USA Vegan Cheese Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Source (Soy Milk, Almond Milk, Coconut Milk, Others), By Product Type (Mozzarella, Parmesan, Cheddar, Others), By Distribution Channel (Online, Offline (Hypermarkets, Others)), And By States - Forecasts From 2023 To 2028

The US vegan cheese market is projected to witness a compound annual growth rate of 10.55%, growing to US$ 567.216 million by 2028, from US$ 281.140 million in 2021.

The increase in health-conscious customers adopting plant-based diets has resulted in a thriving vegan cheese sector in the United States. Demand for alternatives to traditional dairy products is being driven by concerns about sustainability and growing environmental consciousness. Furthermore, increased availability and better taste and texture have led to a wider acceptance of vegan cheese. Plant-based diets have become more popular because of influencers' influence and celebrity sponsorships. The market is growing even faster owing to governmental backing and investments in the plant-based industry.

In addition, demand for vegan cheese is rising in the USA due to health and wellness trends, as customers look for plant-based, clean-label, and ethically sourced substitutes. In response, the market introduces novel products that prioritize sustainability and nutritional advantages, catering to the interests of consumers who prioritize their health. The market for vegan cheese is expanding because of marketing efforts that highlight these trends.

Increasing awareness of lactose-intolerance

People are becoming more conscious of lactose sensitivity and are looking for dairy-free options, which is driving up the demand for vegan cheese. Being plant-based and dairy-free, vegan cheese directly addresses this market niche and offers a good substitute. The popularity and accessibility of vegan cheese in mainstream markets have been fueled by its acceptance as a viable choice for individuals with lactose intolerance, which has further fueled the rise of the vegan cheese business in the United States.

The inability of the body to completely digest lactose, a sugar present in milk and dairy products, is known as lactose intolerance. After eating meals high in lactose, common symptoms include bloating, diarrhoea, and abdominal pain. Most people with lactose intolerance treat their disease by consuming dairy alternatives or using lactase tablets to help with digestion.

As per the National Library of Medicine, in the United States, compared to White Americans, some ethnic groups African Americans, American Indians, Hispanics or Latinos, and Asian Americans have far higher rates of lactose intolerance. The lowest rates, which range from 2% to 15%, are seen in White Northern Europeans, Australians, and North Americans. Conversely, 50% to 80% of South Americans, 100% of American Indians and some East Asians, and 60% to 80% of Ashkenazi Jews and Africans are lactose intolerant.

Many patients do not exhibit intolerance symptoms until late adolescence or early adulthood. Native Americans, Asian Americans, African Americans, and Hispanics/Latinos are acknowledged to exhibit earlier presentation compared to White Northern Europeans, Australians, and North Americans. Children are more likely to get the secondary condition, especially in developing nations where infections are a common cause.

The best way to treat lactose intolerance is to combine eliminating foods that contain lactose with taking a supplement to help with lactose digestion. Those who are intolerant to lactose ought to consult a dietitian to go over the lactose sources in their diet. Usually, a decrease in the amount of lactose consumed each day is necessary. Furthermore, a commercially available, non-prescription lactase supplement is advised to be taken at the time of lactose ingestion by anyone planning to consume lactose-containing foods.

The online distribution channel is expected to grow steadily. 

Online channels consisting of e-commerce sites and the company’s online portals prove to be much more cost-effective in comparison to retail stores and hypermarkets. The growing omnichannel marketplace in the United States coupled with the increasing internet penetration has provided a major boost to the adoption of online distribution channels. For instance, according to the World Bank’s data, in 2021, 92% of the US population used the Internet which represented a 6% increase over 2016’s percentage . Moreover, as per the Plant Based Food Association, 2021, online sales witnessed a 47% increase in 2021. Also, rapid urbanization and improvement in lifestyle have further bolstered e-commerce shopping which is anticipated to cause an upward market trajectory. For instance, according to the U.S. Department of Commerce, in Q3 of 2023, the US retail e-commerce sales reached at US$84.13 billion which signified a 2.3% increase over Q2 of 2023.

Likewise, the growing smartphone penetration to optimize the growing 5G technology has further paved the way for future market growth. As per the GSM Association’s “Mobile Economy North America 2023” report, 5G adoption rate in the USA is anticipated to reach up to 59% by the end of 2023 making the country among the leading 5G adoption nations. Besides growing internet and smartphone penetration, the well-established presence of online e-commerce sites such as VeganEssentias which deals specifically in selling vegan food items inclusive of vegan cheese is also acting as an additional driving factor for the overall market growth.

Market Key Developments

• In June 2023, the world's first and largest oat milk company, Oatly Group AB announced the statewide launch of its newest product in the US, a delicious plant-based cream cheese. Oatly's newest culinary creation, Plain and Chive & Onion, breaks the taste code by providing all the tangy, salty flavor of a "traditional" cream cheese without any dairy at all. 
• In November 2023, in terms of stretch and melt, PerfectaSOL D 520, a plant-based cheese ingredient, surpassed two popular commercial equivalents, setting a new benchmark for vegan pizza cheese. In addition to tasting great, PerfectaSOL D 520's plant-based pizza cheese replicates the desirable stretch and melt of conventional, animal-based pizza cheese for consumers.
• In May 2021, Saputo Inc. announced the completion of two strategic acquisitions, amounting to about CDN$187 million, in the dairy alternatives and value-added ingredients categories

Segmentation:

• By Source
  • Soy Milk
  • Almond Milk
  • Coconut Milk
  • Others
• By Product Type
  • Mozzarella
  • Parmesan
  • Cheddar
  • Others
• By Distribution Channel
  • Online
  • Offline
    • Hypermarkets
    • Others
• By States
  • Nevada
  • California
  • Oregon
  • Florida
  • Others