Oct 11, 2018
Flavor Innovations Will Drive the US$ 38 Bn Global Cheddar Cheese Market Further, Predicts Fact.MR
by Team Fact.MR
Fact.MR’s recent market intelligence on the global cheddar cheese market offers incomparable insights transforming the global landscape. Throughout the assessment period of 2017-2022, global cheddar cheese market is projected to lie in the low growth-high value quadrant-with a sluggish growth through 2022 and valuation exceeding the US$ 38 Billion mark. Increasing demand for innovative and well-positioned premium products, will drive the global cheese market and present a plethora of opportunities to cheese manufacturers. Manufacturers expanding their product offerings in terms of flavors, will fuel the widespread consumption of cheddar cheese.
Cheddar cheese, regarded as the closest to natural cheese, in terms of processing, is a critical factor driving the product consumption. Moreover, increased westernization of food coupled with investments in the foodservice industry will translate into promising revenue growth for the global cheddar cheese market, throughout the forecast period. F&B processing and HoReCa sectors will record maximum adoption of cheddar cheese, in the coming years. However, plant-based products range with flavor notes similar to cheddar cheese are taking over the global market owing to the increasing proliferation of vegan and dairy-free lifestyles-a trend responsible for slow-moving growth of global cheddar cheese market.
The cheddar cheese market is relatively mature considering the presence of several private labels. This is projected to create pressure on cheese manufacturers to add value to their product offerings. Moreover, with increased penetration of alternatives in the form of non-dairy products catering to either the vegan or lactose-intolerant population-that small manufactures are already eyeing, Fact.MR recommends cheese makers jump on the health bandwagon with innovative products, soon.
Fact.MR also foresees the rise of private labels on supermarket shelf space as a major factor contributing to the price-competitive environment, posing a strong threat to artisanal and specialty brands. Presence of private labels in developed countries of North America and Europe, collectively account for nearly 50 percent, predicts Fact.MR. Moreover, manufactures targeting the ‘snacking movement’ will translate into more value addition, thereby pushing the cheddar cheese market upwards. Packaging, to enhance the functional role, is likely to fuel the market growth for cheddar cheese. Manufacturers exploring eco-friendly, single-layered, and low-weight packaging alternatives made of low-density poly ethylene for cheddar cheese, is anticipated to tempt the ‘environment-conscious’ consumer segment and increase sales.
European cheddar cheese market will retain its dominant position during the forecast period and account for high consumption and production of cheddar cheese, holding a 47 percent share in the global market. Factors such as high quality milk production coupled with traditional cheddaring techniques still prevalent in the region, will drive the cheddar cheese market in Europe and present an investment opportunity worth US$ 18 Billion through 2022. Cheddar cheese market in North America and APEJ would also gain traction during the assessment period.
Goat milk, compared to cattle or sheep milk will find widespread adoption in cheddar cheese manufacturing owing to lesser levels of sodium, lactose, saturated fats and cholesterol, and casein variants. A significant amount of cheddar cheese is currently sold through wholesales/distributor/direct channel. During the forecast period, wholesales/distributor/direct is expected to remain rewarding distribution channel for cheddar cheese, accounting for a sales worth US$ 13 Billion by the end of 2022. In terms of product form, blocks followed by cheese will gain maximum traction in the coming years considering the convenience feature and ease-of-transportation. As per Fact.MR’s assessment, the global consumption of cheddar cheese in block form is likely to stand at US$ 9.8 Billion, by the end of assessment timeline.
For a more comprehensive understanding of the competition in the global cheddar cheese landscape, Fact.MR’s report also provides a detailed analysis of the key companies operating in the cheddar cheese market, along with their key developments and financials. Key players such as Fonterra Co-operative Group Limited, Almarai - Joint Stock Company, Arla Foods amba, Savencia SA, Sargento Foods Inc., Associated Milk Producers, Inc., and Mondelez International, Inc. have been included in the scope of the report.