According to industry analysts at RaboResearch, investments in US cheese and whey capacity are poised to result in significant production growth by 2026.
As the expansion of US milk production continues, substantial investments have been funneled into increasing cheese and whey capacity. This surge is expected to significantly boost production through the end of 2026, reports RaboResearch. The new supply is likely to be absorbed by rising domestic consumption and a growing demand from global export markets.In 2023, US per capita cheese consumption reached an all-time high, with exports reportedly achieving record levels in 2024. The growing zeal for protein consumption and health-conscious trends have driven whey complex prices to new heights, coupled with escalating exports. Although these trends support the growth in processing capacity, the near-term could experience a temporary market oversupply, leading to reduced cheese prices as the market adjusts to the increased output.Nonetheless, in the long term, these investments are expected to reinforce the US’s competitive edge in providing cheese and whey to the expanding global market. Lucas Fuess, a senior dairy analyst at RaboResearch, notes that consumer demand trends will continue to be favorable, painting a positive outlook for the future success of cheese and its valuable byproducts.
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