Cheese - Procurement Best Practices & Sourcing Strategies

Procurement Market Intelligence Report

Cheese – Procurement Best Practices & Sourcing Strategies

Cheese Market – Executive Summary, Value Chain Analysis, Global Market Analysis, Regional Market Analysis, Industry Analysis, Market Monitoring Dashboard & Insights, Impact of Brexit, Cheese Market Dynamics, Purchasing Process: RFP/RFI Builder, Supplier Analysis, Regional Analysis: North America, Sustainability Initiatives

1. Executive Summary
1.1. Summary of the Key Highlights
1.2. COVID-19 Impact
2. Value Chain Analysis
2.1. Dairy Derivatives: Value Chain
2.2. Cheese: Value Chain
2.3. Production and Manufacturing Technology
3. Global Market Analysis
3.1. Supply–Demand analysis
3.2. Trade Dynamics
4. Regional Market Analysis
4.1. North America
4.2. Europe
4.3. Asia
4.4. Oceania
5. Industry Analysis
5.1. Porter’s Five Forces Analysis
6. Market Monitoring Dashboard & Insights
6.1. Cost Structure Analysis
6.2. Price Trend Analysis
7. Impact of Brexit
7.1. Trading Relationships and UK’s Import Dependency
7.2. Supplier Base
7.3. Price Movements
8. Cheese Market Dynamics
8.1. Cheese Supply Market
8.2. Procurement Strategies
9. Purchasing Process: RFP/RFI Builder
9.1. RFP/RFI Builder
10. Supplier Analysis
10.1. Supplier Profile
10.2. Supplier SWOT
11. Regional Analysis: North America
11.1. Country Analysis: US
11.2. Country Analysis: Canada
12. Sustainability Initiatives
12.1. Sustainability Initiatives
12.2. Sustainability Best Practices: Case Studies

What is the global cheese market scenario, and what influences it?


Global cheese production has increased by 8.3% in the last five years. The industry’s supply reached 25.4 million metric tons (MMT) in 2022, exhibiting adaptation and stability. Cheese consumption increased to 21.3 MMT by early 2022, owing to increased storage levels.


What are the crucial drivers fostering the growth of the cheese market?


A primary factor has been a paradigm shift in consumer attitudes toward better eating patterns. The cheese business has created low-fat, protein-rich, and functional cheese products. Furthermore, advances in dairy processing technology, the incorporation of cutting-edge procedures, and the rise of e-commerce have all played essential roles in driving market expansion.


Which regional market plays a significant role in the global cheese industry?


Europe dominates the market, which accounts for 48% of global cheese production and exports. The United States, Japan, New Zealand, and Australia all play significant roles in the worldwide cheese industry, each with its abilities.


Global Cheese Market Size


The insights from the latest statistics suggest that there are ample opportunities for growth in the cheese market. According to the ELINT Market Research report, there is a notable increment of 8.3% in the cheese industry compared to the last five years. The large amount of stock build-up indicates a surplus product in stock, providing an advantage to the industry. The highest supply of cheese at 25.4 MMT in 2022 globally marks the ability to meet needs and the industry’s stability. The demand for cheese worldwide has changed significantly, rising to 21.3 MMT by early 2022.


The cheese market holds promising opportunities, with several key factors driving them. Stocks yield profitability, indicating a good and productive industry base, contributing to industry growth. By reaching an amount of 25.4 MMT, the global supply of cheese can meet the increasing demand worldwide. Cheese is one of the most sourced and costly items from the United States. It costs around USD 4,569 per metric ton (MT), which proves how competitive and economically viable the cheese industry is. The data indicated a strong and long-lasting cheese industry that presents favorable stakeholder conditions to succeed.


Market Definition


Cheese, a highly demanded dairy product that is a milk by-product, has a broad scope in the food sector and is a favorite of a large population worldwide. The industry brings uniqueness with its diversity, offering a wide range of cheese types, textures, and flavor profiles to meet the changing consumer preferences. It plays a crucial part in the livelihoods of farmers and cheese makers, distributors, and retailers. The market dynamics change with international trade as cheese products are continuously imported and exported among different countries worldwide.


Cheese Market Drivers


  • Rising Consumer Demand:


Increasing consumer awareness regarding healthy food habits with a preference for ready-to-eat products is creating significant traction for the cheese industry. Cheese finds its wide application in diverse cuisines, pushing its favorability.


  • Increasing Health Consciousness:


Growing consumer awareness of the high nutritional benefits associated with cheese, such as its calcium and protein content, influences its overall dynamics. Leading manufacturers continuously work on new product offerings with organic and low-fat cheese types to fulfill the demands of the health-conscious population.

  • Advancements in Product Development:


Massive investments in R&D activities help to bring innovations in cheese flavors, varieties, and overall branding to attract a large consumer base looking for favorable culinary experiences. Adopting modern technology during cheese production brings higher efficiency, reduced costs, and improved product quality.


Cheese Market Challenges


  • Supply Chain Hurdles:


The global chees industry many times witnesses hurdles, especially regarding the supply chain disruptions influencing the overall production and distribution system. In addition, the constant fluctuations in costing of raw materials also affect cheese production.


  • Stringent Regulations:


With the introduction of stringent safety and quality regulations, it takes time for market participants to deal with it effectively. Many times, properly complying with global standards can be challenging, influencing the trade of cheese.


Cheese Market Opportunities


  • Emerging Markets:


Several untapped markets are yet to be explored, especially in developing regions, which offer lucrative opportunities for the industry. Continuously changing dietary preferences and increasing disposable incomes complement a rising consumer base.


  • E-commerce Boom:


The rapidly growing online shopping activities present a strong base for cheese manufacturers to reach a large audience. Online mediums offer flexibility to conduct direct-to-consumer sales, boosting industry presence.


Cheese Market Segmentation


  • Type of Cheese: In terms of cheese type, the research report divides the market into Cheddar, mozzarella, feta, blue cheese, and others.


  • Distribution Channel: As per the distribution channel, the research classifies the market into Supermarkets/hypermarkets, specialty stores, online retail, and more.


  • Regional Outlook: According to regional dynamics, the research report segments the market into Asia Pacific, Latin America, North America, the Middle East and Africa, and Europe.


Regional Dynamics


Europe’s 48% share in producing and exporting 42% of the cheese has made it a strong contender in international markets. The United States is significant in production and consumption by making 29% and providing numerous dairy industry products. The European Union is a major cheese producer and dominates the world’s cheese market, accounting for 49% of global consumption. New Zealand provides high-quality dairy products and has a 17% share in the market. Notably, some significant countries importing cheese include Japan (24%) and Australia (10%). The import rate is high because Japan has a surge of demand for different cheese varieties, and Australia supplements its need to meet its standards. Strategic political alliances and trade agreements strongly influence international trade dynamics for dairy products, including cheese.


Engagement Models


The comprehensive research report covers key insights into the different engagement models in the highly dynamic cheese market, especially with a central focus on the supplier landscape, covering quantity, contract type, and scope. Businesses operating in the industry often experience complexity in managing the sourcing process and effective management of risks involved with dependency while choosing supplier types. On a larger scale, long-term engagement lasting 1 to 2 years is a trend in the industry, with assured stability and cooperation. Regarding contract type, global contracts are preferred among participants but require deep insights and hold on international trade regulations. Among different model types, the cooperative supplier model is under the radar of businesses, promoting collaboration and mutual responsibility to fulfill emerging consumer demands for high-quality products.


Recent Activities in the Cheese Market


  • Armored Fresh, a promising participant in the global dairy alternatives industry, has successfully launched a National Oat Milk Cheese Tour, primarily targeted to make a buzz in the food service and culinary sector. Such developments foster positivity in the culinary industry, providing a high-quality, innovative, dairy-free alternative for food service professionals.


  • Tesco, a prominent leader in the global supermarket chain, has announced a significant collaboration with a rapidly growing West Cork-based cheese company. The valuation of the contract stands at €17 million, indicating a notable rise in the company’s procurement of West Cork cheese products. In addition, the main motive behind such a move is to capitalize on the rising consumer demand and evolving market dynamics.


Cheese Market Players


Some promising players operating in the global cheese market are Fonterra, Arla Foods, Saputo, Murray Goulburn Cooperative Co. Limited, Bega Cheese, and Butter Factory Company Holdings Limited. These players bring quality product offerings, implement highly effective strategies, and form strategic alliances to take the lead in the highly competitive market. The global cheese industry is undergoing a significant transformation with continuous advancements from industry giants and new market entrants.

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