Natural Cheese Market

Natural Cheese Market Outlook (2023 to 2033)

Worldwide consumption of natural cheese is predicted to increase at a CAGR of 4.6% from 2023 to 2033. At present, the global natural cheese market stands at a valuation of US$ 14.2 billion and is estimated to reach US$ 21.3 billion by the end of 2033. Demand for natural cheese slices is predicted to rise the fastest over the coming years since they are widely used to make sandwiches and burgers in both, homes and restaurants.

Natural cheese is now a staple in fast food, including pizza and burgers, as well as in eateries along the highway. It is a significant component in many cuisines. Global demand for natural cheese has increased as a result of rising health consciousness. Natural ingredients and flavorings are used in the production of natural cheese. Different types of cheese are divided based on production methods and aging times.

The market is driven by the growing popularity of ready-to-eat foods. The use of natural cheese in prepared meals, convenience foods, and fast food is further boosting the demand for natural cheese. The consumption of natural cheese has increased in the global market due to a change in consumer eating preferences.

An increase in the number of in-store restaurants, take-out businesses, and pub restaurants is the result of changing economic standards and social customs, as well as the trend of fast-food consumption. The youth population's preference for natural cheese in their "on-the-go" food products has a significant impact on the sales of natural cheese. Sales of natural cheese are supported globally by several other variables, including socioeconomic factors, changing dietary patterns, and industrial players focused on youth marketing and taking young people's eating preferences into account.

The two main reasons promoting cheese market expansion are the rising demand for foods high in protein and the expanding knowledge of the advantages of dairy foods. Other significant elements that influence market expansion include changing lifestyles, westernization, rising demand for value-added goods, an increase in the number of quick service restaurants (QSRs) in developing countries, and an ever-increasing world population. Improved distribution channels, a greater emphasis on innovative packaging from manufacturers, an increase in the availability of foods that boost immune function, and shifting consumer tastes and preferences will all contribute to market value growth.

The popularity of emulsifiers and preservatives-free cheese is continually picking pace considering the increasing inclination towards healthy eating and moving away from cheese made using milk protein concentrates (MPCs). Consumers opting for traditional cheese, laden with grass-fed cows’ milk that is high in A2 beta-casein and considerably low on low in A1 beta-casein is projected to drive the natural cheese market, globally.

High sodium levels in cheese, being increasingly linked to rising incidences of hypertension, stroke, and kidney diseases have called for a ‘less sodium’ movement, globally. Moreover, since sodium is an essential ingredient used in the final steps of the cheese-making process, manufacturers have been increasingly producing natural cheese with less sodium and fat content, making products with high nutritional value available to consumers.

Report Attributes	Details
Market Size in 2023	US$ 14.2 Billion
Projected Market Value (2033)	US$ 21.3 Billion
Global Market Growth Rate (2023 to 2033)	4.6% CAGR
Market Share of Households	50%
Key Companies Profiled	Arla Foods; Groupe Lactalis S.A.; Savencia Fromage & Dairy; Sargento Foods Inc.; Borden Dairy; Almarai Co. Ltd.; Fonterra Co-operative Group Limited; Associated Milk Producers Inc.

Why is Demand for Natural Cheese Growing Steadily across Regions?

“Growing Popularity of Premium Dairy Product Variants”

Consumer preference for experimenting with new, exotic flavors and cuisines has significantly expanded in recent years. The use of diverse forms of cheese in these cuisines has accelerated due to the growing popularity of cheese flavor combinations in various cuisines, including Italian and Mexican.

Leading dairy product processors have been forced to manufacture novel goods such as powder and creamers, as a result of the food service industry's growth. One of the burgeoning areas is natural cheese, which satisfies the demand of the modern customer for novel flavors. With advancements and innovations introducing innovative products to the retail marketplace, the industry is thriving on a global scale.

Demand for natural cheese is favorably influenced by the increased popularity of healthy snacking, which can be linked to clean-label and all-natural components. The demand for products is also anticipated to be fueled by developments and innovations aimed at creating new flavors and tastes across several natural cheese variations. It is projected that throughout the forecast period, the rising popularity of premium product variants would accelerate market expansion.

Increasing demand for specialty and ready-to-eat products within the natural cheese market has pushed for new product development and packaging innovations. Manufacturers are increasingly focusing on meeting the nutritional and labeling guidelines to help consumers evaluate the nutritional content.

Moreover, growing penetration for convenient and portion-control foods has been a significant driver in novel packaging innovations and designs including press-to-close openings, sliders, and straight-tear scoring –to ensure easy access and long-lasting freshness.

How is Market Expansion Being Restrained to Some Extent?

“Availability of Substitutes and Stringent Regulations by Government Organizations”

Restricted availability of natural cheese especially in grocery stores would restrain the adoption to some extent. Strict laws by government organizations requiring some businesses to reduce the amount of sodium in their food products would be a significant obstacle to market expansion.

Increasing demand for plant-based cheese is anticipated to impact the sales of natural cheese over the coming years. Moreover, changing dietary patterns considering the growing number of lactose intolerance cases will further restrict the market, globally. Cheese Analogue, another cheese substitute made from vegetable proteins peanuts and soybean is also likely to impact the global consumption of natural cheese.

How Can Emerging Market Players Increase Their Revenue Share?

“Start-ups Investing Significantly in R&D to Offer High-protein Products”

New market entrants are making significant investments in R&D to offer new and high-protein products due to consumer awareness of their health benefits. New companies are trying to boost processing capacity to meet the growing product demand.

• The Kraft Foods Group offers cheddar cheese that has probiotics. The product was introduced to appeal to a market niche of buyers looking for solutions to problems with their immune systems and digestive systems. Offering a pleasant flavor in addition to health advantages has emerged as a successful tactic.

Start-ups should follow in the footsteps of such well-established companies to make a mark in this industry. They should also implement smart marketing strategies to acquire a competitive edge.

Why is North America Catching the Attention of Natural Cheese Vendors?

“Growing Popularity of Gourmet Food Franchises & Eateries in North America”

North America holds 50% market share of the global market due to rising consumer demand for convenience foods and the growing popularity of gourmet food franchises & eateries. Rising disposable income and higher product penetration are just a few of the factors boosting market expansion.

Additionally, it is anticipated that the market will be driven by the rising popularity of eating out and the growing customer preference for Italian cuisines.

Country-wise Insights

What is the Market Outlook for Natural Cheese in the U.S.?

“Rapid Expansion of HoReCa Industry in the Country”

A majority of the savory and dairy snacks consumed in the United States are made using natural cheese, making it the country with the highest production and consumption rates in the world. Manufacturers are being forced to engage in product quality enhancements and innovation due to the country's thriving HoReCa industry and huge inflow of foreign tourists.

Why is Germany Exhibiting High Demand for Natural Cheese?

“Increasing Adoption of Confectionary Products in Staple Diets”

The growth of the fast-food industry in Germany is anticipated to increase demand for natural cheese over the coming years. The main consumer demographics for cheese products in the country are the millennial generation and the expanding upper middle class.

Increasing adoption of confectionary products in staple diets, growing consumer preference for premium & high-quality dairy products, and rapid development of food service businesses are the elements supporting market expansion in Germany.

What is Boosting the Sales of Natural Cheese in Japan?

“Increase in Product Innovations in Terms of Flavors & Texture by Leading Producers”

The primary drivers of market growth in Japan include the surging adoption of e-Commerce channels, the rapid expansion of the dairy industry, the presence of top natural cheese suppliers, and the high usage of cheese in various processed meals. The market will rise as a result of increased product innovations in terms of flavors and textures by leading producers.

Category-wise Insights

Which Application Accounts for High Consumption of Natural Cheese?

“Consumption of Natural Cheese in Household Applications Growing Due to Easy Availability of Variety of Flavors & Shapes”

Based on application, the market is divided into HoReCa, household, food & beverage processing. Household applications account for 50% share of the global market. Home cooking is becoming more popular, with interest in quick and easy, healthy, and gourmet dishes growing. Natural cheese is a great fit for this trend because of its variety in terms of flavors and shapes.

Market expansion has been boosted by the rising demand for cheese in burgers, pizzas, and other common food items. The household culinary industry is now more likely to favor natural cheese due to its easy availability. Additionally, the extraordinary demand for cheese in various Italian and Turkish cuisines has fueled industry expansion.

Which Sales Channel Accounts for High Revenue Generation?

“Consumers Prefer Supermarkets/Hypermarkets Due to Easy Accessibility of Several Products with Quality Assurance”

The market is classified into supermarkets/hypermarkets, convenience stores, and online retail stores based on sales channel. Due to the industry's quick change, investors can take advantage of customers' comforts to offer pleasant purchasing experiences.

To avoid penalties from the Environmental Protection Agency (EPA), supermarkets concentrate on quality control, detecting refrigerant leaks, meeting new regulatory standards, and giving customers high-quality products. Supermarkets/hypermarkets are predicted to become the most popular places to buy natural cheese due to the massive product options and increasing accessibility of several products, as well as the commitment to quality assurance.

Competitive Landscape

Top natural cheese providers are developing unique products using natural components as a result of the continuous changes in eating habits. Leading companies are using marketing initiatives to boost sales of natural cheese and they are partnering with other businesses to increase their market share.

For instance,

• Sargento Foods announced the expansion of one of its facilities in Wisconsin to increase cheese production due to rising consumer demand.

Key Segments of Natural Cheese Industry Research

• By Product Form:

  • Blocks
  • Cubes
  • Slices
  • Spreads
  • Sprays

• By Source:

  • Cattle Milk
  • Goat Milk
  • Sheep Milk

• By Application:

  • Food & Beverage Processing
  • HoReCa (Hotel, Restaurants, and Cafes)
  • Household

• By Sales Channel:

  • Supermarkets/Hypermarkets
  • Convenience Stores
  • Online Retail Stores

• By Region:

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa