Processed Cheese Market Size (2023 - 2030)

Global Processed Cheese Market is estimated to be worth USD 18.47 Billion in 2022 and is projected to reach a value of USD 25.28 Billion by 2030, growing at a CAGR of 4.0% during the forecast period 2023-2030.

Processed cheese is a type of cheese which is made by blending natural cheese with additives like emulsifying salts, and whey proteins. It is also known as cheese food, cheese product or cheese spread and is widely used in many culinary applications. Processed cheese is appealing to a lot of consumers because of its convenience and versatility. It is well suited to many recipes and food products because it melts easily and uniformly. As compared to traditional natural cheese processed cheese has a longer shelf life. Many businesses in the food service industry like fast-food chains and packaged food manufacturers use processed cheese due to its consistent qualities. A wide range of flavours and varieties of processed cheese are available in the market like mozzarella, cheddar, swiss, etc. which attracts a large number of consumers. Processed cheese is largely used in snacks which cater to the demand for portable and convenient snack options. Some brands offer high-quality, premium and artisanal processed cheese as per consumer demand and preference. Processed cheese is consistently growing popular around the world as food preferences and culinary habits are spread globally.

Global Processed Cheese Market Drivers:

Growth in fast food, quick service restaurants and food industry demands drives the growth of the processed cheese market significantly

Consistent demand from the food industry is a major driver in the growth of processed cheese. This industry uses processed cheese as an essential ingredient in many ready-to-eat and packaged products. Fast-food chains and quick-service restaurants are expanding globally leading to increased demand for processed cheese. Snacks like hamburgers, sandwiches, cheeseburgers, pizzas, and cheese crackers which are very popular among consumers, have processed cheese as a key ingredient.

Longer shelf life and affordability continuously expand the processed cheese market

Processed cheese is generally more affordable compared to certain premium natural cheese, which makes it an accessible and affordable option for cost-conscious consumers. Also, processed cheese has longer shelf life making it a convenient option for individuals, especially in regions with limited access to fresh dairy products. These properties of processed cheese drive its demand in the food industry and among consumers as well.

Global Processed Cheese Market Challenges:

Health and Nutrition concerns among consumers could hinder the growth of the processed cheese market

Processed cheese generally contains many additives, stabilizers and emulsifiers which could raise health concerns among consumers. Individuals are preferring natural or minimally processed food items because of rising awareness about healthy eating habits. The more positive inclination toward organic, fresh and clean foods among consumers is seen as they are looking for alternatives with fewer additives and simple ingredients. This trend could adversely affect the demand for processed cheese.

Lactose intolerance and dietary restrictions could limit the market for processed cheese

Many individuals face lactose intolerance and dietary restrictions nowadays, which could limit the potential for growth in the processed cheese market. Many consumers opt for dairy-free or plant-based alternatives to prevent any health complications. People adhering to specific diets seek cheese alternatives which align with their eating habits. These factors could reduce the potential customer base for processed cheese products.

COVID-19 Impact on the Global Processed Cheese Market:

The COVID-19 pandemic had a notable impact on the food and beverage industry, including the processed cheese market as well. Lockdowns, travel restrictions and lack of labours disrupted the supply chain, which resulted in challenges with sourcing materials, processing and distribution. This led to supply shortages and price fluctuations in the market. Many fast-food outlets and restaurants were temporarily closed leading to decreased demand for processed cheese. Financial and economic restraints caused some consumers to prioritize essential spending. Export and international trade were also disturbed during the pandemic affecting the market of processed cheese. The pandemic caused changes in consumer behaviour and preferences, as people shifted towards shelf-stable food items and home cooking which might have led to a short-term surge in demand for processed cheeses. On the other hand, some consumers preferred healthy eating, because of rising health and wellness, which might have affected the need for processed cheese.

Global Processed Cheese Market Recent Developments:

• In August 2023, Philadelphia launched two new flavours of its vegan cream cheese, which was launched last year and gained widespread popularity. The expansion in its product portfolio is in response to growing consumer demands for vegan products.

• In November 2022, Britannia Industries, a packaged foods company, entered into a joint venture with Bel Group, a French cheese maker known for its brand, The Laughing Cow. This joint venture aims to manufacture, market and sell cheese products in India.

• In August 2022, Bel Group acquired a 70% stake in a Chinese cheese producer company, Shandong Junjun Cheese Co., to fulfil local conditions in China as Bel Group had no production facility in the country.

PROCESSED CHEESE MARKET REPORT COVERAGE:

Global Processed Cheese Market Segmentation: By Flavour

• Cheddar

• Mozzarella

• Swiss

• American

• Pepper Jack

• Others

Cheddar-flavoured cheese is a popular choice among consumers, as it offers a sharp and tangy taste. It is widely used in sandwiches, snacks and burgers. Mozzarella-flavoured cheese offers a mild and creamy taste, because of which it is commonly used in pizzas and pasta. It has good melting properties and appeals to consumers who seek a stretchy texture of cheese. Swiss-flavoured processed cheese has a slightly sweet and nutty taste. It is often used in deli sandwiches, and grilled cheese. American-flavoured cheese offers a mild and creamy taste commonly used in cheeseburgers, macaroni and grilled sandwiches. Pepper jack flavoured is a creamy cheese with spicy jalapeno peppers, which provides a unique taste. It is often used in dishes which require spice and a touch of heat. Other flavours of processed cheese could include cheese blended with herbs, vegetables and spices. Cheddar-flavoured cheese is the largest segment in the processed cheese market due to its wide appeal and common use in many dishes, making it a staple choice for consumers. Pepper Jack flavoured processed cheese is the fastest growing because of its flavour profile and growing popularity for spicy and bold flavours.

Global Processed Cheese Market Segmentation: By Product Type

• Pasteurized Processed Cheese

• Cold Pack Processed Cheese

• Cheese Spread

• Cheese Food

• Cheese Product

Pasteurized processed cheese is prepared by heating and blending natural cheese with additives like emulsifiers and stabilizers. It is often found in slices and blocks. Cold-pack processed cheese is also known as club cheese and is made without heat. It is normally served as spread or dip and has a different texture as compared to pasteurized cheese because it is prepared by blending cheese chunks, milk and emulsifiers. Cheese spread is a spreadable version of processed cheese which is generally smoother and is often used with snacks like bread and crackers. Cheese food is a type of processed cheese with a lower proportion of natural cheese in it. It has a higher moisture content and may contain additional dairy ingredients. Cheese product is another type of processed cheese which may contain varying percentage of natural cheese and other dairy ingredients.

Pasteurized processed cheese is the largest segment by product type in the processed cheese market. It is widely used by consumers because of its convenience and flexibility and could be commonly found in many dishes and packaged formats. The cheese spread segment is the fastest growing segment attributed to its creamy and spreadable feature making it suitable for various snacks.

Global Processed Cheese Market Segmentation: By Distribution Channel

• Supermarkets/Hypermarkets

• Convenience Stores

• Online Retail

• Others

Supermarkets and hypermarkets are large retail stores where consumers buy everyday items. Processed cheese is commonly found in such stores, within dairy sections or dedicated aisles, providing a convenient option to consumers. Convenience stores are small retail outlets which offer everyday items along with processed cheese products making them a popular choice as grab-and-go stores. Online retail stores and E-commerce platforms provide customers with a wide range of choices to choose from along with various perks like discounts, complimentary items, and doorstep delivery. Other distribution channels include speciality stores offering a curated selection of processed cheese, food service and wholesale suppliers.

Among these segments, Supermarkets/Hypermarkets comprise the largest segment because they offer a wide variety of products to consumers catering to all their needs. Supermarkets have large footfall and many product offerings. The fastest segment is Online retail attributed to factors like E-commerce expansion, convenience, wide selection and other benefits.

Global Processed Cheese Market Segmentation: By Region

• North America

• Europe

• Asia-Pacific

• South America

• Middle East & Africa

North America has a vast market of processed cheese as it is a staple food in this region, and is used in various dishes and culinary applications. Europe has a rich tradition of cheese consumption, mainly popular in countries like the UK, Italy, Germany and France and is widely used in both modern and traditional dishes. Asia-Pacific region sees growing consumption of processed cheese products as many countries like India, China, South Korea and China are incorporating processed cheese into their cuisines. Latin America uses processed cheese in a wide variety of dishes like empanadas, arepas and sandwiches, with countries like Mexico, Brazil and Argentina being the main consumers. In the Middle East and Africa, processed cheese is gaining popularity in fast food and convenience food segments.

North America is the largest contributor to the processed cheese market because this region has a well-established fast-food culture and processed cheese is a staple in many foods application. Asia-Pacific is the fastest-growing segment because of changing consumer preferences, western influence, culinary fusion and increasing disposable income.

Global Processed Cheese Market Key Players:

1. Kraft Heinz Company

2. Mondelēz International

3. Bel Group

4. Sargento Foods Inc.

5. Arla Foods

6. Fonterra Co-operative Group

7. Groupe Lactalis

8. Bongrain S.A. (Now known as Savencia Fromage & Dairy)

9. Grande Cheese Company

10. Land O'Lakes Inc.