The objective of this study was to quantitatively assess the consumer perception of fat reduction in cheese. Choice-based conjoint analysis surveys for Cheddar and mozzarella cheeses (n = 179 and 171 consumers, respectively) were developed using results from focus groups conducted with users and nonusers of lower fat cheeses. Factors investigated were fat content, flavor, texture and price of cheese. Relative importance of product attributes was determined through a realistic trade-off scenario. Consumer acceptance testing (n = 101) was then conducted on Cheddar and mozzarella cheeses with varying levels of fat reduction. Conjoint analysis results suggested that a 2% milk Cheddar cheese would be most appealing among fat reduced Cheddar cheeses and that a part-skim mozzarella would be more appealing than a fat-free mozzarella, and these results were confirmed by consumer acceptance testing. These results confirm that most consumers are not willing to sacrifice flavor or texture for fat reduction in cheeses. Significant changes in flavor and texture are needed for a low-fat Cheddar cheese to have widespread consumer appeal.