The cheese market in 2024 demonstrated remarkable resilience, charting its own course amid broader dairy market volatility. European cheese production grew by 0.83%, slightly outpacing milk production growth of 0.73%, despite significant challenges in raw milk supply. Production capacity expanded notably, with Ireland and Spain emerging as new regional players, while Germany led growth with a 3.7% production increase.

The raw milk market faced substantial headwinds, with Ireland and the Netherlands experiencing sharp decreases during spring flush, while Germany and France struggled to maintain momentum. These challenges were exacerbated by lower herd sizes and blue tongue disease outbreaks across Western Europe, leading cooperatives to raise farm-gate milk prices to secure supply.

Despite these supply constraints, cheese consumption remained strong, with European exports growing by 2.04%. Consumer behavior showed resilience through inflationary periods, though with some migration from branded to private label products. However, current market conditions present a paradox with prices hovering around or below cost-price levels against farm-gate milk prices.

Looking ahead to 2025, the sector anticipates production adjustments in Q1 due to margin pressure, with potential recovery in the second half as margins improve. Success will depend on balancing volume and profitability while maintaining the strong consumer base. The combination of sustained demand and favorable whey returns provides fundamental support, though producers must navigate the ongoing tension between high farm-gate prices and limited herd expansion.

What’s inside this report

For a deeper dive into the trends that defined 2024 and the forces shaping 2025, our full report provides detailed insights into:

  • Raw Milk
  • Cheddar
  • Gouda
  • Mozzarella
  • Butter & Cream
  • Skimmed Milk Powder (SMP)

Each section offers comprehensive data and analysis, helping you navigate the complexities of the dairy market and make informed decisions for the year ahead.

Download the full report now to stay ahead of the curve and uncover actionable insights for 2025: https://vespertool.com/downloads/downloads-eoy-report-cheese-2024/