Plant-Based Cheese Market Size (2024 – 2030)

The Global Plant-Based Cheese Market was valued at USD 1.5 billion in 2023 and is projected to grow at a CAGR of 12.4% from 2024 to 2030. The market is expected to reach USD 3.4 billion by 2030.

Plant-based cheese is a dairy alternative made primarily from ingredients like soy, almond, cashew, and other plant-based proteins. This market is expanding rapidly due to the increasing adoption of veganism, growing health concerns regarding lactose intolerance, and the rising awareness of environmental sustainability. Consumers are also seeking out cleaner, plant-based labels as part of broader dietary shifts toward reducing the consumption of animal-derived products.

Key Market Insights:

• The vegan population worldwide has increased considerably, driving up the demand for plant-based cheese. In 2023, approximately 79 million people followed a vegan diet, and this trend is particularly prominent in North America and Europe.

• By 2023, the plant-based cheddar cheese segment dominated the market, holding over 35% of the total share. This is attributed to its wide application in various food products like pizzas, burgers, and sandwiches, which are increasingly being offered by fast-food chains and restaurants.

• Supermarkets and hypermarkets remain the largest distribution channels for plant-based cheese, accounting for over 40% of sales globally. However, online retail platforms are growing rapidly, especially in developed markets like North America and Europe, where e-commerce penetration is high.

Global Plant-Based Cheese Market Drivers:

Growing Consumer Preference for Vegan and Plant-Based Diets is driving market growth: One of the most significant drivers for the plant-based cheese market is the global shift towards vegan and plant-based diets. This change is driven by various factors such as environmental concerns, animal welfare, and growing awareness of health benefits. People are becoming increasingly aware of the impact of animal agriculture on climate change, deforestation, and resource depletion, prompting them to opt for plant-based alternatives. Additionally, dairy allergies and lactose intolerance, affecting nearly 68% of the global population, further push consumers toward plant-based cheese options. The availability of vegan-friendly options in mainstream supermarkets and restaurants has made plant-based cheese accessible to a broader audience, contributing to its growing demand.

Health Benefits and Clean Label Trends are driving market growth: Consumers today are more health-conscious than ever before, and the clean label trend has taken the food industry by storm. Plant-based cheese is perceived as a healthier alternative to traditional dairy products, with lower levels of saturated fat and cholesterol. Furthermore, the absence of artificial ingredients and preservatives in many plant-based cheese products aligns with the increasing demand for cleaner, more natural ingredients in food products. People are also shifting toward plant-based foods for their anti-inflammatory and cardiovascular health benefits, as plant proteins are generally considered better for long-term health compared to animal proteins. With an increasing number of people prioritizing health, plant-based cheese sales are expected to rise exponentially in the coming years.

Technological Advancements in Product Development are driving market growth: In the past, plant-based cheese has often been criticized for its lack of texture, flavor, and functionality compared to traditional dairy cheese. However, advancements in food technology are driving the market forward, allowing manufacturers to replicate the sensory and nutritional profiles of dairy cheese more effectively. Research and development efforts have led to improved formulations, making plant-based cheese products creamier, meltable, and more palatable. Ingredients like pea protein, coconut oil, and potato starch are being used creatively to enhance the taste and texture of plant-based cheese. This improvement in product quality is helping to broaden the market appeal, attracting not only vegans but also flexitarians and lactose-intolerant individuals.

Global Plant-Based Cheese Market Challenges and Restraints:

Taste and Texture Issues are restricting market growth: Despite technological advancements, achieving the perfect taste and texture in plant-based cheese remains a significant challenge for manufacturers. Consumers who are used to traditional dairy cheese often find plant-based alternatives lacking in flavor and mouthfeel. Some plant-based cheeses fail to melt properly or have a gritty or chalky texture, making them less appealing for use in popular dishes like pizza and macaroni and cheese. Additionally, there is a wide variety in the quality of plant-based cheese products available on the market, which can create consumer skepticism about switching to these alternatives. Manufacturers are continually working to improve these aspects, but this remains a key restraint to the mass adoption of plant-based cheese.

High Production Costs and Pricing are restricting market growth: The cost of producing plant-based cheese is another major barrier to market growth. Compared to traditional dairy cheese, plant-based alternatives often require more expensive raw materials, specialized processing techniques, and costly research and development investments. As a result, plant-based cheese is typically sold at a premium price, which can limit its accessibility to a wider consumer base. This price disparity is particularly evident in emerging markets where consumers may be more price-sensitive. Although the demand for plant-based cheese is rising, high prices remain a critical factor that could slow down its adoption, especially in developing economies where affordability is a key purchasing criterion.

Market Opportunities:

The plant-based cheese market offers several promising opportunities for growth, driven by changing consumer preferences, evolving regulatory frameworks, and a broader shift toward sustainable food production systems. With the increasing global trend of veganism and the rise in flexitarian diets, there is a significant opportunity to cater to a wide range of consumers looking to reduce their dairy consumption without sacrificing flavor or nutritional value. Furthermore, the growing concerns regarding the environmental footprint of traditional dairy farming are expected to bolster demand for plant-based alternatives. Dairy production contributes significantly to greenhouse gas emissions, water use, and deforestation, prompting many consumers to seek eco-friendly alternatives. This presents an opportunity for manufacturers to position plant-based cheese as a more sustainable and ethical choice, appealing to environmentally-conscious buyers. Additionally, innovation in ingredients and product formulations provides ample opportunities for product diversification. New technologies in plant-based food production are enabling companies to create cheese products that closely mimic the taste, texture, and melting properties of dairy cheese. The inclusion of plant-based proteins such as peas, almonds, and cashews in these products is giving manufacturers a broader range of options to experiment with, leading to the development of new and exciting flavors. Startups focusing on this space, coupled with established food companies expanding into the plant-based sector, are expected to intensify competition, further driving innovation.

PLANT-BASED CHEESE MARKET REPORT COVERAGE:

Plant-Based Cheese Market Segmentation: By Product

• Soy-based Cheese

• Almond-based Cheese

• Cashew-based Cheese

• Coconut-based Cheese

• Others (Pea Protein, Potato Starch)

The almond-based cheese segment is the most dominant in terms of market share, owing to its rich, creamy texture and wide usage in food service applications such as pizzas and pasta. Almond-based cheese is highly favored for its nutrient content, including healthy fats and protein, making it a popular choice among health-conscious consumers.

Plant-Based Cheese Market Segmentation: By Application

• Household

• Foodservice

• Bakery and Confectionery

• Snacks and Convenience Foods

• Ready-to-Eat Meals

• Others

The food service segment leads the market due to the increasing number of restaurants and fast-food chains offering vegan and dairy-free alternatives on their menus. The use of plant-based cheese in pizzas, burgers, and snacks has become particularly widespread, driving its demand in this sector.

Plant-Based Cheese Market Segmentation: By Region

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

North America holds the largest market share in the global plant-based cheese market, driven by a high concentration of vegan and health-conscious consumers, as well as strong retail and food service penetration of plant-based products. The U.S. is at the forefront, with major cities witnessing a surge in plant-based product offerings and an increasing number of startups focused on this niche.

COVID-19 Impact Analysis on the Plant-Based Cheese Market:

The COVID-19 pandemic has had a notable impact on the plant-based cheese market. The global health crisis shifted consumer priorities, with people becoming more health-conscious and seeking immune-boosting and nutritious food options. As plant-based products are perceived as healthier alternatives to traditional dairy products, demand for plant-based cheese saw a surge during the pandemic. Consumers were also more inclined to purchase sustainable and ethical food products, as the pandemic highlighted vulnerabilities in global food supply chains, particularly those reliant on animal agriculture. Moreover, the rise in e-commerce and online grocery shopping during the pandemic helped boost sales of plant-based cheese, especially in North America and Europe. With many brick-and-mortar stores closed or operating at limited capacity, consumers increasingly turned to online platforms to purchase groceries, including plant-based products. This shift is expected to continue post-pandemic, with online channels becoming a permanent fixture in the retail landscape.

Latest Trends/Developments:

The plant-based cheese market has seen several recent developments, including product innovations and strategic partnerships. Major food companies and startups are focusing on improving the texture, flavor, and nutritional profile of plant-based cheese. Innovations in fermentation technology and the use of novel ingredients like chickpea protein and hemp are expanding the possibilities for plant-based cheese formulations. Additionally, companies are investing in developing plant-based cheese that melts and stretches like traditional dairy cheese, a crucial factor for consumer satisfaction. In terms of market trends, there has been a noticeable increase in plant-based cheese options in food service outlets, from fast-food chains to fine-dining restaurants. Major brands like Domino’s and Pizza Hut are experimenting with vegan cheese options, while supermarket chains are expanding their plant-based product lines to include a broader range of cheese substitutes. This growing demand for plant-based cheese in both retail and food service is expected to drive further growth in the market.

Key Players:

1. Daiya Foods Inc.

2. Miyoko's Creamery

3. Violife

4. Kite Hill

5. Treeline Cheese

6. Follow Your Heart

7. Tofutti Brands, Inc.

8. Vevan Foods

9. Parmela Creamery

10. Good Planet Foods