Scandinavian Cheese Market Size in 2019 is estimated to be $10.35 billion and the market is projected to be growing at a CAGR of 3.21% during the forecast period 2020-2025. Cheese is prominent in modern and traditional parts of Scandinavia. The best cheeses in the world come from Northern Europe and Scandinavia in particular. Most Scandinavian traditional dishes include mature, full-fat, camembert cheese, parmesan, and hard cheese. Countries such as Norway and Denmark are experiencing a rising demand for most dairy products, including cheese. Dairy regulations and versatility of cheddar cheese are the major factors driving the growth of the market. Furthermore, changing eating habits and increased development of various cheese varieties further increase the market demand for cheese.
- In 2019, Denmark accounts for a major share of the Scandinavian cheese market, by region, owing to the high domestic demand for dairy products. It is also the top cheese producing as well as consuming countries in Europe.
- Stringent dairy regulations and versatility of cheddar cheese are to aid in the market growth of Scandinavian cheese.
- Detailed analysis of the Strength, Weakness, and opportunities of the prominent players operating in the market will be provided in the Scandinavian Cheese Market report.
- Health consciousness among people is increasing and in turn, has reduced the consumption of unhealthy food. High fat and sodium content in cheese cause blood pressure, stroke, and other diseases, which has resulted in a decline in the number of people consuming cheese.
Product - Segment Analysis
Based on the Product, Scandinavian Cheese Market is segmented into natural cheese and processed cheese. Processed cheese is forecast to grow at CAGR of 2.89% during the forecast period 2020-2025. It is owing to the high demand for processed cheese in various applications across the foodservice and domestic sectors. Furthermore, the longer shelf-life of processed cheese, the resistance to separating when cooked and a uniform appearance of this cheese further contribute to its rising demand in various applications.
Source - Segment Analysis
Based on the source, the Scandinavian cheese market is segmented into cow milk, sheep milk, goat milk, buffalo milk, and others. Among these, the Cow milk segment dominated the Scandinavian Cheese market in 2019. Countries such as Sweden are major producers of cow milk. Swedish dairy farms produce 2.8 billion kg of milk per year according to the “Agri benchmark country report”. Moreover, well-established guidelines for animal safety and nurturing are also increasing dairy productivity while also ensuring the health of the livestock. Thus, high production of milk leads to high production of dairy products such as cheese which is high in demand as well.
Country - Segment Analysis
In 2019, Denmark accounts for a significant share of the Scandinavian Cheese market by country. This is an attribute to the factor that Denmark is a top consumer and producer of cheese in Europe. As per the World's Top Exports estimates, Denmark generated a revenue of $1.8 billion from its cheese exports in 2018. Thus, the country has high production and export of which enhances its dominance in the Scandinavian Cheese Market.
Drivers – Scandinavian Cheese Market
· Stringent Dairy Regulation
In Europe, dairy regulations are quite stringent. The entire process of production, processing, and consumption of milk is legally governed. With the help of these rules, harmful products, that can cause harm to livestock or result in infections, are prevented. This, in turn ensures high productivity of dairy which contributes to the growth of the Scandinavian Cheese Market. The consumers are also preferring domestically produced cheese over imported cheese as they are assured about its quality.
· Versatility of Cheddar Cheese
Cheddar cheese is the most consumed form of cheese in Scandinavia. This is mainly since the versatility of cheddar cheese makes it easy to be incorporated in various recipes. There is an increase in the availability of specialty cheese varieties that are used in creating various snacks & desserts. Increase in an adoption of foreign cuisine will also contribute to the increased use of cheese varieties such as cheddar, parmesan, mozzarella, feta, and others.
Challenges – Scandinavian Cheese Market
Cheese is high in fat and sodium content. There has been a rise in the number of diseases caused by high consumption of fat and sodium such as cardiovascular diseases, blood pressure, stroke and kidney diseases. Every year, 15 million people worldwide suffer from stroke according to the World Health Organization. As per the American Heart Association, Cardiovascular disease (CVD) is the world's leading cause of death, accounting for around 17.8 million deaths in 2017. Thus, people are more health-conscious and adopting a healthy lifestyle to prevent such diseases. This adoption of a healthy lifestyle and high health consciousness has led to a decline in the consumption of cheese, challenging the growth of this market.
Scandinavian Cheese Industry Outlook
Product launches, Merger & Acquisitions, joint ventures and R&D activities are key strategies adopted by players of the Scandinavian cheese market. Scandinavian Cheese top 10 companies are Lactalis Group, Dairy Farmers of America, Gebruder Woerle Ges, Friesland Campina, Arla Foods, Bongrain SA and Others.
· September 2019: Arla Foods amba, a Scandinavian multinational cooperative has established a public-private partnership in Nigeria to develop a sustainable dairy industry here.
· May 2019: Valio Sverige AB launched a plant-based cheese alternative to its Oddlygood series.