Cheese Procurement Intelligence Report 2025-2030

Cheese Demand Overview

The growing demand boosting cheese sourcing is driven by increased population, urbanization, improving disposable incomes, and changes in consumer preferences toward convenience foods. In addition, the versatility and long shelf life of cheese have continued to speed up its increased use in other culinary applications. The European market dominates cheese production and consumption, led by countries such as France, Italy, Germany, and the United Kingdom. However, as per the cheese procurement report, there has been also significant growth seen in regions like North America, Asia-Pacific, and Latin America with rising cheese incorporation in emerging economies.  

Moreover, according to the cheese procurement report, higher investments in cattle grazing and practices, cheese-making advancements, and production facility development are projected to aid cheese availability from the supply side. Milk prices may affect cheese costs due to raw material market volatilities in the cheese market and the concerns raised about livestock farming and environmental issues.  

Cheese Cost Structure

As per the cheese procurement report, the cost modeling is primarily affected by raw material costs, labor, energy, and transport. Since milk remains the principal raw material in cheese production, fluctuations in its price reflect directly on the overall pricing strategies. 

As per the cheese procurement report analysis, processing costs are also high since cheese production is a process of heating, refining, and even deodorizing the fat in order to produce the quality. The energy involved in this process adds to the cost. The labor cost can also be expensive in countries with high demand for cheese since the production of cheese is labor intensive. considered in the cheese procurement market report. 

Transport and logistics expenses in the cheese procurement market form an important cost factor, especially for cheese transported abroad. As fuel prices have risen globally, coupled with the impact of supply chain disruptions, this has resulted in increased prices for cheese. Moreover, transportation costs often translate to a cost for the storage and packaging of the final product.

Cheese Pricing Trends

Prices of cheese are influenced by global supply and demand, raw material cost, and competitive market forces. Recent pricing trends that are considered in the cheese procurement report, include rising milk prices, labor shortages, and increasing energy costs. On the premium market side, growing demand for specialty and organic cheeses has pushed prices in an upward trajectory. 

Energy takes a sizeable part of cheese sourcing including milk pasteurization, processing curd, aging, and storage. Latest price hikes caused by geopolitical tensions coupled with global changes in the economies have added fuel to the increased cost for manufacturers.  

The increasing consumer preference for premium, specialty, and organic cheeses has increased the prices in niche markets. Most of these varieties are expensive because of higher production costs in terms of raw material requirements, longer aging periods, and stricter quality standards. 

Moreover, disruptions in supply chains, caused by geopolitical conflicts, have  resulted in price surge, as per the cheese procurement report analysis. Technological advancements in dairy farming and processing, plus strategic investments in infrastructure, are expected to stabilize these prices over the long term. 

Cheese Procurement Best Practices

The best practices considered in the cheese procurement report are acquiring a regular, quality supply of milk, and cost containment. Long-term contracts with raw material suppliers from cooperatives protect against price spikes of raw materials. Diversified suppliers for the supply chain are also strategically sourced to handle regional disruptions to the supply chain.

Efficient logistics and storage are essential for maintaining cheese quality. Digital tools and predictive analytics are increasingly employed for demand forecasting and inventory management, enhancing operational efficiency. Sustainability has become a focal point, with buyers prioritizing suppliers adhering to environmentally friendly and ethical practices in dairy production.

Key Players in the Cheese Industry

Recent Developments in the Cheese Industry

• In March 2024, Foods, one of the world’s leading mozzarella producers, announced its largest ever investment into the UK with highly advanced production technology at the Taw Valley dairy in southwestern England.
• In October 2024, Lactalis Group launched a new line of plant-based cheese alternatives, targeting the growing vegan and flexitarian consumer base.
• In July 2023, Fonterra invested in advanced processing technologies to increase the yield and quality of its cheese products, particularly for export markets.
• In February 2023, Nestlé introduced a range of fortified cheese products in Southeast Asia, addressing nutritional deficiencies in emerging markets.