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Vegan cheese market to grow at 8.6% CAGR over the next 10 years

The global vegan cheese market size was valued at $2.1 million in 2019, and is forecast to grow at a CAGR of 8.6% between 2019 and 2028. Rising disposable income of consumers, coupled with their willingness to spend on premium products, are driving the market and creating new commercial opportunities for dairy alternative businesses.

 

Key considerations

  • The expansion of plant-based food industry will support the growth of the vegan cheese market. With the demand for plant-based alternative rising, the market is likely to report impressive growth through the course of the forecast period.
  • In terms of distribution channel, the vegan cheese market is broadly categorised into direct and indirect sales channels. Of these, the indirect sales segment holds dominant vegan cheese market share.
  • Among indirect sales segments, convenience store is likely to emerge as the most attractive segment.
  • Among product types available in the market, the demand for mozzarella vegan cheese is expected to remain high owing to its versatility of use in different recipes.
  • On the basis of source, the almond milk segment is forecast to witness highest growth.

Leading players are focusing on expanding their geographic presence, besides launching novel products to gain competitive advantage. In addition to these, several companies are offering cost-effective products to woo their consumers.

Rising incidence of lactose intolerance to fuel demand for vegan cheese

A considerably large section of population around the world is lactose intolerant. People with lactose intolerance can rarely enjoy delicacies prepared with milk or milk-derived ingredients. It is due to this that the demand for vegan cheese is on a rise. Vegan cheese is a plant-based dairy alternative, particularly suitable for those suffering from lactose intolerance. Against this backdrop, an increasing number of hotels, restaurants, and cafes have started introducing vegan cheese in their menu to attract consumers who prefer vegan diets and those who are lactose intolerant.

Increasing disposable income of consumers supporting purchases

In the last couple of years, consumers’ willingness to spend on exotic and humane plant-based diet has greatly increased. In addition to this, a stable increase in the demand for novel food alternatives is noticed. They are motivated by various advertisements and campaigns to obtain essential nutrients from plant-based alternatives, and this decision is supported to an extent by their increasing disposable income.

Who's winning?

Despite witnessing impressive growth opportunities, lack of awareness is a key factor limiting the market’s expansion in developing and underdeveloped regions. As a result of this, conventional dairy products continue to remain popular in several potentially lucrative markets. This is a chief factor restraining the market’s expansion.

Nonetheless, the market players are likely to overcome this challenge as they invest in marketing strategies besides innovating healthier and more cost-effective vegan cheese. Also, concerns pertaining to animal welfare is expected to tip scale in favour of veganism, in turn bolstering growth opportunities for the vegan cheese market.

Some of the leading players operating in the vegan cheese market are Daiya Foods, Follow Your Heart, Go Veggie, Parmela Creamery, Kinda Co., Bute Island Foods, Vtopian Artisan Cheeses, Kite Hill, Miyoko’s Kitchen, Vermont Farmstead, and Good Planet Foods.

These insights are based on a report on Vegan Cheese Market published by Future Market Insights.

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