Cheese sector profile

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Description

Cheese is a concentrated food made from milk and/or cream, with or without adding milk ingredients. In the process of cheesemaking, the casein protein component of the milk is induced to coagulate. The network structure formed entraps the milk fat globules but allows much of the water and soluble components (whey) to drain out. Typically, casein coagulation is induced by a combination of acid production by starter culture organisms and also the action of the enzyme rennet. After coagulation, cheese undergoes a number of steps to separate the whey from the curd, followed by an aging step of variable length. The aging step allows characteristic flavour development due to microbial and enzyme activity. Cheese is produced from cow, goat, sheep or water buffalo milk, or a combination of them.

Canadian Production

The volume of cheese produced in Canada in 2024 amounted to 528,207 metric tonnes, with Cheddar and Mozzarella being the most common varieties. As seen in Figure 1, Canadian cheese production has increased with total cheese production going from 522,608 metric tonnes in 2020 to 528,207 metric tonnes in 2024. During this period, Specialty cheese saw an increase in production of 5% while the production of Mozzarella declined by 1% and Cheddar by 4%.

The production of processed cheese was 74,334 metric tonnes in 2024, a 6% increase from 2023 and an 3% increase over 2020.

Figure 1: Canadian Cheese Production in Metric Tonnes

* the specialty category does not include Mozzarella.
Source: Statistics Canada, Calculations done by the Dairy section of Agriculture and Agri-Food Canada

Trade

Canadian imports of cheese increased between 2020 and 2024, while exports decreased between 2020 and 2022 before rebounding thereafter. Canada imported 59,060 metric tonnes of cheese in 2024, a 46% increase compared to 2020. The United States, Italy and France were the top import sources for the period. In 2024, Canadian cheese exports reached 10,293 metric tonnes. They were 4% lower than in 2020 but they have recovered during this period after a significant decline in 2021. The main countries importing Canadian cheeses are generally the United States and Australia.

Figure 2: Cheese trade in Canada 2020-2024 in Metric Tonnes

Source: Statistics Canada, Calculations done by the Dairy section of AAFC

The Canadian Industry

Canada is one of the top cheese producers in the world, with a wide range of cheese varieties, including cheddar, mozzarella, and various specialty cheese. The main players in the Canadian cheese industry include both large and small-scale producers, with a mix of artisanal and industrial cheesemaking practices. Some of the largest players include:

Agropur Dairy Cooperative: This is a dairy business headquartered in Longueuil, Quebec, Canada. It is one of the largest dairy cooperatives in North America, with over 3,000 dairy farmers members and 8,800 employees. It produces a wide range of cheese varieties.

Lactalis Canada: This is a subsidiary of Lactalis Group, the world's largest dairy company based in France. The company employs more than 4,200 persons in Canada and produces a wide range of cheese varieties.

Saputo: Saputo is a Montreal-based dairy company and one of the largest cheese producers in Canada. It has operations in Canada, the United States, Australia, Argentina and the United Kingdom. The company has 6,000 employees in Canada and produces a wide range of cheese varieties.

The three players rank among the top 25 dairy processors globally.

Consumption trends

Per Capita Consumption

Total annual cheese consumption increased from 13.59 kg per capita in 2014 to 15.24 kg in 2024, a 12% increase for the ten-year period. Change is primarily due to increases in other cheeses consumption which went from 7.83 to 9.15 kg, a 17% increase.

Figure 3: Trends in Cheeses Consumption in Canada (kg per capita per year)

Source: Statistics Canada, Calculations done by the Dairy section of AAFC

Retail Sales

Retail cheese sales increased by 29% from $5.6 billion in 2020 to $7.2 billion in 2024, primarily due to increases in soft and hard cheese sales.

Table 1: Canadian Market Share (%) for Various Types of Cheese (based on value of retail sales)

In terms of market share by sub-product, hard and soft cheeses have the largest share of Canadian retail sales by value and have seen their market shares increase since 2020.

Between 2020 and 2024 the price of cheese increased by 18% based on the Consumer Price Index (CPI).  The CPI increased by 12% for cheddar and 13% for mozzarella. In 2024 the average monthly retail price of 500 grams block of cheese varied from $6.58 to $6.90, compared to a price range of $5.87 and $6.24 in 2020.  That price is based on the monthly sales of cheddar and mozzarella.

Annex 1: Cheese Profile Data