If you have shopped for groceries in recent years, you may have noticed empty shelves where cream cheese usually sits. This shortage, while surprising for a classic item, has deeper reasons than just a hiccup at the factory. For restaurants, bakeries, and small businesses, cream cheese is a foundation for many products, from cheesecakes to bagels and dips. Even if your business relies more on other dairy products, it is vital to understand the causes behind these shortages so you can adapt when similar problems happen.
Impact of Cyberattacks on Cream Cheese Supply
One of the biggest disruptions came from a cyberattack on Schreiber Foods, a key player in the U.S. cream cheese market. In late 2021, a ransomware incident brought their production to a sudden halt for five days. These five days were enough to send shockwaves across multiple states, impacting everyone from large distributors to neighborhood bakeries.
When a key plant can’t process or ship cream cheese, the effect is immediate. Milk deliveries stop, scheduled trucking gets delayed, and orders up and down the supply chain are missed. For a fresh product like cream cheese, delays mean you cannot simply stockpile inventory for a rainy day. This incident forced milk destined for cream cheese to be rerouted, often toward making butter or other dairy goods instead. If your operations involve working with perishable items, this shows how a single breach can disrupt an entire chain—so you may want to review your own cybersecurity measures, too.
Challenges with Packaging Availability
Another area you need to consider is packaging. During the height of the shortage, many suppliers could not source enough large plastic tubs to hold and transport cream cheese. Since these tubs are specially manufactured for dairy handling, switching to a substitute is not always practical or permitted, depending on food safety rules in your state.
If you run a food business, you know how a missing packaging component can create just as many headaches as a missing ingredient. Distributors faced backlogs because, even when cream cheese was produced, there was nowhere to put it for safe delivery. It is a reminder to maintain good relationships with packaging providers and consider dual sourcing whenever possible.
Rise in Consumer Demand
Consumer habits shifted dramatically during and after the pandemic. More people started cooking and eating breakfasts at home, driving up demand for spreads like cream cheese. Cheesecakes and other desserts became comfort foods, especially during the holiday season, which already brings an annual spike in cream cheese sales.
If you operate a bakery or sell cheesecake, you probably noticed demand outpacing your forecast during these periods. Increased home consumption may sound great from a business perspective, but if suppliers can’t keep up, you may be forced to change menus or substitute ingredients at the last minute. This illustrates why tracking consumer trends and staying in close contact with suppliers has become so important.
General Supply Chain and Labor Challenges
Another challenge to account for is labor and ingredient shortages across the food supply chain. Starting in 2020, businesses faced an ongoing shortage of truck drivers, particularly those with dairy transport certifications. Even if product and packaging are available, getting them where they need to go became harder.
On top of that, other ingredients used in cream cheese—like certain starches and thickeners—also became scarce at times. If you run a business that relies on fresh, short-shelf-life items like cream cheese, disruptions anywhere along the way can create immediate headaches. Be sure to review your contracts with carriers and suppliers, and consider building buffer time into your order cycle, depending on your usual demand.
Volatility in Dairy Production Trends
There have also been several pressures on milk and dairy production costs since 2020. Unpredictable weather patterns can increase the price and availability of grains and feed, which directly impacts dairy producers. When feed prices spike, smaller local dairies sometimes scale down or even close. By 2025, the U.S. has experienced several waves of smaller dairies exiting the market, shrinking the supply of raw milk available for processing.
If your region or supply network relies on small or local dairies, keep an eye on market reports about feed prices and weather impacts. In some cases, you may need to explore new relationships with regional producers or consider adjusting your menu offerings if price spikes make certain products unsustainable.
Market Adjustments and Priorities in Dairy Production
As dairy shortages and supply uncertainty continued, many producers shifted priorities. The industry began channeling more of the nation’s milk fat into making butter, which has a longer shelf life and strong market demand. This is a common pattern in food production: when one product’s supply chain becomes complicated, manufacturers move resources to items that are easier to store or ship.
For businesses, this means that even in a stable dairy market, shortages of specific items like cream cheese can persist. If you are affected, it may be useful to talk with your distributor about how they allocate their own orders and what substitutions might work if one product becomes unavailable.
Overview of Current Market Status in 2025
By early to mid-2025, overall dairy production in the U.S. is reasonably stable. Supermarkets carry most essentials, but certain dairy products like cream cheese are still harder to find in some regions. The market is not facing total shortages everywhere, but local disruptions can appear unexpectedly, especially if trucking issues or bad weather strike.
If your small business depends on cream cheese or similar items, it is smart to keep up with regional trends. In some states, large chains may get first priority for limited distribution, which can leave independent food businesses scrambling. Make a habit of checking with your main supplier each week—or at least ahead of major holidays. This kind of proactive checking helps you avoid last-minute problems when you have a big order or event on the line.
Another area businesses now focus on is formal supply chain diversification. By working with more than one distributor or maintaining a short list of backup sources, you reduce your risk of disruption. For more guidance on supplier relationships, food businesses sometimes consult industry resources such as Redwire Business for practical advice and networking opportunities.
Conclusions and Future Outlook
The cream cheese shortage has shown just how connected and fragile modern supply chains can be. Problems that start in one area—such as a cyberattack or missing delivery—can ripple out until basic ingredients become hard to find. Since cream cheese is so central to both home kitchens and commercial food service, any interruption quickly gets noticed.
Once you have seen how many factors—from cyber security and packaging to trucking and weather—can collide, you are better prepared to step up contingency planning in your own business. It is not just about switching brands at the last minute. Review your regular purchasing policies, check your emergency plans, and confirm alternative suppliers’ availability before you actually need them. Keep documentation of your contracts and review them annually to stay ahead of potential shocks.
Looking ahead, most experts agree that while the wild fluctuations of 2021-2022 are in the past, some level of unpredictability remains. Specific items like cream cheese may face limited regional outages, particularly if consumer demand spikes or another supply chain incident happens. Depending on your state or business type, you may need to adjust ordering habits, explore new recipes, or simply provide clear communications to your customers during shortages.
Regardless of the current situation, clear planning and direct communication with suppliers can help your business ride out the ups and downs. Even when the next surprise hits, you will have a process in place for quick decision-making and customer updates. Keep abreast of market signals, stay on good terms with suppliers, and ensure your internal team knows how to manage disruption. Being proactive will keep your shelves—and your customers—happier in the long run.
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