Non-Dairy Cheese Market - Growth, Trends, and Forecasts (2023-2028)

The non-dairy cheese market is projected to register a CAGR of 8.1% during the forecast period.

The growing awareness regarding animal cruelty and the negative impacts on the environment caused by the dairy industry has encouraged consumers to opt for plant-based cheese products. The gaining popularity of the vegan diet and increasing incidences of lactose intolerance have driven the market and will continue to do so in the near future. Increased health consciousness among consumers, dietary restrictions, and the popularity of veganism have led to a global demand for non-dairy cheese products.

The growing prevalence of milk allergies and lactose intolerance in children and the middle-aged has increased demand for alternative dairy cheese products.As per the data from the Cleveland Clinic, in the United States, more than 30 million people are lactose intolerant, which shows that Americans prefer to consume plant-based vegan cheese products, thus accelerating the growth of the non-dairy cheese market.

The food service industry has been significantly contributing to the growth of the vegan cheese market as hotels, restaurants, and fast food outlets are labeling their products with vegan cheese and also serving food with vegan cheese appetizers. Furthermore, growth in urbanized and millennial populations, which are potential and targeted consumer groups, is one of the major influencing factors for product growth.

Non-Dairy Cheese Market Trends

Growing Demand for Plant-Based Cheese Owing to Increased Lactose Intolerance

Congenital lactase deficiency or lactose intolerance is a condition wherein the small intestine becomes ineffective in terms of making the enzyme lactase digest or metabolize lactose. Transferring undigested lactose to the large intestine can result in severe health issues whose initial symptoms are gastric problems, diarrhea, and bloating. According to the World Population Review in 2023, about 65% of the adult human population has this type of lactose intolerance. In recent years, the demand for non-dairy cheese and other lactose-free products has gone up a lot. This is because lactose intolerance is becoming more common in many parts of the world.

Consumers are considering a vegan diet as a sustainable and healthy choice. Thus, it has gained popularity in recent years. The rising concerns of consumers toward animal products due to ethical reasons are leading to the consumption of healthier and cleaner products, which will boost the non-dairy cheese market. The key players in the market are investing a huge amount in research and development and focusing on product innovations and product launches as per the trending preferences of customers. For instance, in July 2021, Upfield launched the vegan cheese brand Violife in the Middle East. The brand is a lactose- and allergen-free dairy substitute that would be available in slices, boxes, and grated form in two flavors: cheddar and mozzarella.

North America Dominates the Market

North America dominates the non-dairy cheese market as a high percentage of the lactose-intolerant population is present, with an emerging trend for vegan food preferences. North America is an attractive market as a shift in consumer preference has been observed in the last few years owing to the growing veganism trend in the region. As veganism is gaining popularity in the North American region, various giant food manufacturers have started incorporating dairy substitutes into their cheese product lines. According to Plant Proteins.Co., by 2022, approximately 6% of US consumers will be vegan, a 6x (500%) increase from just 1% in 2014.

North Americans are highly conscious of their health and wellness. Thus, plant-based cheese is also served in bakeries, fast-food cafes, and restaurants. Moreover, North America is anticipated to grow significantly during the forecast period due to the popularity of plant-based cheese and the growing awareness among consumers concerning the unmatched benefits offered by plant-based dairy products, thus driving the growth of the non-dairy cheese market in the region.

Non-Dairy Cheese Competitors Analysis

Some major key players in the non-dairy cheese market include Otsuka Holdings Co., Ltd. (Daiya Foods Inc.), GreenVie Foods, Saputo Inc., Upfield Holdings B.V., and Unibel SA. The key brands in the non-dairy cheese market are highly competitive. Several small- and large-scale manufacturers are embarking on mergers and acquisitions and new product innovations to consolidate and optimize their offerings. For instance, in April 2021, Unibel Group launched Nurishh, its first 100% plant-based brand. With this expansion, the company hopes to gain as much market share as possible in the plant-based dairy alternatives market. The online retailing platform also plays a significant role in accelerating the growth of the non-dairy cheese market. Furthermore, advanced manufacturing expertise and distribution networks give manufacturers an advantage in expanding their product range globally.

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