Cheese Production in the UK: Market Size, Businesses & Forecast 2026

The UK cheese production industry encompasses the processing of raw milk into various cheese types, with cheddar remaining the dominant domestic product. In the 2024/25 milk year, cheese manufacturing absorbed an unchanged 33% share of the UK's total milk supply (Agriculture and Horticulture Development Board, 2025). The industry is experiencing strong export-led momentum, with quarterly export volumes increasing by 15.6% year-on-year in Q1 2026 (Department for Environment, Food and Rural Affairs, 2026). Overall, the sector is moving toward efficiency optimization and expanding international footprint amidst fluctuating domestic milk yields.

Industry snapshot

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Historical & forecast

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What does the Cheese Production in the UK industry cover?

This industry comprises establishments primarily engaged in the processing of raw milk into hard, semi-hard, soft, and blended cheeses. The scope includes large-scale industrial creameries producing commodity cheeses as well as artisanal, regional cheesemakers. It covers the production of whey and cream as by-products of the cheese-making process.

• •Includes the processing of milk derived from cattle, sheep, and goats.
• •Covers secondary processing operations such as cutting, grating, and blending cheese with flavorings.
• •Excludes direct-to-consumer farm-gate retail sales that do not involve distinct industrial manufacturing facilities.

Who operates in the industry and how is it structured?

The UK cheese manufacturing sector features a moderate level of concentration, dominated by a mix of multinational cooperatives, corporate dairy processors, and substantial independent entities. Processing is heavily integrated with the broader UK dairy supply chain, where raw milk availability directly dictates production capacity. Production footprints are concentrated near major dairy farming regions in England, Wales, Scotland, and Northern Ireland.

• •In the 2024/25 milk year, UK cheese production fell by 3.2% compared to the previous year due to shifting processing allocations (AHDB, 2025).
• •The UK dairy producer base reduced by 2.6% to 7,040 farms as of April 2025, altering the raw material procurement landscape.
• •Major operating hubs are located in the South West of England, Cheshire, and parts of Wales and Scotland.

What drives demand in the industry?

The industry is driven by robust domestic retail consumption, structural food service demand, and increasingly competitive international export markets. Global demand for British cheese has risen sharply due to its cost-competitiveness against Oceania-produced alternatives. Price fluctuations in input costs, such as animal feed and energy, heavily influence processor margins and manufacturing output volumes.

• •UK cheese export volumes increased by 15.6% or 7,500 tonnes year-on-year in Q1 2026 (Defra / HMRC, 2026).
• •The largest international demand gains came from the European Union, including a 3,500-tonne increase to the Netherlands in early 2026.
• •Domestic retail spend on cheese remained flat for the year ending March 2025, shifting volume growth priorities to overseas trade.

Who are the notable companies in the industry?

Competition within the UK cheese market is high and increasingly globalized, featuring prominent domestic and multinational operators. Companies compete on economies of scale, supply chain efficiency, brand equity, and product innovation such as blended flavors. The landscape includes major global cooperatives and established corporate entities with deep processing infrastructure.

• •Arla Foods UK (subsidiary of Arla Foods Amba) operates extensive dairy processing and cheese manufacturing facilities across the UK.
• •Saputo Dairy UK (subsidiary of Saputo Inc.) is a major market player known for prominent cheddar brands like Cathedral City.
• •Dairy Partners is a significant independent family-owned cheesemaker specializing in mozzarella and pizza cheese.
• •The Ilchester Cheese Co. (owned by Tine Norway) operates as a leading specialist in blended and flavored cheese formulations.

What are the recent trends and outlook?

The industry is transitioning through a period of tightening domestic availability caused by a massive surge in international export volumes. While raw milk deliveries in the 2025/26 season hit record highs due to favorable dairy economics, forecasts indicate a contraction ahead. Processors are increasingly adjusting product lines to maximize cheese output over other dairy commodities due to steady global consumption.

• •Total cheese production and imports grew by 1.6% and 3.2% respectively in Q1 2026, though high exports led to a 1.1% shrinkage in domestic stocks (AHDB, 2026).
• •GB milk production for the 2026/27 season is forecast to decline by 0.9%, which is expected to tighten cheese manufacturing inputs.
• •Geopolitical and logistical challenges in the Middle East are posing potential headwinds for secondary export markets in mid-2026.

How is the industry regulated?

UK cheesemakers operate under stringent food safety, environmental, and geographical protection regulations managed by central government bodies. Compliance focuses on hygiene standards during pasteurization and processing, effluent management, and product labeling truthfulness. Protected Status certifications also regulate traditional regional cheeses to preserve geographical identity.

• •Monitored closely by the Food Standards Agency (FSA) for food hygiene, pathogen control, and safety compliance.
• •Subject to the UK's Geographical Indication (GI) schemes, protecting iconic designations like 'West Country Farmhouse Cheddar'.
• •Environmental compliance mandates strict management of whey disposal and wastewater generated during large-scale operations.

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

• Agriculture and Horticulture Development Board (AHDB) Dairy Market Summary 2024/25 ·
• Department for Environment, Food and Rural Affairs (Defra) UK Milk Utilisation Statistics 2026 ·
• HM Revenue and Customs (HMRC) UK Trade Data 2026 ·
• UK Companies House Standard Industrial Classification (SIC) 2007