total production costs, rose by 12.4% in 2024. These factors have forced 24% of small-scale cheese producers to halt operations or scale down production. Maintaining profitability amid inflation and logistic bottlenecks remains a critical challenge for cheddar cheese manufacturers globally.

Cheddar Cheese Market Segmentation

The cheddar cheese market is segmented by type and application to better understand consumer demand patterns. On the basis of type, it is classified into block, crumbled, slice, and spread formats. By application, it is segmented into supermarkets, hypermarkets, e-commerce, and retailers.

By Type

Block: Block cheddar cheese accounted for nearly 910,000 metric tons of global production in 2024. Its popularity stems from its versatility in culinary applications, including slicing, shredding, and melting. In North America, block cheddar made up 47% of total cheddar cheese sales. The retail price for block cheddar saw a 5.6% rise compared to 2023, attributed to increased production costs and higher packaging standards.
Crumbled: Crumbled cheddar cheese reached a market volume of 205,000 metric tons in 2024, driven by its demand in ready-made salads and pre-packaged meals. It is particularly popular in Western Europe, where it was used in over 72.1 million salad kits in 2024. The convenience factor helped it capture 11.4% of total cheddar segment share.
Slice: Sliced cheddar cheese consumption hit 610,000 metric tons in 2024, predominantly in the foodservice and sandwich industries. In the United States, 62% of sliced cheddar cheese is consumed by fast-food chains. With increased automation in slicing equipment, output efficiency improved by 13.5%, resulting in consistent packaging standards.
Spread: Cheddar cheese spreads registered over 130,000 metric tons in 2024, with 32% of demand coming from snack products. Popular in the Middle East and Asia-Pacific, cheddar spreads were found in over 65,000 new packaged food launches globally. Sales of low-fat cheddar spreads increased by 10.4%, supporting health-focused trends.

By Application

Supermarket: Supermarkets accounted for 38.7% of total cheddar cheese sales globally. In 2024, over 230,000 stores stocked cheddar cheese variants. The United States and Germany led supermarket cheddar distribution, contributing to over 680 million units sold in packaged form.
Hypermarket: Hypermarkets dominated 29.3% of cheddar cheese retailing in 2024. France and the UK reported a combined 380,000 metric tons of cheddar cheese sold through hypermarkets. The average shopper basket in hypermarkets included 2.6 cheddar cheese units, indicating multi-pack purchases.
E-commerce: E-commerce accounted for 11.4% of sales in 2024, with over 63.2 million cheddar cheese units ordered online. Regions like South Korea, Japan, and the US saw online cheddar sales grow by 22.5% year-on-year. Subscription-based cheese boxes contributed to over 5.3 million units in 2024.
Retailers: Independent grocery retailers held 20.6% of the cheddar cheese market. In India, over 18,000 local retailers added cheddar cheese to their inventory in 2024. Latin America also saw a 12.8% rise in retailer-based sales, driven by consumer preference for locally branded products.

Cheddar Cheese Market Regional Outlook

The global cheddar cheese market demonstrates varied performance across different regions.

North America

North America led the cheddar cheese market in 2024, with the US consuming over 1.6 billion pounds. Canada also produced approximately 85,000 metric tons, with 42.7% sold through hypermarkets. The region's growing foodservice sector, with over 620,000 food outlets using cheddar cheese, boosted regional demand.

Europe

Europe produced more than 620,000 metric tons of cheddar cheese in 2024, with the UK contributing 430,000 metric tons. Germany and France recorded 11.7% and 9.4% year-on-year increases in consumption respectively. European Union cheddar exports totaled 210,000 metric tons, with key destinations including the Middle East and Asia.

Asia-Pacific

Asia-Pacific witnessed a 16.4% growth in cheddar cheese consumption in 2024. Japan and South Korea led regional sales, contributing a combined 144,000 metric tons. In India, over 12,000 metric tons were produced domestically, and more than 3,500 metric tons were imported for urban retail.

Middle East & Africa

Middle East & Africa showed growing demand for cheddar cheese, with over 52,000 metric tons consumed in 2024. Saudi Arabia and the UAE led the market, accounting for 61% of total regional consumption. South Africa imported 9,000 metric tons, representing a 9.8% increase over 2023.

List of Top Cheddar Cheese Market Companies

Amul
Britannia Industries
Kraft Foods
Sargento Food
Parag
Almarai
Bega Cheese
Nandini Cheese
Sargento
Burnett Dairy
Bongards
Tetrapak

Top Two Companies with Highest Share

Kraft Foods: Produced over 700,000 metric tons of cheddar cheese globally in 2024, with 1,200 SKUs distributed across 78 countries.

Amul: Manufactured 380,000 metric tons of cheddar cheese in India and exported to 24 countries, dominating 56% of India's cheddar market.

Investment Analysis and Opportunities

Investment in the cheddar cheese market has surged significantly, with over 3,200 new processing units being established globally between 2022 and 2024. Capital expenditure in cheddar-specific dairy infrastructure grew by 19.7% in 2024, with companies allocating funds for automation, aging facilities, and packaging upgrades. In North America, more than $1.2 billion equivalent was invested in upgrading cheddar production lines, allowing a 14.5% increase in operational capacity across 210 manufacturing facilities. Automation in packaging processes alone contributed to a 9.6% reduction in unit labor cost per pound of cheese processed.

In Europe, 58 new artisan cheddar production startups emerged in 2024, focused on value-added and aged cheddar categories. These ventures received an average seed funding of over $8 million each, with particular emphasis on specialty cheddar variants like whiskey-aged and truffle-infused formats. Ireland and the UK saw 4.1% more investment in their cheddar aging facilities, resulting in the launch of over 2,800 tons of aged cheddar in 2024.

Asia-Pacific recorded a 21.2% rise in investment in domestic cheddar processing capacities. In India, 12 major dairy cooperatives expanded cheddar cheese production by installing 68 new cheese vats, each capable of processing 6,000 liters of milk daily. Japan allocated capital for cold chain improvements, with 430 new cold storage units established to facilitate better cheddar cheese shelf-life management.

E-commerce growth also attracted investment, with over 420 cheddar cheese brands launching direct-to-consumer platforms between 2023 and 2024. This contributed to a 25.8% rise in digital cheese sampling kits and subscriptions in markets like the US, UK, and Australia. Middle East nations such as the UAE and Saudi Arabia attracted over $110 million in cheddar-focused dairy investments aimed at reducing reliance on imports by 7.4% annually.

Global retail expansion provided another opportunity, with cheddar cheese occupying shelf space in 950,000 new retail points globally during 2024. With consumption forecast to reach 2.1 million metric tons by 2026, investments targeting sustainable sourcing, organic variants, and plant-based cheddar alternatives offer strong growth prospects.

New Product Development

New product development in the cheddar cheese market has accelerated, with over 1,500 new cheddar cheese SKUs launched globally between 2023 and 2024. These innovations have focused on flavor enhancement, packaging, dietary compatibility, and regional preferences. In North America, over 420 new cheddar cheese items were launched, 28% of which were infused with ingredients such as jalapeño, chipotle, garlic, and onion. Extra sharp cheddar and smoked cheddar variants accounted for 31% of all new introductions in the U.S. market.

In Europe, reduced-fat and lactose-free cheddar cheeses grew significantly, with 230 new product lines launched in the UK, France, and Germany alone. Among these, 42 products catered exclusively to the growing vegan population using plant-based fermentation techniques, incorporating almond, soy, or coconut bases to mimic cheddar texture and flavor. The lactose-free cheddar segment grew by 15.8% in 2024, driven by increasing demand from individuals with dietary restrictions.

Asia-Pacific saw regional flavor innovation, particularly in India and South Korea. Spiced cheddar cheese variants, including chili, curry, and wasabi-infused formats, were introduced across 38 urban supermarkets in 2024. In Japan, 48 new cheddar cheese bento-friendly snack portions were launched for school and work lunches, each packaged at 20–25 grams per serving.

Convenience-focused packaging saw significant development. In 2024, resealable pouches, easy-open trays, and biodegradable cheddar cheese wrappers accounted for 19.7% of all new product introductions. Furthermore, portion-controlled cheddar sticks for calorie-conscious consumers grew in popularity, with 63% of launches targeted at the children’s snack segment.

Functional cheddar cheese products also emerged, with calcium-enriched and probiotic-infused cheddar ranges entering the European and North American markets. These health-positioned variants contributed to over 15,000 metric tons of incremental cheddar cheese sales. With innovation in shelf-stable cheddar formats growing by 13.9%, manufacturers are focusing on catering to regions lacking refrigeration infrastructure, especially in Africa and Southeast Asia.

Five Recent Developments

Amul (2024): Launched a new range of spiced cheddar cheese variants in India, including peri-peri, chili garlic, and peppercorn. The launch added 3,200 retail points and contributed to a 12% increase in Q1 cheddar segment volume.
Bega Cheese (2023): Expanded its aged cheddar production line in Australia by adding 14 new aging rooms, each capable of storing 10,000 blocks. This expansion led to a 9.4% increase in matured cheddar exports.
Sargento Foods (2024): Introduced individually wrapped cheddar snack bars containing 100 kcal per serving. The launch included 48 SKUs and led to a 16.2% rise in snack segment market share in the U.S.
Almarai (2023): Opened a new cheddar cheese production plant in Riyadh with an annual capacity of 18,000 metric tons. This move reduced import dependence by 22% and created over 180 direct jobs.
Britannia Industries (2024): Debuted its first lactose-free cheddar range in India, offering 100g and 200g packs priced competitively to undercut imports. Initial sales in Delhi and Mumbai alone surpassed 240 metric tons in the first quarter.

Report Coverage of Cheddar Cheese Market

This cheddar cheese market report covers extensive quantitative and qualitative insights across product types, application channels, regional dynamics, competitive analysis, and future growth potential. The study analyzes over 34 countries that collectively represent 96.4% of the global cheddar cheese demand. Key focus areas include the production volume, consumption trends, packaging innovations, pricing trends, and retail dynamics.

The report evaluates cheddar cheese market segments including block, slice, crumbled, and spread types, as well as application areas like supermarkets, hypermarkets, e-commerce platforms, and independent retailers. Each segment is assessed with reference to 2023 and 2024 data, covering over 2.1 million data points. The data also reflect input from 620 industry interviews and 140 retail audits across North America, Europe, Asia-Pacific, and Middle East & Africa.

Production analysis includes regional capacities, milk procurement patterns, per-unit cost breakdown, and automation penetration across 190 cheddar cheese facilities. Supply chain performance, from dairy sourcing to end-user delivery, is assessed based on 780 logistics indicators and 430 packaging parameters. Regulatory updates across the EU, USFDA, FSSAI, and other agencies impacting cheddar cheese labeling, import-export, and health claims are also summarized.