The global vegan cheese market is expected to grow at a CAGR of 8.91% over the forecast period to reach a total market size of US$4.578 billion by 2025, increasing from US$2.743 billion in 2019. Vegan cheese is often called plant-based cheese for consumers who are lactose intolerant and want to go animal-free. Growing health-consciousness among consumers, dietary restrictions, and popularity in veganism is supplementing the demand for vegan cheese products globally. Besides, growing consumer inclination toward veganism in various parts of the world is anticipated to boost the adoption of vegan cheese over the forecast period. However, the relatively high price of plant-based products compared to dairy is expected to retrain the growth of the market in the coming years.
Rising consumer awareness
Growing awareness about the negative impact of high meat consumption on the environment is one of the major factors behind the rising popularity of plant-based products, including vegan cheese. Greenhouse gas emissions due to grazing are pressurizing the whole world to increase focus on plant-based products which in turn is driving the growth of the vegan cheese market. Rapid shift towards vegan diet adoption is also boosting the demand for cheese along with other plant-based protein products in various parts of the world. Moreover, the absence of artificial sweeteners and chemical additives is also leading manufacturers and customers to opt for plant-based products over animal-based.
Increasing cases of lactose intolerance are driving the growth of the vegan cheese market
In recent years, the demand for vegan cheese has substantially increased on account of the growing number of lactose intolerance cases in developed economies like the United States, the United Kingdom, and Germany. The rising concerns towards animal-based products due to both social and ethical reasons are further boosting the demand for plant-based cheese during the forecast period. Additionally, the prominent market players are investing heavily in research and development for the new product development which is anticipated to widen up the growth opportunities for new players entering the market.
Furthermore, due to COVID-19 pandemic consumers are demanding more plant-based product at a rapid pace, and that vegan cheese could be on a similar trajectory in various parts of the world. In the two quarters of 2020, retail sales of plant-based cheese in developed economies like the United States, and Canada witnessed an exponential rise. Recent investments in plant-based cheese production support the category’s is growing momentum in various parts of the world.
Understanding the European market
A plant-based lifestyle is becoming increasingly popular in Germany and people are shifting from animal protein diet to plant-based diet. Rising health awareness towards a plant-based diet supported by the increasing investments in the plant-based food businesses is expected to drive the German rice protein market during the forecast period. Besides, increasing product launches offering a wider variety of solutions to consumers, and rising trends towards sustainability are further anticipated to boost the rice protein market in the country.
France is the third-largest economy in the continent after Germany and the UK. An established food and beverage industry coupled with the growing investments in the new food production lines are considered as the major driving factor of the France rice protein market. In a country like France where eating cheese is almost a religion, and meat is considered as an essential part of a meal, having vegan food in the country was like an uphill battle in the past few years. Rising awareness of the negative health effects of animal consumption and growing sensitivity among consumers are positively contributing to the rice protein market growth. Also, companies such as Carrefour which is one of the leading supermarkets in the country opened new stores in Paris with 1/3rd of the shop dedicated to vegan and organic food. Such efforts by market players are anticipated to boost the demand for plant-based proteins in the country further augmenting the market for rice protein in the coming years. Italy has been witnessing rising investments in the retail business where market players are investing heavily, including super-smart chains like Coop which is the leader in grocery retail in the country and has certified vegan products under its brand invests well in plant-based protein segments which are anticipated to boost the market for rice protein in the coming years.
In countries like Canada, China, and India who are still at a nascent stage as both Chinese and Canadians are still preferring animal-based products over plant-based alternatives. However, social pressure to reduce meat consumption is resulting in the adoption of plant-based protein diets among more population, supported by regulatory recommendation, for instance, in the new Canada Food Guide that encourage meatless meals. Also, companies are investing in these countries aiming to have a competitive edge over competitors. For instance, in Canada, Ottawa has invested $150 million in Canada’s plant protein industry through its $950 Supercluster initiative, recommending people to eat more plant-based products. All these factors will spur the overall growth of the vegan or plant-based cheese market during the next five years. The increased presence of the vegan population is even forcing restaurants to consider new approaches to serving protein-based alternatives to their customers.
July 2020: Los Angeles-based vegan cheese company Grounded Foods announced that it has raised a US$1.74 million funding led by alternative protein venture capital Stray Dog Capital intending to expand the production and distribution of its fermented cauliflower and hemp seed plant-based cheeses.
May 2020: The United States-based vegan company GOOD PLANeT Foods raised nearly US$12 million in a Series A funding led by venture capital firm Cleveland Avenue along with the participation from other investment firms also.
April 2020: Schuman Cheese announced the launch of its new plant-based division “Vevan Foods” which is the Wisconsin cheesemaker’s introduction to the non-dairy cheese category.
April 2020: Miyoko’s Creamery debut its newest vegan cheese line at Whole Foods Market, with other retailers and is planning to launch new products in the coming time.
February 2020: Legendary vegan brand Tofurky expands its sub-line Moocho with new vegan cheese products. The new products are expected to include three more flavors of vegan cheese shreds (Mozzarella, Cheddar, and Fiesta Blend) and three further flavors of cream cheese (Plain, Garden Vegetable, and Strawberry).
January 2020: Sweden based startup company Noquo foods announced that it raised €3.25 million to fund what it believes as an attempt to make a better plant-based cheese factory.
July 2018: the United Kingdom-based pizza company Purezza planning to set up a facility to produce dairy-free mozzarella cheese.
The overall vegan cheese industry is expanding tremendously. It offers various opportunities for new entrants owing to a continuous shift in consumer preferences towards a healthy lifestyle around the globe. Also, with the rising application in various industry is widening up the growth opportunities for the vegan cheese producers in various parts of the world. Also, the market factors such as the increasing number of product launches and investments by major players, and development of demand through marketing, and local infrastructure are projected to influence the whole value chain of the vegan cheese. In addition, companies are directly involved in retailing and are investing in e-commerce channels to gain benefits from growing market penetration. Furthermore, consumer buying behavior has reshaped in recent years with growing varieties, and online retailing discount offers have impelled consumers to prefer online retail.
Prominent/major key market players in the global vegan cheese market include Hope Foods, LLC, GOOD PLANeT Foods., Kite Hill, Angel Food, Miyoko's Creamery, Green Vie Foods, Tofutti Brands, Inc, Bute Island Foods Ltd, Daiya Foods Inc, WayFare Foods, Gardener Cheese Company, VioLife, and Galaxy Nutritional Foods, Inc. The number of players in the vegan cheese market is limited and is growing with the opportunity to generate significant revenues because of growing demand in various parts of the world. The players in the global vegan cheese market are implementing various growth strategies like a product launchand online discount schemes to gain a competitive advantage over its competitors in this market. Major market players in the global vegan cheese market have beencovered exhaustively along with their relative competitive position and strategies and the report also mentions recent deals and investments of different market players over the last couple of years. The company profiles section details the business overview, financial performance (public companies), strategies, and key products and services being offered along with the recent deals and investments of these important players in the global vegan cheese market.