Processed Cheese Market Outlook
Processed Cheese Market Analysis, 2021-
The global processed cheese market is expected to show moderate to high growth over the forecast period. Over the long term, strong demand from restaurants, hotels, outlets, and household segments, strong increase in fast food services worldwide will support the market growth.
Strong demand for convenience food products, such as burgers, pizzas, pasta, sandwiches in North America, Europe and other countries results in robust demand for processed cheese products to increase food flavours. As Aromatic and delicious cheese is an important ingredient in manufacture of western foods, the market is driven by strong market for the cheese. Vendors are eliminating artificial preservatives from the end products and launching products with wide range of flavours and textures.
The increase in diverse eating habits across the Asia Pacific region has led to a rise in the consumption of various bakery and confectionery products, leading to a rise in demand for protein rich products. Manufacturing companies in the country are increasingly targeting affluent customers, children, teenagers, and mainstream households.
The increase in focus on health requirements and high demand for transparency are the key factors shaping the consumption of clean label product, which is produced without using any chemical additives. Further, regulatory agencies such as United States Department of Agriculture (USDA) and European Economic Community Council exert stringent guidelines for the manufacturing process.
Shift in consumer demand patterns to grab-and-go foods, frequent snacking habits and home based cooking are supporting the market demand. On the other hand, preference for natural cheese due to the rising health awareness, the demand for processed cheese is fluctuating in developed markets. Accordingly, companies are launching low-fat, low-salt, and low-lactose varieties are increasingly being marketed by manufacturers. In particular, Cheddar and mozzarella are increasingly being focused in low fat segment.
The report analyses the processed cheese across different types including processed cheese slices, processed cheese blocks, processed cheese spreads (tubs and jars), canned processed cheese, and others. Of these, processed cheese slices remain the dominant type consumed worldwide with 34.7% market share. Further, over the forecast period, the segment continues to be the dominant type through the forecast period.
The dominant distribution channels for dairy products vary dramatically from country to country. Supermarket-type retailers dominate in the Western Europe and the US markets while smaller channels are the main distribution channels in emerging countries. Hypermarkets and supermarkets, Convenience stores, Specialty retailers, and others are the main distribution channels marketing the processed cheese worldwide. Of these, hypermarkets and supermarkets dominate the global sales with 64.1% market share in value terms.
Among regions, Asia Pacific is the fastest growing market driven by countries like China, India, South East Asia and other countries due to the changing lifestyles, urbanization trends, increase in spending power of families, and growing middle-class population and preference for western foods. The region is poised to register 5.1% CAGR over the forecast period. On the other hand, leading countries in Western Europe and North America are more inclined to natural cheese amid increasing health awareness.
Overall, the market size of processed cheese market stood at $25.6 Billion during 2020, representing an increase of 5.8% from 2019 due to the positive impact of COVID-19. The demand growth is likely to moderate in 2021 and will witness steady growth over the forecast period. From $25.6 Billion in 2020, we expect the demand to increase to $36.2 Billion in 2026.
Demand from growing middle class population, consumer preference for quick meals solutions, clean labelling foods, and e-commerce growth will support the market growth. However, challenges such as drive towards healthy and fresh foods, product recalls, intense competition and threat from low quality substitutes continue to challenge market growth. Further, threat of substitutes is high in the industry as butter, vegetable spreads, jams, mayonnaise and other products often penetrate into the processed cheese market.
Processed Cheese Companies Profiled in the Report
Groupe Lactalis SA
Le Group Bel
Processed Cheese Market Trends- Increase in demand for low-sodium processed cheese
Salt is an essential ingredient for cheese production for enhancing shelf life, enzyme activity, flavour, casein hydration, and microbial proliferation during ripening. However, the health-conscious consumers in developed markets focus on reducing their overall sodium intake, mainly due to health problems such as hypertension, cardiovascular disease (CVD), stroke, and heart attacks. Accordingly, companies are focusing on R&D to reduce sodium content through limit the amount of salt used in cheese making, and to replace NaCl with potassium chloride (KCl) (with ability to lower blood pressure and reduces CVDs). Monterey Jack, Ricotta, Parmesan, Ficek. Wensleydale, Emmental, Mozzarella, Cream cheese and Cottage cheese are different low sodium cheese types.
Processed Cheese Market Drivers-Private labels play a vital role in processed cheese sales
Private-brand cheese growth bolsters total cheese growth. Private Labelling is significantly increasing in the industry as the segment offers distribution channels a significant opportunity to attract customers into their stores. In segments including chunks and shredded, processed slices, cream cheese and grated cheese the private labels offer significant competition to national players. They sell variety of processed cheeses in different forms. These private labels provide key advantages such as flavour profiles, product quality, and packaging innovation in affordable and ready-to-cook segments. On the other hand, safety concerns of private labels and low brand awareness challenges pose significant risks to further expansion of the private labels.
Processed Cheese Market Challenges- Stringent regulations and Raw material costs challenges growth
Processed cheese suppliers should adhere to strict guidelines in terms of ingredients and manufacturing processes so as to promote their corresponding benefits. Amidst intense competition, companies are rushing to promote high nutritional values and low health issue related, which requires a high cost of raw materials and manufacturing process. Further, strong investments in R&D are required as product differentiation holds the key to success in the industry.
Processed cheese comprises of sodium citrate, calcium phosphate, enzymes, cheese culture, vitamin D3, milk fat, whey, sorbic acid and artificial food colourings. It can cause health related challenges if consumed in large volumes. This is posing significant challenges for market expansion, predominantly in developed countries in the US and Western Europe.
US Processed Cheese Market Outlook
The US accounted for the largest share in the North America processed cheese market, in 2020, with a value of US$5.7 billion. Busy lifestyles, large volume of working women, preference for convenience foods, which require least efforts during cooking encourage the market for processed cheese.
Strong demand for RTE foods, easy to prepare foods, bread eating culture, large consumption expenditure and vast population base support the market in the country. Further, presence of well-established organized retail outlets including convenience stores, grocery chains and specialty stores, which display different types of processed cheese varieties support customer purchase behaviour.
Growing awareness toward health benefits is encouraging manufacturers to develop low sodium products, which offers profitable opportunities for manufacturers as consumers widely accept these products.
However, changing dietary patterns along with lack of physical activities has resulted in huge obesity problems. The obesity prevalence in United States touched more than 93 million of population with 35% shown in young adults and 42% among middle age adults and 41% among older adults. This can pose challenges to overall market growth. Processed cheese products such as Kraft Singles continue to witness lower sales and companies are emphasizing on discounts to attract customers.
The US is a net exporter of processed cheese with 27 thousand tons of exports and 6.6 thousand tons of imports. Primary importers of the US processed cheese include South Korea, Mexico, Taiwan, Saudi Arabia and Australia while key suppliers to the US include the Netherlands, France, Jamaica, Nicaragua and others.
1. TABLE OF CONTENTS 2
1.1 List of Tables 6
1.2 List of Figures 8
2. EXECUTIVE SUMMARY 10
2.1 Summary 10
2.2 The global food and beverage industry in 2021 11
2.3 Processed Cheese Industry Outlook, 2020 – 2028 12
2.4 Abbreviations 13
3. INTRODUCTION TO PROCESSED CHEESE MARKET 14
3.1 Market Segments - Types, Applications, and Countries 14
3.2 Research Methodology 15
4. MACROECONOMIC & DEMOGRAPHIC OUTLOOK 16
4.1 GDP Outlook, 2010 – 2030 16
4.2 Population Outlook of Select Countries, 2010 – 2030 17
5. OVERVIEW OF THE PROCESSED CHEESE MARKET 18
5.1 Industry Panorama 18
5.2 Companies Profiles in the Report 20
5.3 Market Trends 20
5.3.1 Strong growth in online sales supports market growth 20
5.3.2 Increase in demand for low-sodium processed cheese 20
5.3.3 Increase in marketing initiatives 22
5.3.4 Emphasis on operational efficiency among the key strategies 22
5.3.5 Companies focus on innovative packaging and new flavours to attract customers 23
5.4 Market Drivers 24
5.4.1 Long shelf life of processed cheese supports producers and customers 24
5.4.2 Cost advantages over natural cheese 24
5.4.3 Private labels play a vital role in processed cheese sales 24
5.4.4 Demand from developing countries 25
5.5 Market Challenges 25
5.5.1 Intense competition among vendors restricts margins 25
5.5.2 Stringent regulations and Raw material costs challenges growth 25
5.6 Regional Analysis 26
6. TRENDS IN PROCESSED CHEESE MARKET TYPES 27
6.1 Largest Types 27
6.1.1 Processed cheese slices 28
6.1.2 Processed Cheese Blocks 29
6.1.3 Processed Cheese Spreads 30
6.1.4 Canned Processed Cheese 31
6.1.5 Others 32
7. GLOBAL OUTLOOK ACROSS COVID-19 SCENARIOS 33
7.1 Post COVID Scenario 34
7.2 Pre COVID Scenario 34
8. TRENDS IN DISTRIBUTION CHANNELS 35
8.1 Supermarkets and Hypermarkets 36
8.2 Convenience Stores 37
8.3 Online 38
8.4 Specialty Stores and Others 39
9. NORTH AMERICA PROCESSED CHEESE MARKET 40
9.1 Outlook 40
9.2 Trends and Opportunities 41
9.2.1 Processed cheese slices dominates the North American Processed cheese slices Market 41
9.2.2 Supermarkets and Hypermarkets dominate the North American Processed cheese slices Market 42
9.2.3 The US dominates the North American Processed cheese slices Market 43
9.3 Market Outlook by Country 44
9.3.1 United States 44
9.3.2 Canada 46
9.3.3 Mexico 47
10. EUROPE PROCESSED CHEESE MARKET ANALYSIS 48
10.1 Outlook 48
10.2 Trends and Opportunities 49
10.2.1 Processed cheese slices dominate the European Processed cheese slices Market 49
10.2.2 Supermarkets and Hypermarkets dominate the European Processed cheese slices Market 50
10.2.3 Germany dominates the European Processed cheese slices Market 51
10.3 Market Outlook by Country 52
10.3.1 Germany 52
10.3.2 United Kingdom 54
10.3.3 France 55
10.3.4 Spain 56
10.3.5 Rest of Europe 57
11. ASIA PACIFIC PROCESSED CHEESE MARKET 58
11.1 Outlook 58
11.2 Trends and Opportunities 59
11.2.1 Processed Cheese Slices dominate the Asia Pacific Processed cheese slices Market 59
11.2.2 Supermarkets and Hypermarkets dominate the Asia Pacific Processed cheese slices Market 60
11.2.3 China dominates the Asia Pacific Processed cheese slices Market 61
11.3 Market Outlook by Country 62
11.3.1 China 62
11.3.2 India 64
11.3.3 Japan 66
11.3.4 Rest of Asia Pacific 67
12. LATIN AMERICA PROCESSED CHEESE MARKET 69
12.1 Outlook 69
12.2 Trends and Opportunities 70
12.2.1 Processed Cheese Slices dominate the Latin American Processed cheese slices Market 70
12.2.2 Supermarkets and Hypermarkets dominate the Latin American Processed cheese slices Market 71
12.2.3 Brazil dominates the Latin America Processed cheese slices Market 72
12.3 Market Outlook by Country 73
12.3.1 Brazil 73
12.3.2 Argentina 74
12.3.3 Rest of Latin America 75
13. MIDDLE EAST AND AFRICA PROCESSED CHEESE MARKET 76
13.1 Outlook 76
13.2 Trends and Opportunities 77
13.2.1 Processed cheese slices dominate the Middle East and Africa Processed cheese slices Market 77
13.2.2 Supermarkets and Hypermarkets dominate the Middle East and Africa Processed cheese slices Market 78
13.2.3 Africa dominates the MEA Processed cheese slices Market 79
13.3 Market Outlook by Country 80
13.3.1 Middle East 80
13.3.2 Africa 81
14. COMPETITIVE LANDSCAPE 82
14.1 Mondelez International 82
14.2 Arla Foods 89
14.3 Groupe Lactalis S.A 94
14.4 Koninklijke DSM N.V. 101
14.5 Savencia 108
14.6 Le Group Bel 117
15. APPENDIX 121
15.1 About USD Analytics 121
15.2 Sources and Research Methodology 121
15.3 Copyright and Disclaimer 122