Cheese Production in European Union: Market Size, Businesses & Forecast 2026

The cheese production industry in the European Union involves the manufacturing and processing of diverse cheese varieties from dairy milk, representing a cornerstone of the EU agri-food sector. According to official Eurostat figures, the European Union produced 10.8 million tonnes of cheese in 2024, absorbing substantial portions of the region's overall raw milk collection. The sector is increasingly adopting a value-focused model, with production remaining dynamic and projected by the United States Department of Agriculture (USDA) to reach 10.72 million tonnes in 2025. Market direction is driven by premiumization, a strong focus on geographical indications, and shifting processing prioriti

Industry snapshot

Key public data points

Get in touch and our analysts will be happy to help with custom market sizing, deeper segmentation, supplier detail or a bespoke study built for you.

What does the Cheese Production in European Union industry cover?

The cheese production industry encompasses the processing of raw milk, predominantly cows' milk, but also ewes', goats', and buffaloes' milk, into fresh, unripened, cured, or aged cheese products and curds. Under European statistical classifications, this sector includes large-scale industrial dairy operations as well as localized, artisanal processing facilities. The industry's scope covers everything from standard commodity cheeses like Cheddar and Gouda to specialized Protected Designation of Origin (PDO) varieties.

• •Classified globally and regionally as part of the broader dairy manufacturing sector dedicated to transforming perishable raw materials into stable consumer products.
• •Utilizes significant dairy resources, with Eurostat recording that the EU utilized 59.9 million tonnes of whole milk and 17.0 million tonnes of skimmed milk for cheese production in 2024.
• •Includes downstream processing activities such as shredding, blending, and packaging for retail, foodservice, and industrial clients.

Who operates in the industry and how is it structured?

The European Union cheese market is characterized by a dual structure comprising massive multinational cooperative organizations and numerous small-to-medium specialized private dairies. Production is highly concentrated geographically, with a few key member states delivering the vast majority of total output. Industrial processors have heavily optimized their facilities to shift raw milk allocations strategically toward cheese to maximize financial returns.

• •Germany leads European cheese production by volume, yielding approximately 2.35 million metric tons in 2023 according to official regional data tracking.
• •France and Italy represent the subsequent largest producers, recording 1.92 million metric tons and 1.39 million metric tons respectively in 2023.
• •Cooperatives play a dominant structural role, managing extensive farmer-owned supply networks to ensure a stable supply of raw milk amidst tightening herd constraints.

What drives demand in the industry?

Demand for EU cheese is sustained by robust domestic retail consumption, an expanding quick-service restaurant and foodservice sector, and solid international export markets. Consumer preferences are shifting steadily toward high-protein snacks, functional or lactose-free alternatives, and premium artisanal cheeses with clear regional traceability. Externally, European cheeses enjoy strong global prestige, shielding the sector against fluctuations in domestic fluid milk consumption.

• •Domestic market demand remains highly resilient, acting as the primary anchor for processing volumes ahead of holiday and peak consumption seasons.
• •According to the United States Department of Agriculture (USDA), EU cheese exports are projected to reach approximately 1.39 million tonnes in 2025, confirming its vital role in global trade.
• •Growing retail interest in clean-label products and clear carbon or sustainability labeling acts as a strong differentiator for premium brands.

Who are the notable companies in the industry?

Competition within the European Union cheese industry is intense, featuring a mix of major global dairy conglomerates, regional cooperative giants, and dedicated specialty cheese manufacturers. Market leaders compete on processing efficiency, brand equity in retail channels, and the ability to innovate across packaging and product types. Strategic consolidation and capital investments continue to reshape the scale of regional operations.

• •Groupe Lactalis S.A. operates as a prominent global leader based in France, commanding iconic brands such as Président and Galbani across international markets.
• •Royal FrieslandCampina N.V., a major Dutch cooperative owned by thousands of member farmers, maintains a substantial footprint in traditional and specialty cheese production.
• •Arla Foods amba, a Danish-based multinational cooperative, aggressively expands its capacity, including a notable USD 228 million investment in UK-based mozzarella production in early 2026.
• •Savencia S.A. (Savencia Fromage & Dairy), headquartered in France, specializes in high-margin premium specialty cheeses and value-added retail differentiation.

What are the recent trends and outlook?

The EU cheese industry is navigating a structural transition characterized by shrinking dairy herds and rising environmental compliance demands, leading processors to prioritize cheese over less profitable milk powders. Technological advancements, such as automated milk analyzers and digital farm-management tools, are being deployed to offset raw material limitations by improving overall processing yields. The regulatory environment is also shifting, focusing on economic resilience and simplification to support farmer margins.

• •Total EU raw milk output stood at 161.8 million tonnes in 2024, though long-term dairy cow populations continue a steady structural decline.
• •The European Commission's short-term agricultural outlook expects dairy deliveries to remain generally stable in 2025, with a minor 0.15% year-on-year adjustments.
• •Processors are scaling back production of whole milk powder and butter to allocate limited milk pools directly into dynamic cheese production lines.

How is the industry regulated?

Operators must comply with stringent European Union food safety, hygiene, and environmental mandates that govern the entire dairy supply chain from farm to fork. The sector is deeply influenced by the Common Agricultural Policy (CAP) and quality schemes that protect traditional regional foods from imitation. Recent regulatory updates have aimed to balance rigorous environmental goals with the economic sustainability of dairy producers.

• •Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) frameworks legally safeguard traditional European cheese varieties.
• •European hygiene regulations mandate strict traceability and frequent temperature-controlled collection metrics across all cross-border milk and cheese logistics.
• •Recent policy pivots by the European Commission emphasize administrative simplification and economic carrot-based incentives rather than rigid regulatory restrictions.

Government, statistical and trade sources used for this Claight analysis.

• Eurostat Milk and Milk Product Statistics 2024 ·
• European Commission Directorate-General for Agriculture and Rural Development (DG AGRI) Dairy Dashboard 2026 ·
• United States Department of Agriculture (USDA) Dairy World Markets and Trade Report 2024-2025 ·
• Arla Foods amba Annual and Corporate Announcements 2025-2026