Processed Cheese Market

Processed Cheese Market Overview

Global Processed Cheese Market size was valued at USD 20 Billion in 2023 and is projected to reach USD 27.9 Billion by 2032, growing at a CAGR of 4% from 2023 to 2032.

Processed Cheese Market Trends

Growth in sales of packaged food

Packaged food sales are on the rise due to the expansion of modern retail, which is being supported by the development of cold chain infrastructure for fresh, chilled, and processed foods. The global market for chilled processed beef products is experiencing a direct boost from increased consumer demand for healthier diets and the enhancement of cold-chain systems. In the Asia Pacific region, chilled processed beef products, mostly Western-style, are typically positioned as premium items with higher prices per unit. E-commerce is gaining popularity worldwide, with more consumers opting to purchase groceries and other food items through smartphone applications. Various e-commerce platforms are vying to increase their market presence by introducing their own food brands. In light of this trend, the sales of processed beef products through e-commerce channels are expected to gain significant momentum in the near future.

Surge in consumption of Frozen Foods

The global demand for frozen processed beef is experiencing a rapid surge. Consumers worldwide are increasingly interested in purchasing frozen food products due to the convenience they offer. Beef manufacturers are adopting freezing techniques not only to extend the shelf life of their products but also to enhance the overall quality. Consumers are becoming more mindful of the standards, sustainability, and ingredients used in the production process. As a result of its sustainable practices and superior quality, the demand for frozen processed beef is skyrocketing. One of the key drivers behind the increasing demand for processed beef is its associated health benefits. Processed beef aids in reducing the risk of chronic diseases and strengthens the immune system. It also helps combat iron deficiency. Health-conscious consumers opt for processed beef in their daily diets as it is a rich source of proteins, vitamins, and minerals. Additionally, it aids in muscle mass development and weight management.

Processed Cheese Market

Size, by Product, - (USD Billion)

Processed Cheese

Analog Cheese

Other Products

The Market will Grow

At the CAGR of:

4%

The Forecast Market

Size for in USD:

$27.9 Billion

Processed Cheese Market Dynamics

Drivers

Cheese is widely acknowledged as a nutritious dairy product that contains essential nutrients, protein, and calcium. However, its taste and ability to enhance the flavor of various dishes surpass its nutritional advantages. With the increasing emphasis on natural and healthy ingredients in the food and beverage industry, the inclusion of cheese in packaged foods and ready-to-eat meals is predicted to gain popularity. Moreover, the rising demand for high-quality cheese in countries like the United States, France, China, and the United Kingdom is compelling manufacturers to introduce organic and premium cheese with product certifications. This trend is expected to drive sales in the market in the foreseeable future. Additionally, the growing interest in international cuisine and authentic flavor profiles in food ingredients is projected to continue fueling the demand for genuine cheese and cheese-based products in the coming years.

Restraints

The processed cheese market may face obstacles due to health concerns related to its high sodium and preservative content. As consumers become more conscious of nutrition and health, they are increasingly aware of the potential negative effects of processed cheese. This has led to a rise in the demand for natural and organic cheese, which is perceived as a healthier alternative. Consequently, the processed cheese market is confronted with a significant challenge. Additionally, strict regulations governing food additives and labeling can complicate and increase the costs of production and marketing. Furthermore, the fluctuating prices of raw materials like milk and other dairy products can impact the overall profitability and cost of producing processed cheese.

Opportunities

Manufacturers have the chance to create and promote healthier processed cheese alternatives that have lower sodium content, natural ingredients, and additional nutrients, specifically targeting health-conscious individuals. By venturing into emerging markets where disposable incomes are increasing and dietary habits are changing, there is a significant potential for growth. The use of innovative packaging technology can improve the convenience, shelf life, and overall appeal of processed cheese products, thus attracting a larger consumer base. Additionally, the expansion of online retail channels provides an extra platform for processed cheese manufacturers to reach a broader audience and boost sales. Moreover, by offering customized and personalized cheese products that cater to specific consumer preferences and dietary requirements, new market niches can be created.

Challenges

Adverse Health Impact Due to Over Consumption of Processed Cheese to Impede the Market Prospects

Consuming processed and ultra-processed cheese products can have various negative effects on health. These products are high in salt and calories, which can contribute to atherosclerosis, increased cholesterol levels, and an increased risk of cardiovascular disease. As a result, individuals with chronic health conditions often choose to limit their consumption of cheese-based products as part of their diet. Additionally, the younger generation, who prioritize maintaining a healthy lifestyle, tend to prefer natural cheese products. This shift in consumer preferences has led to a decline in sales of processed cheese products. Moreover, the production cost of cheese products is notably high. Small-scale manufacturers face challenges in establishing a strong brand image compared to larger market players, resulting in lower profit margins. Additionally, the storage of cheese products is complex, and the use of expensive packaging materials further adds to the production cost. Consequently, a certain segment of consumers is hesitant to pay a premium price for these products, leading to reduced sales and limited market growth.

Rise in Awareness Regarding the Ill Health Effects of Cheese to Limit the Market Growth

The growth of the global cheese ingredients market is hindered by the consumption of cheese made from raw milk due to the presence of microbial contaminations that can lead to health issues. Health conditions such as obesity, high cholesterol levels, and heart diseases are commonly associated with the consumption of processed cheese. Furthermore, studies have indicated that consuming cheddar cheese may increase the risk of breast cancer by promoting the production of galactose from lactose. The ripening process of cheese involves the production of toxic alkaloids and amines that can affect the nervous system, resulting in symptoms like high blood pressure, headaches, palpitations, and migraines. The use of rennet, preservatives, emulsifiers, and other chemical agents in the production of cheese can also have harmful effects on the body. In the United States, certain types of cheese have been linked to outbreaks of food-borne gastroenteritis, food sensitivities, lactose intolerance, allergies, and high calorie content. Consumers are now more aware of the connection between these diseases and cheese consumption. This awareness poses a challenge for cheese and ingredient manufacturers as they strive to meet the demand for healthier food options.

Processed Cheese Market

Share, by end user, (USD Billion)

20 Billion%

Pasta & Noodles

Pizza

Soups

Sauces & Dressings

Other End-Users

27.9 Billion

Total Market Size

USD (Billion),

4%

CAGR

-

Processed Cheese Market Segments

• By Type

1. Processed Cheese
2. Analog Cheese

• By Application

1. Pasta & Noodles
2. Pizza
3. Soups
4. Sauces & Dressings
5. Ready-to-eat Food Products
6. Other Applications

• By Form

1. Cheese Blocks
2. Triangle
3. Rectangle
4. Circle
5. Square
6. Cheese Slice
7. Cheese Spread
8. Cheese Spray

• By End-Use

1. Retail / Household
2. HoReCa
3. F&B Processors
4. Snacks Manufacturers
5. Bakery and Confectionery Product Manufacturers
6. Sauces and Condiment Manufacturers
7. Ready Meal Manufacturers
8. Packaged Food Manufacturers
9. Other F&B Processors

• By Region

1. North America
2. Latin America
3. Europe
4. East Asia
5. South Asia
6. Oceania
7. Middle East Africa

Processed Cheese Market Key Players

• Kraft
• Savencia
• Bright Dairy & Food
• Fonterra Food
• Lactalis Group
• Bel Group
• Dairy Farmers of America
• Land O Lakes
• Crystal Farms
• Arla
• Koninklijke ERU
• Murray Goulburn Cooperative
• Amul
• Alba Cheese
• PT Diamond Cold Storage Indonesia
• Follow Your Heart
• Daiya
• Tofutti
• Heidi Ho
• Kite Hill
• Dr. Cow Tree Nut Cheese
• Uhrenholt A/S
• Bute Island Foods
• Vtopian Artisan Cheeses
• Punk Rawk Labs
• Violife
• Parmela Creamery
• Treeline Treenut Cheese

Processed Cheese Market Recent Development

March 2024: Kraft Heinz introduced a new line of natural and preservative-free processed cheese products, aiming to cater to the health-conscious consumer segment.

February 2024: Lactalis Group announced the acquisition of a prominent regional cheese manufacturer to expand its processed cheese portfolio and strengthen its market presence in North America.

January 2024: Bel Group launched a range of vegan processed cheese alternatives, leveraging the growing trend towards plant-based diets and catering to the vegan consumer base.

November 2023: Arla Foods invested in advanced cheese processing technology to enhance production efficiency and develop innovative cheese products with improved nutritional profiles.

October 2023: Fonterra Cooperative Group unveiled a new processed cheese brand targeting the premium segment, with unique flavors and artisanal qualities to differentiate from mass-market offerings.

Processed Cheese Market

Size, by Product, - (USD Billion)

The Market will Grow

At the CAGR of:

4%

The Forecast Market

Size for in USD:

$27.9 Billion

Conclusion

The global processed cheese market is projected to experience steady growth, driven by the rising popularity of convenient and long-lasting food products, increasing demand for high-quality cheese, and expanding online retail channels. However, challenges such as health concerns related to high sodium and preservatives, stringent regulations, and fluctuating raw material prices pose significant obstacles. Despite these challenges, there are ample opportunities for manufacturers to innovate with healthier alternatives, leverage emerging markets, and enhance packaging technologies to attract a broader consumer base. Recent developments highlight the market's dynamic nature, with key players investing in new product lines, acquiring regional manufacturers, and exploring vegan and premium cheese alternatives to meet evolving consumer preferences.

FAQs

What is the market size of Processed Cheese?

Ans: The global Processed Cheese market will reach a valuation of USD 20 Billion by the end of 2023.

By form, which segment is likely to experience the fastest growth rate?

Ans: Cheese Blocks Segment is expected to grow the fastest, at a CAGR of 4.1 %.

At what percentage will the industry expand during the 2023-2032 period of assessment?

Ans: From 2023 to 2032, the Processed Cheese industry is poised to flourish at a 4 % CAGR.

What are the top players operating in the Processed Cheese Market?

Ans: The major players in the market are Kraft, Savencia, Bright Dairy & Food, Fonterra Food, Lactalis Group, Bel Group, Dairy Farmers of America, Land O Lakes, Crystal Farms, Arla, Koninklijke ERU, Murray Goulburn Cooperative, Amul, Alba Cheese, PT Diamond Cold Storage Indonesia, Follow Your Heart, Daiya, Tofutti, Heidi Ho, Kite Hill, Dr. Cow Tree Nut Cheese, Uhrenholt A/S, Bute Island Foods, Vtopian Artisan Cheeses, Punk Rawk Labs, Violife, Parmela Creamery, Treeline Treenut Cheese

What segments are covered in the Processed Cheese Market report?

Ans: The Global Processed Cheese Market is Segmented on the basis of Type, Form, Application, End-use, Region.

Processed Cheese Market TO (USD BN)

CAGR OF

4%

Processed Cheese Market

27.9 Billion%