Customized Report Service – Cheese and butter (organic) food trends in the United States

Global trade overview

The global import market for cheese and curd (HS:0406) reached a total of US$41.0 billion (7.4 million tonnes) in 2023, which grew by a value CAGR of 6.3% between 2019 and 2023. Germany (value market share: 13.7%) was the largest global importer of cheese and curd products valued at US$5.6 billion (872.6 thousand tonnes), followed by France (7.4%) with imports valued at US$3.0 billion (478.7 thousand tonnes) and Italy (6.9%) with an import value of US$2.8 billion (593.1 thousand tonnes) in 2023.

The United States was the 8th largest market for imports of cheese and curd products accounting for 4.4% of the world import market share at a value of US$1.8 billion (193.5 thousand tonnes) in 2023. Canada (1.2%) in comparison, was only the 23rd largest import market for cheese and curd products at a value of US$474.3 million (55.8 thousand tonnes) - exporting a total of US$80.9 million (9.3 thousand tonnes) in 2023.

The global import market for butter and dairy spreads, including other fats and oils derived from milk (HS:0405) declined from US$12.2 billion (1,901.1 thousand tonnes) in 2022 to a total of US$10.7 billion (1,811.8 thousand tonnes) in 2023. Albeit, total imports from the world of butter and dairy spreads slightly grew by a CAGR of 1.8% in value (volume: −2.0%) between 2019 and 2023. France (value market share: 13.7%) was the largest global importer of butter and dairy spreads valued at US$1.5 billion (254.3 thousand tonnes), followed by Germany (8.6%) with imports valued at US$918.3 million (151.8 thousand tonnes) and the Netherlands (7.9%) with an import value of US$848.2 million (177.7 thousand tonnes) in 2023.

The United States was the 6th largest market for imports of butter and dairy spreads accounting for 5.8% of the world import market share at a value of US$620.2 million (81.1 thousand tonnes) in 2023. Canada (2.0%) in comparison, was the 12th largest import market for butter and dairy spreads at a value of US$215.8 million (35.9 thousand tonnes) - exporting a total of US$3.8 million (750.1 metric tonnes) in 2023.

Imports of cheese, butter and dairy spreads in the United States

Cheese

In 2023, the top three suppliers of cheese and curd products to the United States were Italy at a market share of 26.5% (US$482.9 million, 37.4 thousand tonnes), France at 11.5% (US$210.3 million, 20.4 thousand tonnes) and Spain at 8.2% (US$149.3 million, 15.4 thousand tonnes) in 2022. Canada at a market share of 4.1% was the 8th largest supplier to the United States at an import value of US$74.0 million (7.7 thousand tonnes) in 2023. Amongst the top 10 markets, imports from Nicaragua (+25.6%), Greece (+21.9%), Canada (+18.7%) and Ireland (+17.7%) have been growing the most in terms of CAGR value (2019-2023).

The cheese products imported from the United States consisted of 88.3% regular cheese at a value of US$1.6 billion, followed by 6.3% of unripened/uncured fresh cheese, including whey and curd cheese (US$114.3 million); 2.9% of processed cheese, not grated or powdered (US$53.5 million); 2% of blue-veined and other veined cheese containing 'penicillium roqueforti' (US$35.6 million) and 0.6% of grated or powdered cheese (US$10.5 million) in 2023. Leading US States importing the highest amount of cheese and curd products over last year were New Jersey (66.7%), California (7.5%), Florida (5.4%), New York (5.2%), and Illinois (4.4%).

Canada's export performance - cheese and curd

In 2023, Canada exported a total value of Can$98.8 million of cheese and curd to the United States. As reported by Canada, the Canadian cheese and curd products being supplied to the United States consisted of 88.5% of regular cheese at a value of Can$87.4 million, followed by 10.4% of unripened/uncured fresh cheese, including whey and curd cheese (Can$10.3 million); 1% of blue-veined and other veined cheese containing 'penicillium roqueforti' (Can$1.0 million); 0.04% of processed cheese, not grated or powdered (Can$40,074) and a small amount of grated or powdered cheese of all kinds (Can$3,677) in 2023.

Butter and dairy spreads

In 2023, the top three suppliers of butter and dairy spreads (including other fats and oils derived from milk) to the United States were Ireland at a market share of 59.1% (US$366.3 million, 41.8 thousand tonnes), New Zealand at 22.3% (US$138.1 million, 20.2 thousand tonnes) and Mexico at 7.3% (US$45.1 million, 6.8 thousand tonnes) in 2023. Canada at a market share of 0.2% was the 14th largest supplier to the United States at a value of US$1.2 million (153.1 metric tonnes) in 2023; which has been decreasing by a value CAGR of 37% (2019-2023). Amongst the top 10 markets, American imports from New Zealand (+28.4%), Germany (+18.2%), France (+16%), India (+15.4%) and Ireland (+13.6%) have been growing the most in terms of CAGR value (2019-2023). Meanwhile, other declining markets along with Canada over the same period were Australia (−33.4%), Chile (−20.3%), Mexico (−5.9%), the Netherlands (−5.7%), and Finland (−5.7%).

In 2023, the butter and dairy spread products imported from the United States consisted of 81.6% butter (excluding dehydrated butter and ghee) at a value of US$505.8 million, followed by 14.9% of fats and oils derived from milk, and dehydrated butter and ghee (excluding natural butter, recombined butter and whey butter) at US$92.6 million; and 3.5% of dairy spreads of a fat content, by weight between 39% ≥ 80% (US$21.8 million). Leading US States importing the highest amount of butter and dairy spreads from the world over last year were Pennsylvania (34.3%), California (18.6%), New Jersey (15.6%), South Carolina (12.1%), and Texas (10.2%).

Canada's export performance - butter and fats / oils derived from milk

In 2023, Canada exported a total value of Can$1.6 million of butter and dairy spreads to the United States. As reported by Canada, the Canadian butter and dairy spread products being supplied to the United States consisted of 98.8% of fats and oils derived from milk, and dehydrated butter and ghee (excluding natural butter, recombined butter and whey butter at a value of Can$1,550.1 thousand, and the remaining 1.2% of butter (excluding dehydrated butter and ghee) at Can$19,327 in 2023.

Retail sales - organic vs non-organic cheese, butter and spreads

In 2022, retail sales of organic packaged food products in the United States totalled US$30.9 billion. The largest main organic food category with the highest sales was staple foods by a total share of 33.8% (US$10.5 billion) - especially organic baked goods (US$4.9 billion), organic processed fruit and vegetables (US$2.2 billion), and organic processed meat, seafood and alternatives (US$1.5 billion). These top organic staple food products grew at a high pace between 2019 and 2022, along with the organic rice, pasta and noodles category (CAGR: 15.5%).

The second highest main organic food category in terms of sales was dairy products and alternatives by a total share of 22.6% (US$6,994.4 million) - particularly, organic drinking milk products (including plant-based) at US$3.0 billion; organic cheese (US$1.2 billion), and organic yoghurt and sour milk products (US$798.0 million) in 2022. Within this organic dairy category, butter and spreads (CAGR: 5.4%), cheese (CAGR: 4.7%), and other dairy products (including chilled/shelf stable dairy desserts and snacks, coffee whiteners, condensed and evaporated milk, cream, fromage frais and quark) at a CAGR of 7.4% grew the most over the 4-year period (2019-2022).

Following closely behind in 2022, the third largest main organic food category was cooking ingredients and meals by a total share of 22.6% (US$6,991.3 million) - especially organic sauces, dips and condiments (US$3.2 billion) and organic meals and soups (including pizza, food kits, prepared salads) at US$2.9 billion. Along with these two top selling sub-categories, organic edible oils have been growing by the highest CAGR of 18.3% (2019-2022).

The organic snack category also, registered high sales accounting for a total share of 21.0% (US$6.5 billion) - particularly, for organic savoury snacks (including salty snacks, savoury biscuits, popcorn, pretzels, meat/seafood snacks, nuts/seeds/trail mixes) at US$3.0 billion, organic sweet biscuits, snack bars and fruit snacks (US$1.8 billion), and organic confectionery (including chocolate/sugar confectionery, gum) at US$1.0 billion in 2022. Between 2019 and 2022, organic chocolate and sugar confectionery (including gum) grew by the highest by a CAGR of 10%, while organic ice cream declined by a CAGR of 1.9% over the same period.

Organic vs. non-organic dairy products and alternatives - cheese, butter and spreads

Retail sales

In 2022, retail sales of organic cheese in the United States registered a total value of US$1.2 billion, growing historically by a CAGR of 4.7% between 2019 and 2022. Meanwhile, non-organic cheese sales totalled US$29.9 billion - thus, organic cheese sales accounted for approximately 3.9% in 2022. Non-organic cheese sales over the year consisted of 43.5% of hard cheese, followed by soft cheese (35.8%), spreadable cheese (11.2%), and processed cheese (9.4%).

In 2022, retail sales of organic butter and spreads in the United States registered a total value of US$665.4 million, growing historically by a CAGR of 5.4% between 2019 and 2022. Meanwhile, non-organic butter and spread sales totalled US$7.3 billion - thus, organic butter and spreads sales accounted for approximately 9.2% in 2022. Non-organic butter and spread sales over the year consisted of 69.6% of butter, 26.5% of margarine and spreads, and 3.9% of cooking fats.

In terms of hard cheese sales in 2022, consumers highest preference were for types such as Cheddar (56.2%), Colby Jack (12.1%), Parmesan (10.9%) and Swiss (8%). The most common soft cheeses with the highest sales over the year were Mozzarella (38%) and Feta (4.9%). Sales within spreadable cheese was most popular within the cream cheese category (87.3%) over reconstituted spreadable cheese (12.7%) in 2022.

According to Euromonitor in 2022, the most popular health and wellness (HW) claims used on organic cheese packagings were Keto (percentage of total SKUs: 28%) and good source of minerals (11%). The most common HW claims used on organic butter and spreads products were lactose free (25.3%), plant-based (22.9%), and dairy free (21.7%) in 2022.

Competitive landscape

In 2022, leading retail companies (brand) in the organic cheese category in the United States included Organic Valley Family of Farms (Organic Valley) at sales of US$281.9 million (23.9%), Albertsons Companys Incorporation (O Organics) at US$195.1 million (16.6%), and Kroger Company (Simple Truth) at US$121.9 million (10.4%). Private labels registered sales of US$141.5 million at a market share of 12.0% in 2022.

In comparison, leading retail companies (brands) in the non-organic cheese category in the United States included Kraft Heinz Company (Kraft, Philadelphia, Velveeta) at sales of US$6.7 billion (22.6%), Sargento Foods Inc. (Sargento) at US$1.5 billion (5.1%), and Tillamook County Creamery Association (Tillamook) at US$769.7 million (2.6%) in 2022. Private labels over the year registered sales of US$11.0 billion at a market share of 36.7%.

In 2022, leading retail companies (brand) in the organic butter and spreads category in the United States included Organic Valley Family of Farms (Organic Valley) at sales of US$118.5 million (17.8%), The Kroger Company (Simple Truth) at US$99.6 million (15%), and Miyoko's Kitchen Inc. (Wegman's) at US$96.6 million (14.5%).

In comparison, leading retail companies (top brands) in the non-organic butter and spreads category in the United States included Land O' Lakes Inc. (Land O' Lakes) at sales of US$1.5 billion (20%), Upfield Holdings BV (Country Crock, I Can't Believe It's Not Butter!, Imperial) at US$946.0 million (13%), and ConAgra Brands Inc. (Smart/Earth Balance, Blue Bonnet, Parkay) at US$495.4 million (6.8%) in 2022. Private labels over the year registered sales of US$2.0 billion at a market share of 28.3%.

Retail distribution channels

In 2023, store-based retailing distribution of non-organic cheese products totalled a market share of 90.8% mainly consisting of grocery retailers such as super/hypermarkets (77.8%), warehouse clubs (3.9%), discounters (3.2%), and small local grocers (2.8%). Between 2019 and 2023, warehouse clubs gained a larger share growing at a CAGR of 9%, while hypermarkets and supermarkets held onto large shares growing at CAGRs of 6.3% and 5.7%, respectively. Convenience stores (including forecourts) decreased in sales by a CAGR of 2.3% over the same period. Non-store e-commerce retailing for non-organic cheese products held a 9.2% market share in 2023, which has increased by a CAGR of 32.6% from online sales of US$942.3 million in 2019 to US$2.9 billion in 2023.

In 2023, store-based retailing distribution of non-organic butter and spreads totalled a market share of 88.5% mainly consisting of grocery retailers such as super/hypermarkets (71.8%), warehouse clubs (6.1%), discounters (4.5%), and small local grocers (2.9%). Between 2019 and 2023, warehouse clubs gained a larger share growing at a CAGR of 14.8%, along with discounters (+8.0%). Small local grocers decreased in sales by a CAGR of 3.6% over the same period. Non-store e-commerce retailing for non-organic butter and spread products held a 11.5% market share in 2023, which has increased by a CAGR of 68.3% from online sales of US$112.1 million in 2019 to US$899.0 million in 2023.

Product launch and trend analysis

Cheese and cheese products

Mintel indicated that there were at least 10,748 new packaged cheese and cheese food products (including new product, variety/range extension, packaging, formulation or relaunched) launched in the United States' supermarkets between the period of January 2019 and April 22nd, 2024. From these products, only 57 or 0.53% contain the wording of "organic cheese" found on its packaging ingredient list and/or product name. During this period, these new organic cheese products were found within the following sub-categories: 19.3% of hard/semi-hard cheese (11 products), 15.8% corned-based snacks (9), 12.3% meal kits (7), 12.3% pasta (7), 8.8% wheat and other grain-based snacks (5), 8.8% prepared meals (5), 5.3% pizzas (3); 3.5% per sub-category - baby savoury meals and dishes (2), savoury biscuits (2), sandwiches/wraps (2); and 1.8% per sub-category - soft/semi-soft cheese (1), baking ingredients and mixes (1), instant pasta (1), salads (1).

Locations of manufacture of these organic cheese products (when reported) included the United States (7), Italy (4), and Canada (1). The one Canadian "organic cheese-based" product launched in the American market in April 2023 was a new variety/range extension corn-based snack (Organic Cacio e Pepe Puffs). This Trader Joe's snack is made with organic ingredients such as a seasoning blend made from organic romano and cheddar cheese (organic milk, cheese cultures, microbial enzyme) and other organic cheese blends (organic buttermilk, nonfat dry milk, butter, sweet cream) - along with other organic ingredients.

Top companies launching new organic cheese products in the United States over the last year [Q2-2023 to Q1-2024] were Family Farmsted Dairy (2), Sprout Foods (11), Aldi Group (1), Publix (1) and Target (1). There have been no brand new organic brands appearing for the first time within the American market in the last six months.

In the United States, the declining flavours in these organic cheese packaged food products were macaroni and cheese (−100%) and cheddar cheese (−50%) between Q2-2022 and Q1-2024. New ingredients appearing in this market for the first time within the last 12 months included heavy cream and curd cheese.

Claims used on these "organic cheese" food products 100% of the time analyzed within the last three months were free from added/artificial flavourings, colourings or preservatives, ethical - toxins free, environmental friendly product, and GMO free. Declining claims by 100% between Q1-2023 and Q1-2024 included ease of use, microwaveable, gluten free, low/no/reduced allergen and hormone free.

Out of 10,748 new products containing cheese and cheese food products (including organic): top cheese ingredients by type were 65.8% cheese culture (7,072), 31.3% contained cheddar cheese (3,366), 23.3% parmesan cheese (2,503), 17.8% mozzarella cheese (1,908), 11% Romano cheese (1,184), and 8.6% cheese and cheese products (926). Out of the 57 products containing more specifically "organic cheese" as an ingredient: 61.4% of products contained organic cheese cultures (35), 56.1% cheddar cheese (32), 17.5% Mozarella cheese (10), 15.8% Ricotta cheese (9), 14% parmesan cheese (8), and 14% cheddar cheese powder.

Description of above image

• Cheese cultures: 7,072
• Cheddar cheese: 3,366
• Parmesan cheese: 2,503
• Mozzarella cheese: 1,908
• Romano cheese: 1,184
• Cheese and cheese products: 926
• Cream cheese: 786
• Ricotta cheese: 630
• Monterey Jack: 590
• Asiago cheese: 360
• Provolone cheese: 345
• Blue cheese: 334
• Cheddar cheese powder: 259
• Feta cheese: 242
• Aspergillus Oryzae: 231
• Swiss cheese: 223
• Pecorino Romano cheese: 217
• American cheese: 183
• Cheese powders: 174
• Cheese sauce: 168

Source: Mintel, 2024

Total item count: 10,748

Description of above image

• Cheese cultures: 35
• Cheddar cheese: 32
• Mozzarella cheese: 10
• Ricotta cheese: 9
• Cheddar cheese powder: 8
• Parmesan cheese: 8
• Romano cheese: 7
• Cheese sauce: 5
• Provolone cheese: 4
• Monterey Jack: 3
• Emmental cheese: 2
• Curd cheese: 2
• Fontina cheese: 2
• Hard cheeses: 2
• Colby cheese: 1
• Cream cheese: 1
• Pepper Jack cheese: 1

Source: Mintel, 2024

Total item count: 57

Butter and butter products

Mintel indicated that there were 6,404 new packaged butter and butter products, including butter substitutes (new product, variety/range extension, packaging, formulation or relaunched) launched in the United States' supermarkets between the period of January 2019 and April 30th, 2024. From these products, 124 or 1.9% contained the wording of "organic butter" (including organic cream, oil) found on its packaging ingredient list and/or product name. During this period, these 124 new products containing organic butter as an ingredient were found within the following food sub-categories: 25.8% meals and meal centers (32 products), 24.2% snacks (30), 17.7% chocolate confectionery (22), 10.5% dairy (13), 5.6% soup (7), 4.0% side dishes (5), 4.0% desserts and ice cream (5), 3.2% sauces and seasonings (4); 1.6% per sub-category - sugar and gum confectionery (2), sweet spreads (2); and 0.81% per sub-category - fruit and vegetables (1), bakery (1). Declining sub-categories by −100% were dairy between Q2-2023 and Q2-2024.

Locations of manufacture of these products containing organic butter as an ingredient (when reported) included the United States (37), Switzerland (2), Belgium (2), New Zealand (2), and Canada (1). The one Canadian product containing organic butter that was launched in the American market in April 2023 was the previously mentioned new corn-based snack made by Trader Joe's, also known for containing organic cheese as an ingredient (brand: Organic Cacio e Pepe Puffs).

Top companies launching new organic butter products (25) in the United States over the last year [Q2-2023 to Q1-2024] were Endangered Species Chocolate (4), CROPP Cooperative (4), Chocolove (3), Giant Eagle (3), Amy's Kitchen (2), and General Mills (2). New brands containing organic butter appearing for the first time within the American market in the last six months included Artisola Artisan Pasta and Sauces made by Valley Fine Foods (Cacio e Pepe ravioli) and Endangered Species Chocolate Dip'n Joy (chocolate batons and salted caramel).

In the United States, the declining flavours in these organic butter packaged food products were macaroni and cheese, chili pepper (Hatch/Pasilla), unflavoured/plain (−100%) and cheddar cheese (−66.7%) between Q2-2022 and Q2-2024. New ingredients appearing in this market for the first time within the last 12 months included vodka, hazelnut butter, and gelatin.

Claims used on these "organic butter" food products 100% of the time analyzed between Q1-2023 and Q1-2024 were ethical - environmental friendly product and ethical - sustainable (habitat/resources). Declining claims by −100% between this period, included functional - other, all natural product, low/no/reduced lactose, hormone free, and social media.

Out of 6,404 new products containing butter and butter products (including butter substitutes): top butter ingredients by type were 76.5% butter (4,896), 7.8% contained unsalted butter (499), followed by 7.3% butter fat (468), 7.0% butter oil (451), 2.6% salted butter (164), and 2.2% butter ghee (143). Out of the 124 products containing "organic butter" as an ingredient (when specified further): 93.5% organic butter (116), 6.5% butter in oil format (8), followed by 1.6% butter powder (2), 1.6% butter fat (2), and 0.81% in a butter ghee (1) format.

Description of above image

• Butter: 4,896
• Unsalted butter: 499
• Butter fat: 468
• Butter oil: 451
• Salted butter: 164
• Butter Ghee: 143
• Butter powder: 86
• Butter concentrate: 17
• Butter substitute: 15
• Anhydrous butterfat: 10
• Anhydrous butter: 8
• Garlic butter: 5
• Truffle butter: 3
• Butter solids: 2
• Ginger garlic butter: 2
• Scampi butter: 2
• Goat milk butter: 1

Source: Mintel, 2024

Total item count: 6,404

Product examples

Opportunities for Canada

Effective on June 17, 2009, Canada and the United States (U.S.) entered into an arrangement recognizing the national organic systems as being equivalent. The United States-Canada Organic Equivalency Arrangement (USCOEA) helps provide an overview of the terms regarding each country's import, labelling and certification requirements for the trade of organic live or unprocessed agricultural products for use as food (including vegetative propagating material and seeds for cultivation) that do not use food additives (are derived from any animal treated with antibiotics) or other ingredients (to the extent that their original forms can still be recognized), whose final processing^{Footnote 1} and handling (no concerns about sanitary risks) occurs within the United States or Canada.

Under the USCOEA, Canadian suppliers of organic processed products can export to the U.S., as long as they are accompanied by a valid organic certificate issued by a Canadian Food Inspection Agency (CFIA) accredited Certification body that includes the following attestation statement, "Certified in accordance with the terms of the U.S.-Canada Organic Equivalency Arrangement". The benefits of this arrangement helps to eliminate the need for costly dual certification, provides better control and oversight with experts at the point of origin and develops good working relationships between the two competent authorities. For more information on the United States labelling requirements, please visit the following websites: Organic labelling - USDA Agricultural Marketing Service and USDA - National Organic Program. Alternatively, all U.S. organic products imported into Canada and that may bear the Canada Organic Logo (if requested from the USDA accredited certification body) must meet the following CFIA - Canada's organic labelling requirements.

Further tariff information on the state of Canadian market access to the United States can be found through the Canada Tariff Finder.

For more information

The Canadian Trade Commissioner Service:

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

• Find a Trade Commissioner

More agri-food market intelligence:

International agri-food market intelligence
Discover global agriculture and food opportunities, the complete library of Global Analysis reports, market trends and forecasts, and information on Canada's free trade agreements.

Agri-food market intelligence service
Canadian agri-food and seafood businesses can take advantage of a customized service of reports and analysis, and join our email subscription service to have the latest reports delivered directly to their inbox.

More on Canada's agriculture and agri-food sectors:

Canada's agriculture sectors
Information on the agriculture industry by sector. Data on international markets. Initiatives to support awareness of the industry in Canada. How the department engages with the industry.

Resources

• Euromonitor International | November 2023. Country Report: Health and Wellness in South Korea
• Global Trade Tracker, 2024
• Mintel Global New Products Database, 2024
• The Canadian Food Inspection Agency – Organic product food labels and equivalence arrangements:
  • CFIA - Canada's organic labelling requirements
  • Organic labelling – USDA Agricultural Marketing Service
  • Overview: United States-Canada Organic Equivalency Arrangement (USCOEA)
  • USDA - National Organic Program

Customized Report Service – Cheese and butter (organic) food trends in the United States
Global Analysis Report

Prepared by: Erin-Ann Chauvin, Senior Market Analyst

© His Majesty the King in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2024).

Photo credits
All photographs reproduced in this publication are used by permission of the rights holders.
All images, unless otherwise noted, are copyright His Majesty the King in Right of Canada.

To join our distribution list or to suggest additional report topics or markets, please contact:

Agriculture and Agri-Food Canada, Global Analysis
1341 Baseline Rd, Tower 5, 3rd floor
Ottawa ON  K1A 0C5
Canada
Email: aafc.mas-sam.aac@agr.gc.ca

The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein.

Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of agriculture and agri-food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document.

Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge.