Australia Cottage Cheese Market Report and Forecast 2024-2032

Australia Cottage Cheese Market Outlook

The Australia cottage cheese market size reached USD 208.66 million in 2023. The market is expected to grow at a CAGR of 3.57% between 2024 and 2032, reaching almost USD 287.37 million by 2032.

Key Takeaways:

• The Australian Department of Agriculture, Fisheries and Forestry identifies dairy as a critical sector within the nation's rural industry. In the 2022-23 financial year, dairy production reached 8.8 billion litres, employing an estimated 33,500 individuals. Furthermore, the industry generated a substantial farm gate value of USD 6.1 billion in the same period.

• According to USDA, following a period of decline, Australia's milk production is expected to exhibit renewed growth in 2024. Production is expected to witness a 0.6% increase, reaching 8.50 million metric tons (MMT) compared to 2023 stabilized production of approximately 8.45 MMT. This upward trend signifies a positive shift for the Australian dairy industry.

• Further, Australia's processed milk industry exhibits a strong focus on cheese production. This trend is expected to continue, with production expected to reach 445,000 metric tons (MT) in 2024. This figure represents a significant portion of total fluid milk production, with cheese production utilizing an estimated 42% of Australia's annual milk output. This highlights cheese as the dominant application for Australia's dairy production.

Evolving consumer preferences drive Australia cottage cheese market which include focus on organic, unprocessed, and clean label products

The Australia cottage cheese industry is witnessing a surge in "clean label" claims. These claims emphasize the absence of additives, preservatives, and artificial flavours and colourings. This trend has been steadily gaining momentum in recent years, reflected in a growing number of new cheese products boasting clean label attributes.

Australia is a prominent exporter of dairy products, consistently directing around 35% of its milk production to international markets. In 2018-19, this export activity generated a substantial revenue of USD 3.2 billion. Notably, majority of these exports comprise value-added products with extended shelf life or unique qualities, such as cheese, butter, ultra-heat-treated (UHT) milk, and milk powders.

Australia cottage cheese market is experiencing a shift towards unprocessed varieties, driven by consumer preferences for products with natural ingredients. This trend aligns with the growing demand for "clean label" cheeses, which are free of additives, preservatives, artificial flavors, and coloring. Notably, clean label claims dominated new cheese product launches in 2020, occupying three of the top four positions.

Further, the Australian cheese market is characterized by the dominance of supermarkets and hypermarkets. This is primarily driven by the convenience these stores offer consumers, who can access a wide variety of cheese products under one roof. Major players in the Australian supermarket landscape include Coles, Woolworths, ALDI, Costco, Drakes, Friendly Grocer, Foodland, FoodWorks, Harris Farm Markets, and IGA.

Market Segmentation

Australia Cottage Cheese Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Nature

• Organic

• Conventional

Market Breakup by Source

• Cow

• Buffalo

• Goat

• Others

Market Breakup by Type

• Regular Cottage Cheese

• Fat-Free Cottage Cheese

• Low-Fat or Reduced Fat Cottage Cheese

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets

• Convenience Stores

• Online

• Others

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Australian Capital Territory

• Western Australia

• Others

The Australia cottage cheese market key players are Regal Cream Products Pty Ltd. (Bulla), Barambah Organics Operations Pty Ltd., Cottage Cheese Farm, Regal Cream Products Pty Ltd., and Brancourt Dairy Australia Pty Ltd., among others.

Key Highlights of the Report