US Cheese Becoming an International Contender

US dairy product shipments are forecast to reach $122 billion in 2021. Advances will be driven by rising demand in domestic and export markets, resulting from population growth and increasing disposable personal income levels. Over the 2006-2016 period, dairy product output expanded at an average rate of 4.1% annually as higher volumes of dairy products were consumed and prices rose along with an improving economy.

Growth Drivers in the Domestic Cheese Market

Shipments of cheese, the largest product segment, are expected to grow briskly amidst rising US manufacturing of processed foods and a burgeoning snack food category, which may use cheese as an ingredient. Additionally, foodies interested in premium and locally made varieties of cheese will drive gains in small-batch cheese production.

Growth Drivers in Foreign Cheese Markets

Increasing demand for cheese in other parts of the world will be a major influence on domestic cheese production as consumers in Asia and the Middle East continue to adopt more Western-style diets, including consumption of foods containing cheese such as tacos, cheeseburgers, and pizza. For instance, Yum! Brands chain restaurants KFC, Taco Bell, and Pizza Hut have been increasing their presence internationally, with significant worldwide sales growth. Additionally, the perception of US-made cheese is improving in international spaces. For instance, The Washington Post recently reported on artisan American cheeses being served to a pleasantly surprised Italian audience at Cheese 2017, a cheese festival in Bra, Italy. As the reputation of US cheese continues to increase, exports of cheese may become a more significant share of domestic production.

Want to Learn More?

For in-depth analysis of dairy product trends, see Dairy Products: United States, a report published by the Freedonia Focus Reports division of The Freedonia Group.

This report contains historical data and analysis of dairy product shipments and trade in nominal US dollars from 2006-2016, along with projections for dairy product shipments to 2021. Shipments are segmented by type as follows:

• cheese
• fluid milk and cream
• frozen dairy
• yogurt
• butter
• other dairy products.

While you’re there, you can check out related reports such as Restaurants & Foodservice: United States and Beverages: United States.

About the Author

Cara Brosius is a Research Analyst with Freedonia Focus Reports. She holds a degree in economics, and her experience as an analyst covers multiple industries.