Australia vegan cheese market was valued at US$25.428 million in 2020.
The aforesaid is in part substantiated by the growing popularity of vegan, vegetarian, and flexitarians that the entire world is witnessing. On the other hand, there is a robust demand for cheese across the nation, with cheese consumption in 2020 forecasted to increase around 1 percent to 299,000 MT [Source: USDA]. On the other hand, the Australian national public health service - Healthdirect Australia, has set out the benefits of a vegetarian diet and recommends means by which it is possible to get more quantity of nutrients on vegan diets, among others. It also mentions that recommendations by the Government of Australia are intended for infants who are on a vegan diet. Coupled with the aforesaid factors is the shift of consumers in Australia's mindset and adopting a back-to-basics consumption inclination which is focused on simple ingredients with fewer artificial or processed foods [ Source: USDA]. Thus, the developments above are conclusively conducive to Australia's vegan cheese market growth.
Further plant-based consumption is gradually becoming the new normal and is expected to further augment the vegan trend, especially due to the increase in health consciousness as one of the COVID-19 aftermaths. Certain recent market developments (both pre-and post-pandemic) across the nation as a response to vegan consumption habits are a testimony to those described above. For example, in August 2020, it was announced that Grounded Foods, a vegan cheese brand that has around 30 different varieties of cheese in its portfolio, plans to launch its products in Australia, the country of its inception. The product rollout plan of the organization is to launch a direct-to-consumer offering after going through food service, which it launched in New York, as well as establish an independent supply chain in Australia. Earlier in October 2019, it was reported that California-based Miyoko’s Creamery recently expanded distribution to Australia by way of 400 Woolworth’s grocery stores, one of the country’s largest retailers. Included in the offerings are European Style Cultured, and Classic Vegan Cream Cheese, among others. The organization's launch in Australia is a part of its global expansion strategy. Further, in tandem with the trend where an increasing number of consumers are embracing meat alternatives and introducing vegetarian and vegan-friendly options into their weekly diets, including adding plant-based foods that don’t compromise on taste, quality, or price, Australia’s largest retailers are increasing their vegan retail offerings which pertain to vegan cheeses. For example, in February 2018, it was reported that Woolworths was all set to stock Sheese’s range of cheesy slices, shreds, and blocks. Again, in July 2018, it was reported that Coles, one of Australia’s leading supermarkets, is developing a new shopping experience and items to cater to a healthier, more plant-based customer demographic. The retailer with a huge presence has decided to open 120 boutique convenience stores within the next few years. Thus, from the aforesaid spectrum of developments, it can be conclusively delineated that the Australian vegan cheese market is projected to witness substantial growth during the next few years.
Impact of the COVID-19 pandemic
Most businesses were badly hit due to the COVID-19 pandemic. With the stoppage of most major industries, the global economy reported a downward trend. The Australian vegan cheese market also reported an initial slowdown in sales, but saw an increase in demand, owing to the increasing adoption of food delivery and online shopping. This led to steady growth of the market. Further, as most countries have started to withdraw their COVID-19 protocols, the vegan cheese market is expected to report strong growth in the coming years.
China emerged as a fast-growing vegan cheese market, due to the COVID-19 pandemic. Owing to the increasing food safety concerns, health consciousness, and growth in online sales, the Chinese market has reported strong demand for a plant-based protein market. According to the Australian Trade and Investment Commission, 39.8% of the plant-based protein products in China are imported. As a result, Australian businesses have access to a rapidly expanding export market. This covers plant-based beverages (such as almond milk), plant-based dairy (such as cheeses and yogurt), and plant-based meat manufacturers in Australia.
Key Developments and Product launches in the region
Vegan and plant-based products have been growing in demand in Australia. This has led to substantial developments in the vegan cheese market.
Miyoko's Creamery recently announced its partnership with Mercy for Animals (MFA) and Animal Outlook (AO) to develop the first toolkit dedicated to assisting farmers in their transition away from industrial animal agriculture and toward crop production. The Farmer Toolkit will provide farmers with the necessary skills to transition to plant-based farming, ensuring that their employment and farms are protected as they exit the animal agriculture business. Miyoko’s Creamery entered the Australian market in 2019. Since then, they have reported positive feedback from the regional market.
Under the BioCheese brand, MyLife, an Australian plant-based food company, has released a selection of vegan cheese products at Coles stores in 2020. Four new items have been added to the brand's current line of plant-based cheddar blocks and slices, feta, halloumi, and dairy-free butter, including a marinated cheese and a shredded version of its vegan parmesan.
Woolworths last year announced that it has increased the number of vegan cheese and meat options available in over 1000 stores across Australia. This step was announced after the massive success of the dairy and meat-free food alternatives that the supermarket offers.
Grill’d, a healthy plant-based Australian burger chain recently announced the launch of three Fable burgers, made with began cheese and vegan mayo. The burgers namely- the Fable Spicy Cheeseburger, Fable Truffle, and Fable Southern BBQ, have been introduced as permanent menu items for the burger chain.
Segmentation