Global Processed Cheese Market Overview
Processed Cheese Market Size was valued at USD 16.9 Billion in 2023. The processed cheese industry is projected to grow from USD 17.6 Billion in 2024 to USD 25.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.50% during the forecast period (2024 - 2032). Growing consumer awareness of health and wellness leads to demand for low-fat or reduced-sodium variants of processed cheese, which are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Processed Cheese Market Trends
- Rise in the food and beverage industry is increasing the market growth
Market CAGR for the processed cheese marketplace is experiencing a big increase, fueled in element by means of the expansion of the meals and beverage enterprise. Driven by the increasing call for handy and affordable food products. This growth is especially obvious within the Asia-Pacific region, in which rapid urbanization and changing dietary behavior are contributing to the expansion of the food and beverage sector.
Additionally, convenience and affordability are key drivers shaping the processed cheese market. With consumers leading increasingly busy lifestyles, the call for handy meal solutions is on the upward push. Processed cheese gives a brief and clean option for including flavor and texture in a lot of dishes, from sandwiches to casseroles. Moreover, its affordability compared to natural cheese makes it an appealing choice for finance-conscious purchasers. Data from Nielsen shows that sales of processed cheese products have increased step by step in recent years, with customers looking for value-powerful alternatives without compromising on taste or comfort.
Furthermore, the versatility of processed cheese in diverse culinary packages further propels its popularity. Whether used as a range of crackers, melted in sandwiches, or integrated into sauces and dips, processed cheese gives quite a number of opportunities for creative cooking. This adaptability appeals to both home cooks and food service experts looking to innovate their menus. Euromonitor International reports a developing trend of incorporating processed cheese into gourmand dishes and fusion cuisines, reflecting its versatility and attraction throughout various customer segments. As the meals enterprise continues to evolve, processed cheese remains a staple ingredient valued for its convenience, affordability, and flexibility in an extensive range of culinary creations. Thus, driving the processed cheese market revenue.
Processed Cheese Market Segment Insights
-
Processed Cheese Cheese Type Insights
The Processed Cheese Market segmentation, based on Cheese Type, includes Blue Cheese, Brick Cheese, Camembert Cheese, Cheddar Cheese, Cottage Cheese, Cream Cheese, Mozarella Cheese, Romano Cheese, Swiss Cheese, and Others. In 2023, the Cheddar Cheese segment dominated the market. Cheddar cheese is one of the most popular and widely consumed cheeses globally. Its rich and savory flavor profile appeals to a broad range of consumers, making it a staple ingredient in many dishes.
-
Processed cheese Form Insights
The Processed Cheese Market segmentation, based on Form, includes Cheese Blocks, Triangle, Rectangle, Circle, Square, Cheese Slice, Cheese Spread, and Cheese Spray. In 2023, the Cheese Slices category generated the most income. Cheese slices offer uniformity in size and shape, ensuring consistent portioning and presentation in both commercial and home settings. This consistency enhances the overall dining experience for consumers.
-
Processed cheese Milk Source Insights
The Processed Cheese Market segmentation, based on Milk Source, includes Cattle Milk, Goat Milk, and Sheep Milk. In 2023, the Cattle Milk generated the most income. Cattle milk is the most widely available and commonly consumed milk source globally. The large-scale production and distribution of cattle milk make it easily accessible to consumers and manufacturers alike, contributing to its dominance in the processed cheese market.
Figure 1: Processed Cheese Market, by Milk Source, 2024 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Processed cheese End-Use Insights
The Processed Cheese Market segmentation, based on End-Use, includes Air Drying, Vacuum Drying, and Microwave Drying. In 2023, the air-drying category generated the most income. Air drying is a cost-effective end-use compared to other techniques such as vacuum drying and microwave drying. It requires minimal equipment and energy consumption, making it accessible to small-scale herb growers and processors. The simplicity of the air drying process reduces production costs, allowing manufacturers to offer processed cheese at competitive prices in the market.
Processed cheese Distribution Insights
The Processed Cheese Market segmentation, based on distribution, includes Direct Sales (B2B), Hypermarkets and Supermarkets, Club Stores, Discounters, Grocery Retailers, Convenience Stores, and Online Stores. In 2023, the Direct Sales (B2B) category generated the most income. Consumers are increasingly seeking convenient and accessible options for purchasing processed cheese to use in home cooking and culinary endeavors. The B2C segment caters directly to these consumer preferences by offering a wide range of dried herb products in consumer-friendly packaging sizes and formats. The convenience of purchasing processed cheese for personal use contributes to the dominance of the B2C segment in the market.
Processed cheese Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American processed cheese market area will dominate this market. Processed cheese is convenient to use as it comes in pre-sliced or spreadable forms, making it easy to incorporate into sandwiches, snacks, or recipes without the need for grating or melting.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: PROCESSED CHEESE MARKET SHARE BY REGION 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's processed cheese market accounts for the second-largest market share. Europe has a long-standing tradition of cheese consumption, with various types of cheese being integral to European culinary culture. Processed cheese, with its convenience and versatility, appeals to consumers in Europe who appreciate cheese as a staple food item. Further, the German processed cheese market held the largest market share, and the UK processed cheese market was the fastest-growing market in the European region.
The Asia-Pacific Processed cheese Market is expected to grow at the fastest CAGR from 2024 to 2032. As incomes rise and lifestyles evolve in the Asia-Pacific region, there is a shift towards Westernized dietary patterns, including increased consumption of dairy products like cheese. The growing adoption of Western food preferences among consumers drives the demand for processed cheese in the region. Moreover, China’s processed cheese market held the largest market share, and the Indian processed cheese market was the fastest-growing market in the Asia-Pacific region.
Processed Cheese Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the processed cheese market grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the processed cheese industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global processed cheese industry to benefit clients and increase the market sector. In recent years, the processed cheese industry has offered some of the most significant advantages to home. Major players in the processed cheese market, including Kraft Heinz Foods, Arla food ingredients, Lactalis Group, Fonterra Foods, Savencia Fromage & Dairy, The Bel Group, Associated Milk Producers, Inc., Mondelez International Inc., Sargento Foods Inc., Almarai-Joint Stock Company, and others, are attempting to increase market demand by investing in research and development operations.
Kraft Heinz Foods is a traditional multinational meals and beverage business enterprise that was established through the merger of Kraft Foods Group and Kraft Heinz Foods Company. With a wealthy historical past spanning over a century, Kraft Heinz has hooked up itself as one of the world's most important producers of packaged food and beverages. The business agency's extensive portfolio consists of iconic manufacturers together with Kraft, Heinz, Oscar Mayer, Philadelphia, Planters, and Capri Sun, amongst others, offering a big variety of merchandise spanning several categories, which incorporates cheese, condiments, snacks, drinks, and frozen food. Leveraging its worldwide presence and sturdy distribution network, Kraft Heinz Foods keeps innovating and adapting to converting purchaser selections and, at the same time, is very last dedicated to turning in notable, available, and delicious food and beverage answers to clients globally.
Arla Food Ingredients is a global leader in supplying brilliant dairy components and solutions to food and beverage manufacturers globally. With a focal point on innovation, sustainability, and collaboration, Arla Food Ingredients gives a diverse range of dairy-primarily based ingredients, which include whey proteins, permeate, lactose, milk minerals, and specialized proteins tailor-made to satisfy the unique desires of its customers. The agency's sizable portfolio of substances unearths programs in various meals and beverage classes, along with dairy products, bakery, confectionery, little one vitamins, sports nutrition, and medical nutrients. Arla Food Ingredients is dedicated to using value for its clients via progressive product development, advanced fine, and sustainable sourcing practices, even as selling the nutritional benefits of dairy elements to customers globally.
Key Companies in the processed cheese market include
- Kraft Heinz Foods
- Arla food ingredients
- Lactalis group
- Fonterra Foods
- Savencia Fromage & Dairy
- The Bel Group
- Associated Milk Producers, Inc.
- Mondelez International Inc.
- Sargento Foods Inc.
- Almarai-Joint Stock Company etc.
Processed cheese Industry Developments
In 2024, Kraft has introduced a new line of plant-based cheese slices under its Kraft Singles brand. These are designed to offer the familiar taste and meltability of processed cheese but made with plant-based ingredients.
In 2023, Sargento expanded its Balanced Breaks line to include options with added protein. These products combine processed cheese with nuts and other protein-rich snacks for a convenient, high-protein snack.
Processed Cheese Market Segmentation
Processed cheese Cheese Type Outlook
- Blue Cheese
- Brick Cheese
- Camembert Cheese
- Cheddar Cheese
- Cottage Cheese
- Cream Cheese
- Mozarella Cheese
- Romano Cheese
- Swiss Cheese
- Others
Processed Cheese Form Outlook
- Cheese Blocks
- Triangle
- Rectangle
- Circle
- Square
- Cheese Slice
- Cheese Spread
- Cheese Spray
Processed cheese Milk Source Outlook
- Cattle Milk
- Goat Milk
- Sheep Milk
Processed cheese End-Use Outlook
- Retail / Household
- HoReCa
- F&B Processors
- Snacks Manufacturers
- Bakery and Confectionery Products Manufacturers
- Sauces and Condiment Manufacturers
- Ready Meal Manufacturers
- Packaged Food Manufacturers
- Others
Processed cheese Distribution Outlook
- Business to Business(B2B)
- Hypermarkets and Supermarkets
- Club Stores
- Discounters
- Grocery Retailers
- Convenience Stores
- Online Stores
Processed cheese Regional Outlook
- North America
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
Report Attribute/Metric |
Details |
Market Size 2023 |
USD 16.9 Billion |
Market Size 2024 |
USD 17.6 Billion |
Market Size 2032 |
USD 25.1 Billion |
Compound Annual Growth Rate (CAGR) |
4.50% (2024-2032) |
Base Year |
2023 |
Market Forecast Period |
2024-2032 |
Historical Data |
2020- 2023 |
Market Forecast Units |
Value (USD Billion) |
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
Segments Covered |
Cheese Type, Form, Milk Source, End-Use, Distribution, and Region |
Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
Countries Covered |
The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
Key Companies Profiled |
Kraft Heinz Foods, Arla food ingredients, Lactalis Group, Fonterra Foods, Savencia Fromage & Dairy, The Bel Group, Associated Milk Producers, Inc., Mondelez International Inc., Sargento Foods Inc., Almarai-Joint Stock Company |
Key Market Opportunities |
Growing disposable incomes and rising urbanization in developing countries present significant market potential. |
Key Market Dynamics |
Consumers are demanding products with fewer artificial ingredients and cleaner labels, prompting the use of natural flavors and colors in processed cheese. |
Frequently Asked Questions (FAQ) :
The Processed Cheese Market size was valued at USD 17.6 Billion in 2023.
The global market is projected to grow at a CAGR of 4.50% during the forecast period, 2024-2032.
North America had the largest share in the global market
The key players in the market are Kraft Heinz Foods, Arla Food Ingredients, Lactalis Group, Fonterra Foods, Savencia Fromage & Dairy, The Bel Group, Associated Milk Producers, Inc., Mondelez International Inc., Sargento Foods Inc., Almarai-Joint Stock Company
The Cheddar Cheese category dominated the market in 2023.
The Cheese Slice had the largest share in the global market.