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

The Cheese Production industry in the US encompasses establishments primarily engaged in manufacturing natural, processed, and substitute cheese products from raw or processed milk and plant-based proteins. Over the past several decades, the sector has experienced steady expansion driven by persistent per capita consumption gains and robust demand for industrial cheese inputs. According to the USDA National Agricultural Statistics Service, total US cheese output (excluding cottage cheese) reached 1.23 billion pounds in March 2025 (USDA National Agricultural Statistics Service), maintaining a positive growth trajectory despite evolving supply chain dynamics and farm-level consolidation.

Industry snapshot

Key public data points

Historical & forecast

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What does the Cheese Production in the US industry cover?

The industry comprises facilities transformed under federal guidelines to manufacture a diverse array of solid, semi-solid, and spreadable cheese products. The scope includes natural cheese varieties such as Cheddar, Mozzarella, and Colby, processed cheeses, cheese spreads, and increasingly, plant-based cheese analogs. Notably, the production of cottage cheese is excluded from this specific industrial classification and is instead designated under fluid milk processing.

• •Classified officially under NAICS code 311513.
• •Includes the processing of raw byproduct streams like liquid whey used for secondary food manufacturing.
• •Covers both animal-milk based cheeses and dairy alternatives formulated from soy or other grains.

Who operates in the industry and how is it structured?

The US cheese manufacturing market operates as a highly integrated framework that relies on a mixture of massive agricultural cooperatives and commercial multi-plant corporate processors. Raw milk procurement is heavily decentralized across primary dairy farms, but processing has structurally shifted toward fewer, larger-scale operations to optimize capital investment. Regional concentrations remain dense within traditional dairy-producing states like Wisconsin and California.

• •According to the USDA Economic Research Service 2022 reports, the structural shift to larger dairy operations has altered downstream processing networks.
• •Agricultural cooperatives process a significant portion of raw milk directly into bulk cheese formats for food service buyers.
• •High capital requirements for commercial spray-drying and curdling machinery act as a moderate barrier to entry.

What drives demand in the industry?

Domestic cheese demand is propelled by stable retail consumer purchasing habits and extensive integration within the food service and commercial meal preparation sectors. Multi-product snack adaptations and the omnipresence of cheese in quick-service restaurant menus provide consistent industrial demand. Concurrently, international markets have expanded as global consumer preferences shift toward higher protein diets, lifting export volumes for both finished cheeses and valuable secondary whey components.

• •Italian type cheese, heavily utilized by commercial pizza chains, achieved an output of 518 million pounds in March 2025 (USDA NASS).
• •American type cheese production, largely tied to processed slices and retail blocks, totaled 500 million pounds in March 2025 (USDA NASS).
• •Export markets in Asia have driven sustained international commercial demand for dry whey, lactose, and whey protein isolates (USDA ERS).

Who are the notable companies in the industry?

Competition in the US cheese space is intense, characterized by tight processing margins and fierce brand placement battles on retail shelves. Major players include large agricultural cooperatives alongside major multinational corporations that manage recognizable household brands and private label contracts. Market share is highly contested through product diversification, functional ingredient innovation, and logistical optimization.

• •Saputo Cheese USA Inc., a major division of the publicly traded global dairy processor Saputo Inc., maintains extensive operations across multiple US states.
• •Lactalis American Group Inc. operates as a leading market participant, representing the US interests of the French multinational Lactalis.
• •Schreiber Foods Inc. functions as a massive employee-owned private entity focused heavily on private label and food service distribution.
• •Sargento Foods Inc. remains a prominent, highly competitive national brand family specializing in shredded and sliced natural cheeses.

What are the recent trends and outlook?

The industry is increasingly defined by technological integration, including automated curd processing, high-speed packaging, and precision whey separation techniques. As raw processing margins face volatility from fluctuating milk prices, manufacturers are expanding into specialized high-protein lines such as ultra-filtered cheeses and targeted sports nutrition components. The general outlook points to steady volume expansion alongside deeper investments in facility sustainability and energy efficiency.

• •Total cheese output excluding cottage cheese increased 1.4 percent year-over-year when comparing March 2025 data against March 2024 (USDA NASS).
• •Technological advancements have allowed processors to maximize profits by converting raw liquid whey into lucrative whey protein concentrates (WPC).
• •Growth in organic milk production segments has driven the development of niche, premium organic cheese lines.

How is the industry regulated?

Cheese producers operate under rigorous regulatory supervision from federal and state agricultural and health agencies. Compliance mandates dictate specific pasteurization parameters, strict facility sanitization protocols, and detailed nutritional and allergen product labeling. Operators must also navigate complex federal milk marketing orders that heavily influence raw input pricing strategies.

• •Plants must comply with comprehensive food safety protocols under the FDA Food Safety Modernization Act (FSMA).
• •The USDA defines strict legal Standards of Identity for individual cheese classifications to prevent consumer misrepresentation.
• •Effluent and wastewater discharge resulting from large-scale curd washing are strictly monitored under Environmental Protection Agency (EPA) standards.

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

• USDA National Agricultural Statistics Service Dairy Products Report 2025 ·
• USDA Economic Research Service Dairy Readings 2022-2024 ·
• U.S. Census Bureau North American Industry Classification System 2022