Table of Contents
Overview
New York, NY – May 30, 2025 – The Global Processed Cheese Market is growing steadily due to its convenience, long shelf life, and versatility in food applications. In 2024, the market was valued at USD 17.7 billion and is expected to reach USD 25.2 billion by 2034, growing at a CAGR of 3.6%.
In 2024, Cheddar Cheese solidified its leading position in the processed cheese market, securing a 36.4% share. Its popularity stems from a robust flavor, wide availability, and versatility in both home cooking and commercial applications. Cheese Slices led the processed cheese market in 2024 with a commanding 61.3% share.
Their convenience, uniform portions, and ready-to-use nature make them a top choice for quick meals and snacks, particularly in burgers, sandwiches, and wraps. Cattle Milk accounted for an overwhelming 89.1% of the processed cheese market. Its widespread use is driven by abundant availability, cost-effectiveness, and a fat composition that enhances cheese texture and flavor.
US Tariff Impact on Processed Cheese Market
In April 2025, the US implemented a 10% baseline tariff on global trading partners, impacting various industries, including food exports. Analysis and historical data indicate that this 10% tariff on EU cheese imports could reduce US imports of EU cheeses by 10% to 15%. Increased domestic cheese production in the US is expected to offset this decline. Meanwhile, European cheese exporters are likely to pivot toward emerging markets in East Asia and the Middle East to compensate for reduced US demand.
The impact on butter and anhydrous milk fat exports is anticipated to be less severe, as the US remains a net importer of butterfat. Historical evidence suggests that a 10% tariff on these products is unlikely to significantly disrupt EU milk fat exports to the US. Despite the relatively modest overall impact, the tariffs jeopardize EUR 1.9 billion in cheese and butter sales, posing challenges for companies heavily invested in the US market.
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The US tariffs have already affected Mexico and Canada, as promised by President Donald Trump, and now threaten €38 billion in European food exports, including iconic products like France’s Champagne and Italy’s Parmigiano cheese, which will become significantly more expensive for American consumers.
In the UK, Quicke’s Cheeses, a Devon-based company near Exeter, expressed concern over the new 10% tariffs on all UK exports to the US. Jane Quicke, the owner, noted that the company generates approximately 10% of its revenue, between £150,000 and £300,000 annually, from the US market. She highlighted that the tariffs could increase the retail price of their cheese in the US by more than 10%, as distributors and retailers adjust profit margins.
Key Takeaways
- Processed Cheese Market size is expected to be worth around USD 25.2 billion by 2034, from USD 17.7 billion in 2024, growing at a CAGR of 3.6%.
- Cheddar Cheese held a dominant market position, capturing more than a 36.4% share of the processed cheese market.
- Cheese Slices held a dominant market position, capturing more than a 61.3% share of the processed cheese market.
- Cattle Milk held a dominant market position, capturing more than 89.1% share of the processed cheese market.
- Foodservice (HoReCa) held a dominant market position, capturing more than a 59.4% share of the processed cheese market.
- Hypermarkets and Supermarkets held a dominant market position, capturing more than a 52.9% share.
- North America held a dominant position in the global processed cheese market, capturing more than a 43.9% share, equivalent to approximately USD 7.7 billion.
Report Scope
| Market Value (2024) | USD 17.7 Billion |
| Forecast Revenue (2034) | USD 25.2 Billion |
| CAGR (2025-2034) | 3.6% |
| Segments Covered | By Cheese Type (Cheddar Cheese, Blue Cheese, Brick Cheese, Camembert Cheese, Cottage Cheese, Cream Cheese, Mozarella Cheese, Romano Cheese, Swiss Cheese, Others), By Form (Cheese Slices, Cheese Blocks, Cheese Spreads, Cheese Cubes, Others), By Source (Cattle Milk, Goat Milk, Sheep Milk), By End-Use (Foodservice (HoReCa), Retail / Household, Food and Beverage Processors, Snacks Manufacturer, Others), By Distribution (Hypermarkets and Supermarkets, Club Stores, Discounters Grocery Retailers, Convenience Stores, Online Stores, Others) |
| Competitive Landscape | Almarai-Joint Stock Company, Arla food ingredients, Associated Milk Producers, Inc., Associated Milk Producers, Inc., Fonterra Foods, Kraft Heinz Foods, Lactalis group, Mondelez International Inc., Sargento Foods Inc., Savencia Fromage & Dairy, The Bel Group |
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Key Market Segments
By Cheese Type
- In 2024, Cheddar Cheese solidified its leading position in the processed cheese market, securing a 36.4% share. Its popularity stems from a robust flavor, wide availability, and versatility in both home cooking and commercial applications. Cheddar’s balanced taste makes it a go-to for sandwiches, burgers, and various dishes. Its long shelf life and excellent melting properties further boost its appeal in the processed cheese segment. The fast-food and snack industries, which heavily rely on Cheddar as a key ingredient, continue to drive its demand. As the processed cheese market grows, Cheddar’s entrenched presence in retail and foodservice ensures its continued dominance.
By Form
- Cheese Slices led the processed cheese market in 2024 with a commanding 61.3% share. Their convenience, uniform portions, and ready-to-use nature make them a top choice for quick meals and snacks, particularly in burgers, sandwiches, and wraps. The retail sector has fueled demand for Cheese Slices, as consumers gravitate toward pre-packaged, accessible cheese products. In the foodservice industry, their consistent meltability and rich flavor solidify their widespread use. With the growing demand for quick-serve and ready-to-eat foods, Cheese Slices are poised to maintain their strong market position.
By Source
- In 2024, Cattle Milk accounted for an overwhelming 89.1% of the processed cheese market. Its widespread use is driven by abundant availability, cost-effectiveness, and a fat composition that enhances cheese texture and flavor. Manufacturers favor cattle milk for its reliable quality and nutrient profile, making it ideal for producing diverse processed cheese products like slices, spreads, and blocks. High consumer familiarity with cattle milk-based cheese, especially in dairy-heavy regions, further cements its dominance. As processed cheese demand rises, cattle milk’s role as the primary source is expected to remain unchallenged.
Regional Analysis
- North America led the global processed cheese market, securing a 43.9% share, valued at approximately USD 7.7 billion. The United States drove this dominance, contributing roughly 78% of the region’s revenue, fueled by high per capita cheese consumption and a thriving foodservice sector. The widespread use of processed cheese in fast food staples like burgers and sandwiches, combined with its convenience and long shelf life, significantly boosted demand across the region.
- Canada accounted for about 13% of North America’s processed cheese market in 2024. Growing consumer interest in gourmet cuisine and natural ingredients has spurred demand for specialty and premium cheese varieties. Supported by government backing for the domestic dairy industry and stringent quality regulations, Canada maintains high standards in cheese production, further strengthening its market position.
Top Use Cases
- Fast Food Industry: Processed cheese is widely used in fast food for burgers, pizzas, and sandwiches due to its consistent meltability and rich flavor. Its convenience and uniform texture make it ideal for quick-service restaurants, boosting demand as fast food consumption grows globally, especially in urban areas.
- Ready-to-Eat Meals: Processed cheese is a staple in pre-packaged meals like macaroni and cheese or frozen pizzas. Its long shelf life and ease of use appeal to busy consumers seeking quick, tasty meal solutions, driving its popularity in the retail sector.
- Snacking Products: Cheese slices, cubes, and spreads are popular snacks due to their portability and convenience. Processed cheese’s appealing taste and texture make it a go-to for on-the-go snacking, with rising demand in retail for single-serve packs.
- Home Cooking: Processed cheese is favored in households for easy recipes like grilled cheese sandwiches or cheesy dips. Its affordability and versatility encourage home cooks to use it in everyday meals, contributing to steady market growth.
- Foodservice (HoReCa): Hotels, restaurants, and cafes rely on processed cheese for consistent quality in dishes like nachos or baked goods. Its ease of melting and portion control support operational efficiency, fueling its dominance in the foodservice sector.
Recent Developments
1. Almarai – Joint Stock Company
- Almarai has expanded its processed cheese portfolio with new flavors and formats, targeting health-conscious consumers. They introduced reduced-sodium and high-protein variants, leveraging their strong dairy supply chain. Innovations include convenient single-serve packs and resealable packaging to enhance shelf life. Almarai focuses on the Middle Eastern market, emphasizing affordability and quality.
2. Arla Food Ingredients
- Arla launched new functional processed cheese ingredients, improving meltability and texture for foodservice applications. Their Nutrilac cheese solutions help manufacturers reduce costs while maintaining quality. Recent R&D focuses on clean-label and sustainable production methods. Arla also supports plant-based cheese alternatives using dairy proteins.
3. Associated Milk Producers, Inc. (AMPI)
- AMPI invested in automation to boost processed cheese production efficiency. They introduced allergen-free cheese slices for schools and foodservice. Collaborations with pizza chains led to customized melt profiles. AMPI emphasizes sustainability, reducing water and energy use in processing plants.
4. Fonterra Foods
- Fonterra launched a new processed cheese range under the Mainland brand, featuring improved natural flavors and no artificial preservatives. They expanded into Asian markets with customized spicy and umami cheese variants. Fonterra also patented a lactose-free processed cheese technology for health-focused consumers.
Conclusion
The Processed Cheese Market thrives due to its versatility, convenience, and strong demand across fast food, retail, and foodservice sectors. With Cheddar cheese, slices, and cattle milk dominating, the market benefits from consumer preferences for quick meals and snacks. Rising interest in plant-based options and gourmet varieties further fuels growth, ensuring processed cheese remains a staple in global food consumption.
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