The Global Market For Cheese is Growing

Markets moved higher last week on the back of encouraging economic data. Inflation cooled, consumer sentiment improved, and U.S. households saw a significant increase in net worth. Meanwhile, an unexpected trend continued to gather steam: global cheese demand is accelerating, reshaping a major sector of the food economy.

Here's what investors and consumers need to know about both the financial and consumer trends shaping today's markets.

Key Market Highlights from the Week

1. Inflation Continues to Ease

The Consumer Price Index (CPI) showed annual inflation at 2.5% in August—lower than the 2.9% recorded in July and below economists’ expectations. Falling food and energy prices led the decline, even as core CPI, which excludes those volatile categories, rose by 3.2% year over year.

Among the categories still experiencing sharp increases:

Shelter: +5.2%
Auto Insurance: +16.5%

These figures indicate that while inflation pressures have broadly cooled, pockets of persistent price growth remain.

2. Consumer Sentiment Shows Continued Recovery

The University of Michigan’s Consumer Sentiment Survey found that public confidence continues to build. According to Director Joanne Hsu, “Year-ahead expectations for personal finances and the economy both improved… sentiment is now about 40% above its June 2022 low.”

However, optimism remains tempered by concerns around labor markets and the upcoming election. Notably, year-ahead inflation expectations fell for the fourth straight month to 2.7%.

3. U.S. Household Wealth Reaches Record Levels

The Federal Reserve reported that U.S. household and nonprofit net worth reached $164 trillion at the end of Q2 2024—nearly double the total from a decade earlier.

Real estate and stock ownership drove the bulk of the gains. Real estate values rose by $1.75 trillion, the most in a single year, and equity holdings increased by $662 billion, reflecting strong market performance.

Despite this growth, wealth inequality remains pronounced. The top 10% of U.S. households hold 67% of total wealth, while the bottom 50% hold only 2.5%, according to the St. Louis Federal Reserve.

4. Positive Week for Stocks and Bonds

Major U.S. indices finished the week higher, supported by falling bond yields and easing inflation. Treasury bonds also rallied as yields declined across all maturities.

These market movements suggest rising investor confidence heading into the final quarter of the year, even amid ongoing global uncertainties.

Cheese Leads Growth in Global Dairy Markets

While market watchers focused on inflation and equities, another economic story has been rising quietly: cheese consumption is booming.

According to Bloomberg, per capita cheese consumption in the U.S. has more than doubled since 1975, reaching 42 pounds per year. That’s more than the combined total for butter, ice cream, and yogurt.

Why Cheese Consumption Is Climbing

Several trends are driving cheese’s popularity:

Remote work has kept people closer to their kitchens, boosting snack-driven eating.
DIY meals during and after the pandemic sparked demand for ingredients like mozzarella and cheddar.
Social media platforms have popularized cheese-focused recipes, creating viral demand spikes for items like cottage cheese.

According to the USDA, rising demand for cheese is now one of the key forces shaping the entire U.S. dairy industry.

Most Popular Cheeses in the U.S.

Based on recent industry data, the top-selling cheeses in the United States include:

Cheddar
Mozzarella
Parmesan
American
Cream cheese

Interestingly, cottage cheese, once considered a retro item, has experienced a sharp rise in popularity. Creative recipes like high-protein flatbreads and frozen desserts have made it a staple in health-conscious diets. Circana data from May shows cottage cheese sales are up 13.5% year over year, totaling $1.33 billion.

Global Cheese Market Growth Outlook

Analysts at CoBank Knowledge Exchange project that the cheese snack market alone will grow at a 6.5% compound annual growth rate (CAGR) through 2034. This growth is not confined to the U.S.—cheese consumption is increasing worldwide, prompting American dairies to invest heavily in new production facilities.

Bloomberg reports that U.S. dairy producers are planning $4 billion in new cheese factories to meet domestic and international demand.

FAQ: Cheese and the Market

What is driving the increase in global cheese demand?
A mix of remote work, changing eating habits, recipe trends on social media, and growing international interest are all contributing to higher cheese consumption.

How much cheese does the average American eat each year?
About 42 pounds annually, which exceeds combined per capita consumption of butter, yogurt, and ice cream.

Which cheeses are most popular in the U.S.?
Cheddar, mozzarella, parmesan, American, and cream cheese rank among the top sellers.

Why is cottage cheese trending again?
Creative, high-protein recipes shared online have made cottage cheese a hit with health-conscious consumers and food influencers.

Is cheese growth affecting the dairy industry?
Yes. Cheese demand is now a leading factor shaping dairy production, infrastructure, and export strategy across the U.S.

Weekly Inspiration

“A cheese may disappoint. It may be dull, it may be naïve, it may be oversophisticated. Yet it remains cheese, milk's leap toward immortality.”

—Clifton Fadiman, television and radio personality

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https://www.federalreserve.gov/releases/z1/dataviz/z1/balance_sheet/chart/ (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2024/09-16-24_Bloomberg_US%20Household%20Net%20Worth%20Climbs%20to%20Record%20on%20Home%20Values%20Stocks_5.pdf)

https://www.bloomberg.com/news/articles/2024-09-12/us-household-net-worth-climbs-to-record-on-home-values-stocks?srnd=homepage-americas

https://www.stlouisfed.org/institute-for-economic-equity/the-state-of-us-wealth-inequality (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2024/09-16-24_Barrons_Data_7.pdf)

https://www.barrons.com/market-data

https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202409 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2024/09-16-24_Bloomberg_The%20Average%20American%20Eats%2042%20Pounds%20of%20Chees%20a%20Year_9.pdf)

https://www.bloomberg.com/news/articles/2024-09-06/us-dairies-plan-4-billion-in-new-cheese-factories?sref=hm8oMGrA

https://www.ers.usda.gov/topics/animal-products/dairy/background/

https://www.cobank.com/knowledge-exchange/dairy/dairy-products-have-more-growth-potential#:~:text=Globally%2C%20the%20cheese%20snack%20market,of%20the%2015%20dairy%20categories (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2024/09-16-24_Modern%20Retail_TikTok%20Ignited%20a%20Cottage%20Cheese%20Renaissance_12.pdf)