Cheese Alternatives Market Report

Consumer awareness towards health has increased the demand in the market for plant-based cheese alternatives. As growing health concerns about dairy products are diagnosed, such as allergies and high cholesterol levels, consumers seek healthier alternatives aligned with these goals. In addition, the concerns over nutritional profile including saturated fats and cholesterol associated with traditional cheese encourage many to look for healthier alternatives that are low in fat and animal-free. Thus, as per the data of the Food and Agriculture Organization (FAO), the retail sales of plant-based foods globally are projected to reach US$ 162 billion by 2030 and amounted to US$ 31 billion in 2022.

Plant-based cheeses tend to favor better nutritional profiles since they are made from nuts, seeds, and soy, which are rich in beneficial fats, fiber, and vitamins. Increasing prevention health measures, coupled with the notion that a balanced diet is in itself a refreshing aspect of healthy eating habits, has validated how plant-based cheese alternatives remain an attractive option for modern nutrition.

The demand for cheese alternatives is increasing among Gen Z and Millennials, mainly driven by a combination of health consciousness, environmental concerns, and changing food preferences. Gen Z and Millennials are concerned about sustainability, ethical sourcing, and transparency in food production, thus compelling brands to innovate with plant-based cheeses, be it cashew, almond, or oat-based. This trend has a rich cultural background in developing a new movement, minimally impacting the planet through the reduction in animal agriculture is limited to food.

High-quality, dairy-free cheese alternatives and other diverse, plant-based options have rapidly spread across demographics leading the charge toward such alternatives for taste and conscience alike. As per the survey of The World Economic Forum, only 16 percent of baby boomers say they consume plant-based foods often or almost daily, compared with 27 percent of Generation Z and millennials. There's a more specific indicator of greater progress with Gen Z consumers reporting a 5 percentage-point increase in adopting a vegetarian or vegan diet since 2021.

Increased shelf life is one of the biggest challenges for plant-based cheese products. Keeping them fresh without preservatives is difficult. While natural fermentation does the trick and extends the shelf life of natural dairy cheeses, the plant-based type made from nuts, soy, coconut, etc., spoils sooner. Bacteria are more likely to thrive on plant-based cheese ingredients, which could affect flavor, texture, and safety. All of this makes it even more difficult to preserve plant-based cheese for the long term compared to dairy cheese. Solutions to this challenge are crucial for market development.

The nutritional aspect of plant-based cheeses increasingly becomes a crucial factor in influencing their acceptability among consumers, especially health-conscious individuals. Cheese from animal sources are appealing not only due to their taste and texture but also due to their rich nutrient profile involving high protein, calcium, and various essential vitamins. In contrast, products that resemble cheeses do not match these nutrients. This makes consumers skeptical about the health benefits of such products. Most of the plant-based cheeses are made up of nuts, soybeans, or starches, which means they do not have the same complete protein as dairy products. This factor generally tends to drive away those nutrition-savvy consumers, along with affecting the market.

New product launches are getting up the cheese alternative markets to offer more varieties and flavors so that people can opt for dairy-free alternatives. As the demand grows with consumers searching for more fruits and vegetable options as well as a healthier-provident life, now brands are bringing new, more exciting creations about cheese alternatives-new cheese dishes-from French cooking that will make cheese alternatives a hot offering.

In November 2024, The Laughing Cow, a Bel Brands USA company, launched its plant-based spreadable cheese product nationwide. The dairy-free offering was aimed at consumers seeking spreadable plant-based alternatives, using almond milk to create a creamy texture. The Laughing Cow’s vegan-certified, non-GMO product was initially available in a garlic and herb flavor, and the company planned to explore spicy additions for 2025. The Laughing Cow Plant-Based was sold exclusively at Whole Foods Market stores across the United States for $4.49 per 4.5-oz container. The company planned to roll out the garlic and herb and an Original variety in Kroger locations and other grocery retailers this spring.

In September 2024, UK cheese brand Cathedral City expanded its dairy-free range with the launch of a plant-based alternative to smokey cheddar. It is aimed to bring on-trend flavors to all consumers whether they consumed dairy or were dairy-free figures reportedly indicated that smokey was the leading flavor within the plant-based market. The company claimed that the product was the first smokey cheese alternative in the UK to be flavored with natural methods. The taste was created using water infused with natural woodchip smoke. This move not only broadens their market reach but also enhances brand loyalty by offering inclusive options.

To meet the rising demand for such alternatives among health-conscious people seeking new, sustainable food options, in August 2023, Agrocorp International launched HerbYvore Just Like Cheese-the nut cheese range that highlighted Singapore's first consumer-brand HerbYvore plant-based cheese portfolio. Local outfit Agrocorp started its operation by selling basic food items such as wheat, pulses, and rice to food manufacturers within the Asia-Pacific and the Middle East. The company further expanded by opening a plant protein extraction facility in Canada, developing R&D capabilities, and creating its plant-based food brand, HerbYvore.

North America can be considered a lucrative market due to the rising demand for cheese alternatives. The reason behind this growth is the popularity of cheese in fast food and convenience foods contributes to its high consumption rates also the combination of cultural preferences, and diverse culinary applications. The rising population shift towards vegan and plant-based products is expected to boost the demand for cheese alternatives. Furthermore, as per the data from the National Library of Medicine in 2019 the value of alternatives to cream cheese market was US$ 45 million which rose to US$ 129 million in 2022 and is forecasted to reach US$ 300 million by 2032 thus the rising demand for cheese and plant and vegan food is expected to drive the market for cheese alternative market.

Europe is becoming a significant marketplace for plant-based food as well as dairy products because more are opting for these. This uptrend in demand is primarily an outcome of increased awareness of health, and environmental concerns, as well as ethical issues faced by animals. Many look for plant-based products just because they believe that helps reduce carbon emissions and makes farming sustainable. In Germany, for instance, 30% of people claim themselves to be flexitarians and 10% as strictly following a plant-based diet.

Consequently, Germany is the country with the highest percentage of eating plants. Moreover, in Europe, data from the Good Food Institute Europe states that from 2020 to 2022, the sales of plant-based cheese rose by 62% whereas traditional cheese declined by 4%. This is due to an increasing interest in plant-based products, including cheese, and should, therefore support the market for cheese alternatives.