Cheese, butter and yoghurt consumption in Australia - Data and Analysis (1991-2034)

IBISWorld forecasts cheese, butter and yoghurt consumption to rise by 0.7%, to 27.5 kilograms per capita in 2026-27. Yoghurt is expected to remain the main growth driver, as health-conscious consumers continue adding Greek and natural-style varieties to their diets. Rising interest rates and persistent inflationary pressures are expected to keep households price-conscious, limiting the scope for robust gains in consumption. Still, as dairy products are everyday staples, households are expected to trade down to more affordable private-label or imported cheese rather than cut back on volumes, supporting overall consumption this year.Cheese remains the most consumed dairy product, accounting for around half of the volume of non-milk dairy products consumed annually. Cheese consumption reached a record 14.8 kilograms per capita in 2023-24. Consumption rose sharply in 2021-22 as rising disposable incomes encouraged consumers to spend more. A robust recovery in the hospitality sector has also supported demand from food service channels. Consumer demand has increasingly switched away from traditional cheddar to other varieties, like feta and mozzarella, thanks to food service demand. Inflationary pressures have encouraged consumers to opt for lower-cost options, lifting the presence of cheaper imported cheese on supermarket shelves over the past few years. This trend has supported overall per capita cheese consumption amid cost-of-living pressures. However, Australia's shrinking milk pool continues to limit dairy producers' output. In response to the elevated farmgate milk prices, processors have increasingly prioritised cheese production, as favourable international prices have made it an attractive revenue stream.Per capita butter consumption has fluctuated over the past five years, but has remained relatively stable overall. Falling dairy cattle numbers amid poor weather conditions have constrained milk supply, with butter production falling sharply in 2022-23 before recovering. However, this fall in domestic butter supply has been offset by rising import volumes, with butter imports reaching a record in 2022-23. These have largely come from New Zealand, where prices are currently more affordable than in Australia, encouraging consumption.Yoghurt consumption has risen steadily over the past five years. Australians have become increasingly health-conscious over the past five years, with a growing share of consumers seeking natural, unprocessed foods. Consequently, probiotic, Greek and natural-style yoghurts have become more popular with consumers over the period, outpacing growth in demand for flavoured yoghurt. Overall, IBISWorld forecasts cheese, butter and yoghurt consumption to rise at a compound annual rate of 0.2% over the five years through 2026-27.