Industry growth is projected to stay strong as per capita cheese consumption grows
New York, NY (PRWEB) March 11, 2014
The Cheese Production industry has experienced sharp growth in recent years. As the consumption of milk and other dairy products declines, more consumers have switched to eating cheese, and per capita cheese consumption has increased. In addition, coming off a low in 2009, disposable income has increased, leading consumers to eat out more often and sparking demand from restaurants and bars, which comprises the industry's largest market. These increasing consumption trends have contributed to Cheese Production industry growth at an annualized rate of 7.4% to $47.8 billion in the five years to 2014, including 0.4% growth in 2014.
According to IBISWorld Industry Analyst Antal Neville, “One of the primary achievements in the industry in the past five years has been pushing export growth.” Exports have exploded since 2009, growing an annualized 28.1% to $1.6 billion in 2014. In fact, the industry also surpassed New Zealand in 2013 to become the world's largest cheese exporter. Much of this growth has been the result of efforts of industry associations and government programs in the past five years, but booming demand in countries whose diets are westernizing, including Japan, Korea and China, have contributed to this growth as well. These trends are expected to continue over the next five years, and industry exports are expected to continue swelling as a result.
“Aside from exports, overall industry growth is projected to stay strong,” says Antal. Per capita cheese consumption is expected to keep growing, and more consumers will eat out at restaurants and bars, which comprises the sector that buys the most products from the industry. Furthermore, as consumers continue to develop a taste for cheese, they will demand more specialty varieties that command higher prices. These cheeses will remain a small part of overall industry revenue, but are expected to contribute to broadening the scope and overall expansion of the industry.
The Cheese Production industry exhibits low market share concentration. The industry is characteristically fragmented, with many independent enterprises located throughout the country. There are also a number enterprises that operate as dairy farm cooperatives, allowing farms to organize and streamline cheese production at a state or regional level. The rise of artisanal, organic and gourmet products in the past five years has encouraged further fragmentation, as small, independent enterprises and niche producers are increasingly enjoying healthy demand from an expanding American cheese palate.
For more information, visit IBISWorld’s Cheese Production in the US industry report page.
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IBISWorld industry Report Key Topics
The Cheese Production industry manufactures cheese products from raw milk and processed milk products.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
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