Global Vegan Cheese & Processed Cheese Market (2023-2028) Competitive Analysis, Impact of Covid-19, Ansoff Analysis

Consumers are opting for vegan products owing to the rising awareness regarding animal cruelty

The Global Vegan Cheese & Processed Cheese Market is estimated to be USD 12.62 Bn in 2023 and is expected to reach USD 17.88 Bn by 2028 growing at a CAGR of 7.21%..

Vegan cheese is a non-dairy kind of cheese made from plants. The majority of its consumers are vegans, who abstain from using any sort of animal products. Sesame seeds, cashews, soybeans, sunflower seeds, rice, coconut oil, almonds, other nuts, and nutritional yeast can all be used to make this cheese. There is a noticeably larger concentration in the processed cheese industry. It is devoid of cholesterol and high in protein. Vegan cheese comes in a variety of forms and is sourced from various places. The most often used technique for making vegan cheese is fermentation, which involves soaking tree nuts in water for around 36 hours. For those who consume a vegan diet or have lactose intolerance, it is a well-liked substitute. Conversely, processed cheese is a kind of cheese that has undergone modifications from its original state to increase its texture and shelf life. To create processed cheese, natural cheese is often combined with emulsifiers, stabilizers, and additional ingredients like salt and milk solids. Because of its smooth texture and simplicity in melting, processed cheese is well-liked for usage in burgers, sandwiches, and other dishes. Vegan cheese can be processed and is manufactured from plant-based materials.

The market is driven by increasing concerns about health problems about the consumption of dairy products. As people all across the world have developed a never-before-seen enthusiasm for cooking at home, the COVID-19 epidemic has provided some relief to the market. As a result, the demand for vegan food items has dramatically expanded during the past few years. The demand for vegan cheese is being driven by changing consumer dietary tastes and developing trends in the food and beverage industry. Consumer food preferences have altered recently because of the increase in occurrences of lactose intolerance and other food-related allergies among both children and adults. Over 70% of people worldwide were lactose intolerant in 2019, according to data given by the Food Intolerance Network. Growing worries about the health and well-being of animals as well as a shift towards plant-based diets among people with dairy allergies. Customers are choosing plant-based diets that are high in fiber, water, vitamins, and minerals that improve the operation of the digestive system. Compared to products derived from animals, vegan products are simpler to stomach. Since studies have revealed that consuming substantial amounts of meat products daily may have negative health implications, people are changing their lifestyles by becoming vegans.

However, the market is restrained by the high costs associated with the consumption of vegan products as a result of the strain on raw material providers like cashew, coconut, soy, and almond, it becomes more challenging for raw material producers. It can cost more than cheese made from dairy because the ingredients are frequently more expensive. The cost of producing plant-based milk like almond or cashew milk is higher than that of cow's milk. Also, the labor-intensive nature of the vegan cheese-making process can raise the price. It needs to be created by further processing. Emulsifiers and other additives can be expensive to blend with natural cheese, and this cost is sometimes passed on to customers.

However, the market has an opportunity in increasing the online availability of products as it offers the same vitamins, proteins, and carbs that dairy cheese does. Moreover, vegan cheese contains a lot less fat than dairy cheese. Eating vegan food benefits people's health. To appease a substantial segment of the population, fast food businesses, resorts and motels, cafes, and restaurants began serving vegan cheese as an appetizer. In addition, the millennial age is coming up with creative ways to make vegan cheese. Spending on aggressive marketing techniques like influencer marketing on social media platforms and television has increased among manufacturers (TV). Also, the product's simple accessibility through both offline and online distribution channels is promoting the market growth. The hospitality and food service sector is helping the vegan cheese industry expand by offering vegan options on its menus.

• However, the market is challenged by limited use in cooking due to their limited melting capabilities. It can be trickier to utilize in some recipes because it has a different texture and melting point than cheese made from dairy. However, not all vegan cheeses are created equally, and some might not melt or blend properly in specific meals. Processed cheese can be used in some recipes, especially those that call for a more natural or delicate cheese flavor, however, its high sodium and additive levels can restrict this use. Furthermore, some recipes might not even call for cheese, and there are plenty of delectable plant-based and non-dairy substitutes that can flavor and texture foods without using cheese. Yet, the market may face difficulties because most consumers are unaware of the negative impacts of meat products.

Market Segmentations

• The Global Vegan Cheese & Processed Cheese Market is segmented based on Product, Flavor, Source, Sales Channel, End-User, and Geography.
• By Product, the market is classified into Mozzarella, Cheddar, Parmesan, Ricotta, Cream, and Others.
• The mozzarella segment held the largest revenue share and is expected to maintain its lead over the forecast period. Vegan mozzarella cheese is often created using plant-based milk like soy or almond and may also contain extra ingredients like tapioca starch or coconut oil to help it melt and stretch like regular mozzarella. For those who are vegan or lactose intolerant, it may be a good substitute. In the shape of slices, cubes, shredded cheese, and spreads, mozzarella is frequently used in Italian recipes like spaghetti, pizza, croquettes, and Caprese salad. In nations where Italian cuisine is well-liked, there is a notably high demand for mozzarella. Because of its widespread usage in burgers, pizzas, and other foods, it is anticipated to exhibit the highest market growth.
• By Flavor, the market is classified into Regular and Flavored.
• The flavored segment holds the largest revenue share as it can add a unique and bold flavor to dishes. They can give dishes like quesadillas, grilled cheese sandwiches, and macaroni and cheese a great kick and come in a range of tastes like jalapeno, garlic, and herb. Customers now can try new flavors thanks to the variety of vegan cheese flavors that are available, including caramel, blueberry, cranberry, and many others. Also, vegan cheese is a fantastic source of protein and is free of cholesterol, making it a healthy choice for people who are lactose intolerant and/or fat.
• By Source, the market is classified into Soy, Almond, Cashew, Coconut, and Others.
• The cashew segment held the largest revenue share. Vegan cheese made from cashews is low in fat and contains vitamins B2 and B12. This makes it popular with people that care about their health all over the world. Due to its health advantages, gluten-free and cholesterol-free cashew products are also becoming more popular. Products made from cashews that are cholesterol- and gluten-free are also gaining popularity as a result of their health benefits. It is a well-liked component of vegan cheese since it may be used to imitate the creamy consistency and mild flavor of cheese made from dairy. Vegan cheese products like mozzarella, cheddar, and cream cheese can be made from cashews by soaking them and blending them with water, nutritional yeast, and other ingredients. Cashews, like other nuts, can contain a lot of fat and calories, so it's vital to eat them in moderation as part of a healthy diet.
• By Sales Channel, the market is classified into B2C and B2B.
• The B2C segment held the largest revenue share. The demand for plant-based products in the B2C market has grown because of factors such as rising consumer disposable income levels and their desire to spend on high-end goods. The simple availability of products in supermarkets and convenience stores has also aided in this segment's expansion. Consumers can find it easily (B2C) in a range of products, including cheese blocks, pre-shredded packages, and sliced cheese. It can be found in natural food markets, health food stores, and increasingly in regular grocery stores. Direct-to-consumer brands and specialty merchants both offer it online. It is available in several shapes and flavors, such as cheddar, mozzarella, cream cheese, and others.
• By End-User, the market is classified into Food Industry, Foodservice/HoReCa, and Household.
• The Food Industry holds the largest revenue share. The food sector segment consists of dairy, ready-to-eat meals, sauces, baked products, dressings and dips, snacks, processed and packaged foods, and desserts. Because of the rising demand for plant-based alternatives to regular dairy cheese, it has been expanding quickly in recent years. To replicate the nutritional profile of dairy cheese, it is created from a range of components, including almonds, soy, and coconut. It is frequently fortified with vitamins and minerals. Nut-based cheese, soy-based cheese, coconut-based cheese, and vegetable-based cheese are a few common varieties of vegan cheese. As more significant food firms launch their lines of plant-based products, the demand for vegan cheese is anticipated to increase.
• By Geography, the market is classified into the Americas, Europe, Middle East & Africa, and Asia-Pacific.
• Europe accounted for the largest revenue share. Due to growing awareness of animal cruelty and the region's expanding carbon footprint brought on by the use of foods derived from animals, such as milk, honey, eggs, beef, pig, and seafood, consumers are increasingly choosing more environmentally friendly and vegan products. Another attractive location in the global vegan cheese market is Europe. The UK, Germany, and France are the three largest countries in this region. In the UK, health food stores and supermarkets have a wide variety of well-known vegan cheese products. Although producing cheese has a long history in many European nations, demand for vegan cheese is also fueled by customers who wish to continue eating cheese but ethically and ecologically. The demand for vegan cheese has increased, and some traditional cheesemakers in France, a country well known for its robust cheese culture, have even begun to develop plant-based substitutes. Many established dairy firms in Europe, including Arla, Bel Group, and Nestle, are launching plant-based cheese lines in addition to specialized vegan cheese brands.

Recent Development

• Kraft Heinz launched plant-based cheese slices which come in three flavors American, cheddar, and provolone. - November 2022
• New Culture launched its first product, dairy-identical vegan mozzarella. The business claims to be able to produce 'genuine cow cheese without the cow'by employing a precise fermentation method to produce casein, a protein found in cows' milk. - June 2021

Company Profiles

The report provides a detailed analysis of the competitors in the market. It covers the financial performance analysis for the publicly listed companies in the market. The report also offers detailed information on the companies' recent development and competitive scenario. Some of the companies covered in this report are Bute Island Foods, Daiya Foods, Dr-Cow Tree Nut Cheese, Field Roast Grain Meat, Follow Your Heart, etc.

Countries Studied

• America (Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States, Rest of Americas)
• Europe (Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxemburg, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom, Rest of Europe)
• Middle East and Africa (Egypt, Israel, Qatar, Nigeria, Saudi Arabia, South Africa, United Arab Emirates, Rest of MEA)
• Asia-Pacific (Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Taiwan, Rest of Asia-Pacific)
• The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Ansoff Analysis

• The report presents a detailed Ansoff matrix analysis for the Global Vegan Cheese & Processed Cheese Market. Ansoff Matrix, also known as Product/Market Expansion Grid, is a strategic tool used to design strategies for the growth of the company. The matrix can be used to evaluate approaches in four strategies viz. Market Development, Market Penetration, Product Development and Diversification. The matrix is also used for risk analysis to understand the risk involved with each approach.
• The publisher analyses the Global Vegan Cheese & Processed Cheese Market using the Ansoff Matrix to provide the best approaches a company can take to improve its market position.
• Based on the SWOT analysis conducted on the industry and industry players, the publisher has devised suitable strategies for market growth.

Why buy this report?

• The report offers a comprehensive evaluation of the Global Vegan Cheese & Processed Cheese Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
• The research report also provides a detailed market size analysis and projections in volume and value terms. The projections are calculated using verified research methodologies.
• Excel data sheet for the market size will also be provided with the report.
• The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
• The report includes an in-depth market analysis using Porter’s 5 forces model, PESTLE Analysis, and the Ansoff Matrix. In addition, the impact of COVID-19 on the market is also featured in the report.
• The report includes the regulatory scenario in the industry, which will help you make a well-informed decision. The report discusses major regulatory bodies and major rules and regulations imposed on this sector across various geographies.
• The report includes Self-Assessment Form, which helps customers evaluate their position in the market compared to their competitors.
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Report Highlights:

• A complete analysis of the market, including the parent industry
• Important market dynamics and trends
• Impact Analysis - a comprehensive assessment to confront risk and make strategic & operational decisions to counter the changes in the market environment.
• Market segmentation
• Competitive Analysis: Comparative analysis of competitor
• Historical, current, and projected size of the market based on value and volume
• Market size of the US states
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market