The specialty cheese market, expected to hit $41.1 billion by year’s end globally, is about to get a boost from challenger brands redefining what it means to enjoy cheese.
Domestically, these specialty leaders are outperforming their legacy counterparts, paving the way for brands of all sizes to gain ground. The Food Institute analysis of Circana grocery retail data found that these specialty brands are growing dollar sales at a rate that is nearly nine percentage points higher than legacy brands.
Source: The Food Institute analysis of Circana retail sales data, sourced July 15, 2025
The higher relative unit sales movement reinforces the fact that this growth is more than inflation. Instead, it represents a consumer behavior phenomenon wherein consumers are willing to trade up to “premium” alternatives in areas with a strong emotional resonance, such as indulgent cheese.
A recent McKinsey report highlighted this movement, finding that 44% of global consumers say they plan to splurge on purchases that provide immediate gratification (60% for Gen Z and Millennials).
For specialty brands, innovation tends to be more streamlined, requiring shorter lead times to merchandise on-trend items while also better able to fit unique offerings authentically into their portfolio.
In this vein, specialty cheeses are well-equipped to cater to this demand.
The top characteristics associated with specialty cheese include craving satisfaction (57%), comforting (48%), and indulgent (44%), according to a recent report from the Dairy Business Innovation Alliance (DBIA). Moreover, 59% of consumers are keeping their specialty cheese purchases consistent, while 28% are devoting even more market share to the vertical because of positive taste experiences, flavor diversity, and increased quality.
Cheese CPGs trying to gain market share need to make sure they’re delivering on these key characteristics.
The State of Specialty Cheese
USDA data projects total U.S. cheese production to hit 1.25 billion pounds by year’s end, up roughly 4% year-over-year. Supporting this influx are experimental specialty brands innovating on formats and package sizes and consumers eager to eat more cheese.
Specialty cheese innovation is partially the reason why unit and dollar sales of mixed milk and sheep milk cheeses are outpacing cow and goat milk bases. Sheep’s milk cheese dollar sales, for example, are up 9.8% year-over-year, while unit sales have risen 5.71% over the period, as of Circana data sourced July 15.
Nevertheless, the major culprits are still leading the specialty cheese market: cheddar, asiago, mozzarella, parmesan, and feta all account for at least 50% of consumers’ share of stomach in the past year, according to the DBIA report.
Industry tailwinds resulting from macrotrends shaping the industry also signal cheese’s continued rise. Cheese is a relatively healthy, high-protein item that is often associated with decadent experiences that consumers want at restaurants or at home. Think Instagrammable cheese pulls and nostalgic bites such as grilled cheese or mac and cheese that feature the ingredient.
This is likely driving growth for better-for-you mac and cheese brand Goodles, with a portfolio that features smoked gouda, parmesan, asiago, and cheddar cheeses in a heightened format (i.e. Cacio è Pepe box mac). The brand leverages a high-protein spin, fiber and prebiotics, and a lack of artificial flavoring with a Clean Label Project award to match, signaling other brands to communicate their natural health claims.
Di Bruno Bros. is another brand leveraging innovation in its premium private label portfolio, offering wine and cheese parings directly in the spread, as with its Pinot Grigio & Fig or Smoked Gouda & Beer Cheese Spreads.
The Food Institute Podcast
It’s a big world out there – what trends are percolating on the global scene? JP Hartmann, director of Anuga, joined The Food Institute Podcast to discuss the intersection of U.S. and international trends and how the Anuga show is one not to miss.
