The Cheese Renaissance: State and Prospects of the Russian Cheese Market

On the Rise

Russia's cheese market today is one of the most dynamic segments of the food industry. In 2024, the country produced approximately 860,000 tons of cheese—7% more than the previous year and double the 2014 level of 384,000 tons. Consumption is also growing at a rapid pace: in 2024, it reached 1.13 million tons, or 7.9 kg per person. Cheese is increasingly securing its position as a staple product in the Russian diet.

Much of this growth was driven by the sanctions pressure that hit the dairy industry in 2014. Before the embargo, foreign cheeses accounted for roughly half of the Russian market; today, their share has dropped to 24%. As Maria Zhebit, Director of Public Relations at the National Dairy Producers Union (Soyuzmoloko), told Argument, it was precisely after the ban on imports of certain dairy products from non-CIS countries in 2014 that Russia saw an active investment cycle in cheesemaking begin. Still, imports continue to shape supply in niche categories.

"A high share of imports still remains in niche segments—blue cheeses, aged premium varieties, and certain functional ingredients. The main supplies of traditional cheeses come from Belarus, which remains Russia's key partner for dairy products. But across most mass-market categories, Russia is largely self-sufficient in meeting domestic needs," the expert emphasized.

Major Players vs. Small Cheese Makers

Following the 2014 embargo, several foreign cheese producers announced their departure from the Russian market in 2022, with their assets subsequently sold to Russian management. For example, the former Finnish producer Valio (Oltermanni and Viola brands) became part of Velkom Group, French company Danone sold its Russian business to Vamin R, and the Danish-Swedish cooperative Arla Foods became Natura.

With the exit of major foreign brands, the Russian cheese market has become highly consolidated: the 20 largest producers account for about 75% of total hard and semi-hard cheese output. Among the leaders maintaining steady positions are Yugovskoy Dairy Products Plant—approximately 44,700 tons in 2024, Foodland Group (31,600 tons), and Vamin Group (23,000 tons). That said, it would be incorrect to claim that local cheese makers have lost this battle.

Airat Mukhamadeev, Commercial Director of Vamin Group, responding to Argument's questions, noted that competition in the domestic market has always been high, so it's important for producers to differentiate through product "focus," since customers primarily rely on the taste and quality of cheese, and only then on price.