Asia Cheese Market Size, Share & Industry Analysis, By Source (Animal-based and Plant-based), By Product Type (Natural Cheese [Cheddar Cheese, Mozzarella Cheese, Parmesan Cheese, Cream Cheese, and Others], Processed Cheese, and Plant-based Cheese), By Format (Block, Slices, Shredded/Grated, Cubes/Diced, and Others), By Distribution Channel (B2C [Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, and Online Retail] and B2B [Foodservice and Food Processing]), and Regional Forecast, 2026–2034

The Asia cheese market size was valued at USD 7,552.21 million in 2025. The market is projected to grow from USD 7,913.63 million in 2026 to USD 12,549.39 million by 2034, exhibiting a CAGR of 5.93% during the forecast period.

Cheese consumption in Asia is transitioning from a niche, imported dairy product to a mainstream ingredient driven by urbanization, rising disposable incomes, Western-style diets, and rapid expansion of foodservice, bakery, and quick-service restaurant (QSR) chains. While per-capita cheese consumption remains significantly lower than in Europe or North America, volume growth is structurally strong, supported by population scale and dietary diversification. Growth is particularly concentrated in China, India, Japan, South Korea, Southeast Asia, and Singapore, where cheese is increasingly used as a functional ingredient in pizzas, burgers, sandwiches, bakery items, snacks, and ready-to-eat meals rather than as a standalone table cheese. The market is also benefiting from localized product innovation, including low-melt mozzarella for Asian pizzas, mild cheddar blends, and processed cheese formats adapted to local taste profiles.

The Asia cheese market is dominated by major players, including Yili Group, Mengniu Dairy, Meiji Holdings, Amul (India), and Fonterra Co-operative Group Limited. Strategically, these players focus on local manufacturing, foodservice partnerships, value-added processed cheese, and affordable pack sizes, positioning cheese as an everyday food rather than a luxury import.

Asia Cheese Market Trends

Growth of Plant-Based Cheese in Urban Asia to Shape Industry Development

The surge in plant-based food consumption across urban Asia is emerging as a key growth driver within the broader Asia Pacific cheese market, particularly among younger demographics, health-conscious, and flexitarian consumers. According to the Good Food Institute (GFI), the Asia Pacific is identified as one of the fastest-growing regions for alternative protein adoption. Soy, almond, and cashew-based cheeses are gaining traction in Japan, South Korea, Singapore, and China, driven by flexitarian diets and lactose intolerance. Though still a small base, plant-based cheese shows double-digit growth, particularly in premium retail and foodservice applications. Players in the region are coming up with innovative launches to meet the increasing product demand.

• For instance, in May 2023, Zrou, a plant-based meat brand from China's Youkuai Group International, partnered with Beijing-based distributor Usource to expand distribution across northern China, including Beijing and Tianjin. The products would include a range of cheeses, including shredded mozzarella, sliced cheddar, chèvre, and dulce de leche.

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MARKET DYNAMICS

Market Drivers

Westernization of Diets and Urban Food Consumption Supporting Market Expansion

The westernization of diets across Asia, accelerated by rapid urbanization and rising disposable incomes, is a core driver supporting long-term the Asia cheese market growth. Urban consumers, particularly millennials and Gen Z, are increasingly adopting Western-style eating habits, including pizzas, burgers, sandwiches, pasta, baked goods, and café-style foods, categories in which cheese is a foundational ingredient.

• According to UN DESA and national statistical offices, Asia’s urban population increased from 50% in 2015 to over 56% by 2024, translating into hundreds of millions of new urban consumers with access to modern retail, QSRs, and cold-chain-enabled food distribution. This shift has boosted the Asia cheese market demand in metropolitan areas across China, India, South Korea, Indonesia, and Vietnam.

Market Restraints

High Production Costs and Limited Economies of Scale to Restrain Market Development

High production costs and limited economies of scale remain a key restraint for the Asia cheese market, particularly when compared with mature cheese-producing regions such as Europe and North America. Cheese manufacturing is capital-intensive, requiring large volumes of standardized milk, specialized processing equipment, cold storage, aging facilities, and skilled technical expertise. In Asia, cheese production is still developing in many countries, resulting in higher per-unit costs and reduced pricing flexibility.

• For instance, producing 1 kg of natural cheese typically requires 9-10 liters of milk, making raw milk a dominant input factor. In price-sensitive Asian markets, fluctuations in milk procurement prices, often driven by feed cost inflation, climate variability, and fragmented dairy farming, directly inflate cheese production costs and compress margins.

Market Opportunities

Rising Use of Cheese in Bakery, Snacks, and Processed Foods Unlocking New Growth Avenues

The expanding use of cheese as a functional and flavor-enhancing ingredient in bakery products, savory snacks, and processed foods is unlocking significant new growth avenues for the Asia cheese market. Cheese is increasingly valued by food manufacturers for its melting properties, texture enhancement, umami flavor contribution, and protein content, making it a preferred ingredient in products such as cheese-filled breads, croissants, buns, crackers, extruded snacks, sauces, frozen meals, and ready-to-eat foods. This trend is further reinforced by changing lifestyles and urban consumption patterns. With rising working populations and demand for convenience foods, cheese serves as a value-added ingredient that enhances taste and nutritional perception in processed products.

• According to the United States Department of Agriculture (USDA), China's food processing sector showed steady growth in 2023, with its production value increasing by 2.9% over the previous year.

SEGMENTATION ANALYSIS

By Source

Animal-Based Segment to Lead, Driven by Well-Established Dairy Farming Systems

On the basis of source, the Asia cheese market is segmented into animal-based and plant-based cheese.

The animal-based segment continues to dominate the Asia cheese market, accounting for approximately 95.63% of the total market value in 2025, supported by well-established dairy farming systems, mature processing infrastructure, and deep integration into foodservice and industrial applications. Cow milk-based cheese remains the primary source due to consistent supply, cost efficiency, and functional suitability for processed and natural cheese formats used in QSRs, bakeries, and packaged foods.

The plant-based cheese segment is expected to witness strong growth at a CAGR of 11.27% in the forecast period.

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By Type

Natural Cheese Segment Dominated, Driven by Rising Consumer Preference for Minimally Processed Dairy Products

On the basis of type, the market is segmented into natural cheese, processed cheese, and plant-based cheese.

The natural cheese segment held the dominant share, valued at USD 5,864.47 million in 2025, accounting for 77.65% of the Asia cheese market share. Natural cheese dominates the Asia cheese market, supported by its widespread use in bakery, foodservice, and premium retail applications, particularly in developed Asian economies. Countries such as Japan, South Korea, and urban China exhibit strong demand for natural cheese varieties, including mozzarella, cream cheese, cheddar, and specialty cheeses, driven by home baking trends, café culture, and rising consumer preference for minimally processed dairy products.

Plant-based cheese, while currently representing a relatively small share of the overall market, is expected to register the fastest CAGR of 11.27% during the forecast period, supported by rising adoption of flexitarian, vegan, and lactose-free diets in urban areas.

By Format

Shredded/Grated Cheese Segment to Lead the Market, Driven by Ease Of Handling

On the basis of format, the market is segmented into block, slices, shredded/grated, cubes/diced, and others.

The shredded/grated cheese segment dominates the Asia cheese market, accounting for 39.80% share of total consumption, primarily due to its extensive use in pizzas, baked products, ready-to-eat meals, and foodservice applications. Shredded cheese offers portion control and ease of handling, making it the preferred format for QSR chains, industrial bakeries, and processed food manufacturers. Rapid expansion of pizza outlets and bakery chains across China, India, Southeast Asia, and South Korea has significantly increased demand for shredded mozzarella and blended cheeses, reinforcing the segment’s leadership position.

The slices segment is expected to grow at a significant rate, at a CAGR of 6.16% during the forecast period, supported by rising consumption of burgers, sandwiches, breakfast items, and convenience foods across urban Asia.

By Distribution Channel

B2B Segment Leads the Market, Driven by Large-Scale Procurement from QSRs

On the basis of the distribution channel, the market is segmented into B2C and B2B.

The B2B distribution channel dominates the Asia cheese market, accounting for 56.69% of total demand, supported by large-scale procurement from QSRs, industrial bakeries, snack manufacturers, and ready-to-eat food producers. Cheese is primarily consumed as an ingredient rather than a standalone retail product in many Asian markets, reinforcing B2B channel leadership.

The B2C segment is growing at a significant rate of CAGR 6.23%, supported by supermarket expansion, improved cold-chain logistics, and rising household adoption in urban areas.

Cheese Market Regional Outlook

Regionally, the Asia cheese market is analyzed across China, India, Japan, South Korea, the Philippines, Malaysia, Indonesia, Singapore, Thailand, Vietnam, and the Rest of Asia.

China Cheese Market

China represents the largest cheese market share in Asia, expanding from USD 2,634.47 million in 2025 to USD 4,748.68 million by 2034, growing at a CAGR of 6.89% (2026–2034). Growth is driven by increasing cheese usage in bakery, QSR, and ready-to-eat foods, supported by domestic production scale-up and localization of cheese formats for pizzas, snacks, and Western-style food offerings.

India Cheese Market

India is among the fastest-growing cheese markets in the region, with market size rising from USD 665.31 million in 2021 to USD 1,881.89 million by 2034, registering a robust CAGR of 8.37%. Expansion is supported by rapid growth in pizza chains, cafés, and urban foodservice, alongside rising household adoption of processed cheese and mozzarella in tier-1 and tier-2 cities.

Japan Cheese Market

Japan remains a mature but stable cheese market, growing from USD 1,386.38 million in 2021 to USD 2,111.65 million in 2034, at a CAGR of 3.34%. Demand is largely driven by bakery, confectionery, and premium foodservice applications, with limited upside from volume growth but steady value growth from premium and specialty cheese segments.

COMPETITIVE LANDSCAPE

Key Industry Players

Leading Players Focus on Increasing their Processing to Remain Competitive in Price-Sensitive Markets

The Asia cheese market is moderately consolidated, with competition primarily driven by scale of operations, localized product portfolios, and deep integration with foodservice and bakery channels. Leading players leverage cost efficiency through domestic milk procurement, large-scale processing, and optimized packaging to remain competitive in price-sensitive markets. Strategic emphasis on processed cheese formats enables manufacturers to serve QSRs, industrial bakeries, and packaged food companies with consistent, application-specific solutions. In parallel, regional players strengthen market position through extensive distribution networks, private label manufacturing, and partnerships with international foodservice chains, while selectively expanding into premium and natural cheese segments in developed urban markets.

Key Players in the Cheese Market

List of Key Cheese Companies Profiled

• Yili Group (China)
• China Mengniu Dairy Company (China)
• Meiji Holdings Co., Ltd. (Japan)
• Morinaga Milk Industry Co., Ltd. (Japan)
• Amul (GCMMF) (India)
• Mother Dairy (NDDB Group) (India)
• PT Frisian Flag Indonesia (Indonesia)
• Vinamilk (Vietnam)
• Fonterra Co-operative Group Limited (New Zealand)
• Parag Milk Foods Ltd (India)

KEY INDUSTRY DEVELOPMENTS

• August 2025: Paras Dairy expanded its Galacia Cheese brand into West and South India, targeting key cities such as Mumbai, Ahmedabad, Bengaluru, Chennai, and Hyderabad to boost its national footprint. This move strengthens its HORECA (Hotel, Restaurant, and Catering) presence, scaling from over 500 outlets.
• April 2025: Britannia The Laughing Cow, through its joint venture Britannia Bel Foods, launched a revamped cheese range locally manufactured in India. The updated products feature a creamier taste, smoother texture, and recipes blending French expertise with Indian preferences, produced at a new facility in Ranjangaon, Maharashtra.
• March 2025: Paras Dairy, under VRS Foods Limited, launched its premium cheese brand Galacia at the AAHAR 2025 exhibition in New Delhi. This entry targets both household and foodservice markets with cheese made from high-quality cow milk sourced from select farms and produced at a state-of-the-art plant in Newasa, Ahmednagar, Maharashtra.
• March 2025: Fonterra recently launched two new cheese ingredients, Cheddarsan and Low Salt Mozzarella curd, at a Shanghai food event to target growing demand in China's snack market. These products support local applications such as cheese slices, sausages, and string cheese, aligning with rising cheese consumption driven by Western influences and fusion dishes.
• July 2023: South Korea's Armored Fresh, a food tech company, launched oat milk-based cheese slices designed to mimic the taste and texture of conventional dairy cheese. This plant-based innovation targets food service initially, with plans for wider retail expansion. The product aligns with growing demand for dairy-free alternatives in the food sector.

REPORT COVERAGE

The Asia cheese market industry report analyzes the market in depth and highlights crucial aspects such as Asia cheese market trends, market dynamics, prominent companies, investment in market research and development, and end-use. Besides this, the report also provides insights into the market analysis and highlights significant industry developments.

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