Here's Why Cheese Prices Are Rising

If you've noticed cheese prices creeping up on your weekly grocery trips, you're not alone. A grocery store staple that will cost more in 2025, cheese prices spiked by 15% in January alone, even though the industry expects to produce more than enough supply. It all comes down to increased demand, which sends prices surging regardless of supply expectations. The interesting part is that much of this demand comes from Asia. According to The Bullvine, the market has received 20% more export inquiries, especially from Asia, than usual.

Cheese isn't something you often see in most Asian fare, aside from the popular use of paneer in South Asian food (read this if you're wondering what paneer is and what it tastes like). However, the demand for cheese in Asia is steadily increasing with the rising popularity of Western foods and restaurants, especially among younger generations. IMARC Group estimates that the Asia Pacific cheese market will grow to $4 billion by 2032 — for context, it was at $2.2 billion in 2023.

Other factors are at play, too, like inflation driving up the cost of cheese production. Everything from feed for cows to milk costs and labor wages has increased, affecting the market pricing for cheese.

Another issue impacting the cheese industry is worry over a potential trade war. On February 1, the U.S. announced additional tariffs on imports from Canada, China, and Mexico — including up to 25% on dairy products. Canada and Mexico both responded with their own tariffs on American imports, and Canada has said it plans to add more goods to the list soon, including dairy products. Concerns over a looming trade war can affect the market and trickle down to cheese prices. 

The U.S. announced a temporary hold on these tariffs for 30 days in return for promises from Canada and Mexico to increase border and drug trafficking enforcement. The tariffs are still very much at play, though, and could continue to impact pricing because people aren't sure what to expect.

Interestingly, while cheese is having a great time on the market these days, butter is not doing so hot. Butter prices were at their lowest in 18 months in January, mainly because there is just so much surplus of cheap cream. That's some good news — butter is a savory staple in Parisian sandwiches, which may help you temporarily forget your cheese cravings.