Cheese at the Forefront: Driving Growth in the U.S. Dairy Industry Through Innovation and Investment
Source: The DairyNews
As demand for cheese continues to rise, U.S. dairy manufacturers are capitalizing on this trend with significant investments in production and retail strategies. Currently, cheese consumption in the U.S. has reached a record high of nearly 42 pounds per person annually, up from 32.2 pounds in 2000 and 21.9 pounds in 1980, as per USDA data.
This surge is driven by an increasing appetite for natural, specialty, and private-label cheeses.
The International Dairy Deli Association projects that retail cheese sales will grow at an annual compound rate of approximately 4.5% through 2030. In 2023 alone, natural cheese sales grew by 5%, with specialty cheese products also seeing a notable increase of 3.1%, despite their higher price points. This trend suggests that U.S. consumers are willing to pay more for premium products even amid inflationary pressures.
The rise in private-label cheese sales is particularly striking, with natural cheese overtaking milk as the largest dairy category in private-label sales, totaling $9.5 billion as of January 28. This shift highlights the strategic emphasis retailers are placing on cheese, allocating more shelf and display space to these products, especially in the natural and specialty segments.
On the manufacturing front, the increased demand has spurred a boom in the construction of new facilities across the U.S. Notable developments include Hilmar Cheese Company’s new plant in Kansas, Leprino Foods’ $870 million investment in a Texas facility, and Great Lakes Cheese Company’s expansion in New York. These facilities are set to enhance the U.S.'s position as a leading cheese producer and exporter, with significant growth in exports, up 688% since 2000.
Domestically, cheese continues to dominate U.S. dairy consumption, supported by trends like the popularity of food-at-home post-COVID-19 and the viral appeal of cheese-centric content on social media platforms like TikTok. Even as consumers face economic pressures, cheese remains an "affordable indulgence," with sales of specialty and natural cheeses indicating a shift towards quality over quantity.
This dynamic growth in the cheese sector is reshaping the U.S. dairy industry, making it one of the most vibrant and invested-in categories, both in manufacturing and retail landscapes.
The International Dairy Deli Association projects that retail cheese sales will grow at an annual compound rate of approximately 4.5% through 2030. In 2023 alone, natural cheese sales grew by 5%, with specialty cheese products also seeing a notable increase of 3.1%, despite their higher price points. This trend suggests that U.S. consumers are willing to pay more for premium products even amid inflationary pressures.
The rise in private-label cheese sales is particularly striking, with natural cheese overtaking milk as the largest dairy category in private-label sales, totaling $9.5 billion as of January 28. This shift highlights the strategic emphasis retailers are placing on cheese, allocating more shelf and display space to these products, especially in the natural and specialty segments.
On the manufacturing front, the increased demand has spurred a boom in the construction of new facilities across the U.S. Notable developments include Hilmar Cheese Company’s new plant in Kansas, Leprino Foods’ $870 million investment in a Texas facility, and Great Lakes Cheese Company’s expansion in New York. These facilities are set to enhance the U.S.'s position as a leading cheese producer and exporter, with significant growth in exports, up 688% since 2000.
Domestically, cheese continues to dominate U.S. dairy consumption, supported by trends like the popularity of food-at-home post-COVID-19 and the viral appeal of cheese-centric content on social media platforms like TikTok. Even as consumers face economic pressures, cheese remains an "affordable indulgence," with sales of specialty and natural cheeses indicating a shift towards quality over quantity.
This dynamic growth in the cheese sector is reshaping the U.S. dairy industry, making it one of the most vibrant and invested-in categories, both in manufacturing and retail landscapes.
