PUBLISHER: Allied Market Research | PRODUCT CODE: 1414997
PUBLISHER: Allied Market Research | PRODUCT CODE: 1414997
According to a new report published by Allied Market Research, titled, "Organic Cheese Market," The organic cheese market was valued at $7.3 billion in 2022, and is estimated to reach $16.3 billion by 2032, growing at a CAGR of 8.5% from 2023 to 2032.
The urge for organic cheese is driven by the commitment of organic farming to the humane treatment of farm animals. Unlike conventional practices, organic dairy farmers prioritize the well-being of cows by avoiding the use of hormones or antibiotics to artificially boost milk production. Instead, they focus on maintaining the cows good health through organic diets and providing them with access to fresh air, natural light, and open pasture. In case of illness, organic farmers use homeopathic medicines, whereas non-organic farms often administer antibiotics preventively, even when the cows are healthy. This excess use of antibiotics not only reduces their effectiveness in combating diseases but also poses a potential risk to human health. Consumers value the significance of animal welfare and responsible antibiotic usage in organic farming, which contributes to the increasing demand for organic cheese.
However, the production of organic cheese faces certain challenges. Organic cheese requires organic milk, which is sourced from organically raised cows. However, the availability of organic milk is limited due to the smaller number of organic dairy farms compared to conventional ones. As a result, organic cheese is often priced higher than conventional cheese, making it less accessible to price-sensitive consumers. Organic farmers also face higher production costs due to lower milk yields and the need to purchase supplementary feed. Additionally, the lack of energy feeds in organic farming and the difficulties in growing energy feed crops like corn under organic conditions further contribute to the higher prices of organic cheese. Organic farmers also receive lower milk prices compared to non-organic farmers, which poses a challenge for the organic cheese market. Furthermore, the competition from readily available and lower-priced conventional cheese adds to the market constraints for organic cheese.
Despite these challenges, the worldwide demand for organic cheese is steadily increasing due to factors such as population growth, higher consumption per person, the growth of gym culture, on-the-go eating solutions, increased food consumption outside the home, and the rise of online and mobile shopping. Organic cheese aligns with these trends as a convenient and protein-rich option. As incomes rise and urbanization increases, individuals tend to shift their calorie intake towards proteins, including cheese, rather than relying heavily on basic carbohydrates. These factors contribute to the larger consumer base for organic cheese products.
While competition authorities typically address concerns related to competition in the food industry, the organic cheese market presents additional complexities that require attention. The competition between organic and conventional cheese is influenced by factors such as price sensitivity and consumer preferences for affordability over organic certification. These factors collectively impact the growth of the organic cheese market.
The organic cheese market is analysed on the basis of type, distribution channel, form and region. By type, the market is divided into Cheddar, Mozzarella, Swiss, Parmesan, Feta, Others. By distribution channel, the market is segmented into Retail Distribution, Food Service Outlets, Food Processing Companies, Clubs. Depending on forms, it is classified into Slices, Blocks, Cubes, Spreads, Others. Region-wise, the market is analysed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Russia, Italy, Spain, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia & New Zealand, South Korea, ASEAN, and the rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Turkey, Saudi Arabia, and the rest of LAMEA).
The major players operating in the market focus on key market strategies, such as mergers, product launches, acquisitions, collaborations, and partnerships. They have been also focusing on strengthening their market reach to maintain their goodwill in the ever-competitive market. Some of the key players in the organic cheese market include Kerry Group plc, Groupe Lactalis S.A, Unilever N.V., Fonterra Co-operative Group Limited, Organic Valley, The Kroger Co., Arla Foods, Ornua, Danone, Eden Valley Creamery, Hormel Foods.