Cheese Manufacturing in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: May 2024
ANZSIC C1133aRevenue
$3.6bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
3,516
Businesses
116
Wages
$XXX.Xm
Cheese Manufacturing in Australia industry analysis
Cheese manufacturers have faced a range of challenges over the period. Varying cheese prices in export markets, a fluctuating Australian dollar, falling local raw milk production and shifting local consumer preferences have all influenced revenue performance. Domestic per capita cheese consumption has increased over the past five years. However, local consumer preferences have shifted from traditional cheddar varieties towards specialty cheeses, like fetta. These cheeses carry price premiums, boosting revenue. Overall, revenue is expected to drop at an average annual 0.8% through the end of 2023-24, to $3.6 billion. The COVID-19 pandemic negatively affected the industry. Revenue fell over the two years through 2021-22, weakened in part by declining food service demand due to government COVID-19 restrictions. However, increased sales through retailers partially offset this trend. Revenue is expected to rise 1.5% in 2023-24, due to rising sales volumes and climbing domestic prices.
Trends and Insights
- Export demand has weakened over the past five years. Demand was weakened by the COVID-19 pandemic and has been compounded by the rising price of Australian dairy due to a falling raw milk supply and weak global economic conditions.
- Hard-grating cheese production has surged over the past five years. Changing consumer preferences are favouring specialty cheese varieties like parmesan and romano.
- Victoria accounts for the largest share of cheese producers in the country. The state is the largest upstream dairy farming state and the raw milk collected is largely used for non-drinking milk dairy products.
- Market share concentration is moderate. Saputo and Fonterra have bolstered their market size through the acquisitions of companies like Lion’s speciality cheese business (Saputo) and Victoria-based cheese manufacturer, Dairy Country (Fonterra).
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 0.8 % over the past five years, to reach an estimated $3.6bn in 2024.
Trends and Insights
Volatile global conditions have weighed on volume of demand and revenue in export markets
- Exports have declined due to a combination of global and local supply variations, shifting cheese market demands, and fluctuating global cheese prices.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Falling milk production and decling world cheese prices are forecast to depress revenue
- According to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), cheese production is projected to decline through the end of 2028-29. This is set to be driven lower by a falling milk supply, as the dairy farming industry continues to shrink.
Biggest companies in the Cheese Manufacturing in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Saputo Dairy Australia | 913.1 | |
Bega Group | 857.6 | |
Fonterra Co-op Group | 383.5 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Cheddar cheese, Semi-hard and stretch cheese and Fresh cheese. Cheddar cheese is the largest segment of the Cheese Manufacturing in Australia.
Trends and Insights
Growth in cheddar cheese production is slowing as demand for premium cheese varieties grow
- Cheddar cheeses are typically sold as mild, medium, sharp, extra-sharp varieties. Tasty cheese is cheddar cheese that has been aged for a year.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Butter and Dairy Product Manufacturing in Australia
Complementors
- Dairy Cattle Farming in Australia
- Dairy Produce Wholesaling in Australia
- Supermarkets and Grocery Stores in Australia
- Convenience Stores in Australia
International industries
- Global Cheese Manufacturing
- Dairy Product Production in the US
- Cheese Production in the US
- Dairy Product Production in Canada
- Cheese, Butter and Milk Powder Manufacturing in New Zealand
Table of Contents
About this industry
Industry definition
Industry operators primarily manufacture cheese.
What's included in this industry?
Fresh cheeseHard-grating cheeseSemi-hard and stretch cheeseCheddar cheeseMould ripened cheeseCompanies
Saputo Dairy AustraliaBega GroupFonterra Co-op GroupPurchase this report to view all 3 major companies in this industry.
Related Terms
EVERYDAY CHEESESPECIALTY CHEESEPRIVATE-LABEL PRODUCTSIndustry Code
ANZSIC 1133 - Cheese Manufacturing in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Export demand has weakened over the past five years. Demand was weakened by the COVID-19 pandemic and has been compounded by the rising price of Australian dairy due to a fal...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Hard-grating cheese production has surged over the past five years. Changing consumer preferences are favouring specialty cheese varieties like parmesan and romano.
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Victoria accounts for the largest share of cheese producers in the country. The state is the largest upstream dairy farming state and the raw milk collected is largely used f...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Market share concentration is moderate. Saputo and Fonterra have bolstered their market size through the acquisitions of companies like Lion’s speciality cheese business (Sap...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The major cheese manufacturers have grown market share through acquisition. For example, Bega Cheese acquired the rights to Mondelez International’s Kraft Singles manufacturi...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Saputo Dairy Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Bega Group's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Fonterra Co-op Group's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Saputo Dairy Australia, and factors influencing its performance in the industry
- Description and key data for Bega Group, and factors influencing its performance in the industry
- Description and key data for Fonterra Co-op Group, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Cheese manufacturers must abide by the Australia New Zealand Joint Food Standards Code. The code sets standards around production methods and nutritional content.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit margins have declined over the past five years. Cheese manufacturers have faced steeply rising farmgate milk prices amid a plunge in the raw milk supply.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Cheese Manufacturing industry in Australia in 2024?
The market size of the Cheese Manufacturing industry in Australia is $3.6bn in 2024.
How many businesses are there in the Cheese Manufacturing in Australia industry in 2024?
There are 116 businesses in the Cheese Manufacturing industry in Australia, which has declined at a CAGR of 0.0 % between 2019 and 2024.
Has the Cheese Manufacturing industry in Australia grown or declined over the past 5 years?
The market size of the Cheese Manufacturing industry in Australia has been declining at a CAGR of 0.8 % between 2019 and 2024.
What is the forecast growth of the Cheese Manufacturing industry in Australia over the next 5 years?
Over the next five years, the Cheese Manufacturing industry in Australia is expected to decline.
What are the biggest companies in the Cheese Manufacturing market in Australia?
The biggest companies operating in the Cheese Manufacturing market in Australia are Saputo Dairy Australia, Bega Group and Fonterra Co-op Group
What does the Cheese Manufacturing in Australia include?
Fresh cheese and Hard-grating cheese are part of the Cheese Manufacturing industry.
Which companies have the highest market share in the Cheese Manufacturing in Australia?
The company holding the most market share in Australia is Saputo Dairy Australia.
How competitive is the Cheese Manufacturing industry in Australia?
The level of competition is high and increasing in the Cheese Manufacturing industry in Australia.
