U.S. Cheese Sticks Market Size, Share & Trends Analysis Report By Source (Organic, Conventional), By Product, By Product Type (Kids, Adults), By Distribution Channel (Foodservice, Retail), By Region, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The U.S. cheese sticks market size was valued at USD 1.51 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.1% from 2023 to 2030. Cheese has been an essential part of people’s diet for centuries and it is set to remain so for many years to come. The importance of cheese is playing a pivotal role in driving the demand for cheese snacks. Cheese innovation is motivated by the healthy snacking trend, which is fueled by busy lifestyles and urbanization. Consumers are willing to try new tastes in cheese sticks, and market players are introducing various products to boost the demand for cheese snacks in the market. Cheese either alone or as an ingredient is ubiquitous across most snacking domains and is considered a nutritious and appetizing snack.

Additionally, evolving trends coupled with shifting consumer food preferences in the food & beverage industry are driving the demand for cheese sticks. Snack-sized portions, recipes, and ideas for using cheese in cooking, and education on cheese varieties can prove effective at increasing purchase and consumption among young adults. Kids, millennials, and working professionals are highly likely to express interest in these concepts and are generally more likely than their older counterparts to pay more for convenient forms such as sliced or shredded cheese snacks. While taste is a primary motivation, a variety of other reasons factor into the decision to eat cheese sticks. The protein and calcium content in cheese keeps consumers thinking of it as a healthy snack, thereby driving its demand.

With gourmet snacking also on the rise, cheese is already the fastest-growing savory snack consumers reach out for between meals. Also, schools are incorporating cheese sticks into their meal menu to increase the serving options during break time. In addition, big American chains such as TGI Friday, McDonald's, and Burger King have added cheese sticks to their menu to serve their customers with better options. Moreover, unconventional eating has increased among consumers across the nation owing to busy and demanding schedules. In addition, consumers frequently snack throughout the day. Owing to such factors, convenience has become a key feature for both on-the-go consumers as well as manufacturers, which, in turn, has driven the demand for cheese sticks.

Cheese sticks have received a major demand among consumers who are health conscious as one of the naturally functional whole foods that have been proven good for health. Recently, a jump has been observed by the snacking sector in new product development for better-for-you snacks owing to the constant search for healthy food by health-conscious consumers that are low in sugar and can be consumed on the go. Consumers’ attitudes are now changing and the opportunity for nutrition, as well as pleasure, is being taken up by emerging categories. Consumers all across the globe are switching from sugary snacks to healthier alternatives such as cheese sticks, thus creating lucrative opportunities for cheese sticks in the market.

Consumers across the country associate cheese flavor with indulgence, comfort, and freshness. In August 2022, Kerry Group plc was surveyed to learn more about snacking behaviors as they relate to savory snacks that have cheese flavor. A positive perception of cheese flavors in savory snacks has been found among the consumers in the research. Around 62% of consumers believed that cheese makes savory snacks interesting. While 77% of consumers said that taste is one of the prominent reasons they love cheese, preferences vary across markets and geographies. According to the same source, indulgence is a key driver that has increased the demand for cheese sticks among consumers. Parmesan, mozzarella, and cheddar are popular among consumers in the U.S. Market players are also innovating this space and bringing new flavors across a variety of savory cheese sticks as they bring indulgence and innovation to consumers.

Cheese sticks are among the fastest-growing categories across the country as consumers want healthy, yet indulgent options. Market players are trying to study consumer demand that drives demographic profile preferences, which would provide them a competitive edge in the highly competitive market along with developing snacks that are both healthy and indulgent. Sales of savory snacks including yogurt, and cheese sticks are showing strong growth. With consumers now reducing their sugar and meat intake, savory snacks are growing in popularity, with supermarkets witnessing increased sales. This signals a shift in consumer mindset toward the consumption of convenient and indigenous snacks. Most players are investing in R&D to make these snacks healthy and portable for consumers.

Source Insights

The conventional segment dominated the market with the higher share of over 90% in 2022. The increased snacking trend that emerged in the U.S. during the pandemic is expected to drive the growth of the cheese sticks market. According to a survey conducted by Mondelēz International in 2021, nearly half of all adults (46%) snacked more during the pandemic owing to changes in eating habits. The opportunity for on-the-go snacking is also expanding owing to increased tourism in the U.S. Long travels need exciting and delectable food to alleviate boredom and give convenient on-the-go nourishment. This is propelling the sales of conventional cheese sticks.

The organic segment is anticipated to grow with a faster CAGR of 9.3% in the forecast period. The increased consumption of organic food products in the U.S. is anticipated to propel the growth of the organic cheese sticks market. Organic food products were already a growing trend in the U.S., but this trend has picked up speed since the outbreak of coronavirus as consumers are more focused on eating healthy food products. According to data published by magazine, The Packer, the sales of organic food products in the U.S. are expected to rise by 5-10% in 2022. Furthermore, the greater availability of organic snacks has narrowed the price gap between conventional and organic snacks, resulting in increased affordability and sales of organic cheese sticks.

Product Insights

The mozzarella sticks segment dominated the market with the highest share of over 55% in 2022. The increasing preference for convenience food products such as mozzarella sticks during barbecue parties and outdoor cooking in the U.S. is expected to drive the growth of the cheese sticks market. According to Saputo Foodservice, the most loved cheese among consumers is mozzarella followed by cheddar. Mozzarella is a preferred go-to snacking option along with being used in preparing pizzas. Its unique taste and attributes make it appealing across a variety of its applications.

The marble sticks segment held a considerable share of the market in 2022 and is anticipated to grow with the fastest CAGR of 8.6% over the forecast period from 2023 to 2030. Marble cheese sticks are a blend of mild flavors and creamy textures, which is perfect for on-the-go snacking and school meals. Marble cheese sticks have a prominent place in packed lunches for kids and adults. The nutritional importance of dairy in school lunch programs continues to propel the market growth of marble sticks in the U.S.

Product Type Insights

The adults segment dominated the market with a higher share of around 60% in 2022. An increasing number of U.S. adults enjoy a snack every day and cheese sticks offer the same convenience with far superior flavors. The growth of this segment is also attributed to the increased demand for ready-to-eat and convenient snacks in recent years due to hectic and ever-busier consumer lifestyles. Several market players in the U.S. are focusing on developing shelf-stable cheese snacks including cheese sticks. For instance, in May 2022, Moon Cheese (NutraDried LLC) introduced new sticks to its lineup, available in five flavors, including Wild White Chedda', Cheesy Does It, Rowdy Ranch, Kick It Up a Nacho,  and Yum Inferno.  

The kids’ segment is anticipated to expand at the fastest CAGR of 7.3% over the forecast period from 2023 to 2030. In recent years, with economic development and consumption upgrades, kids cheese sticks have become increasingly preferred by parents due to their high nutritional content, good taste, and availability in a variety of shapes and sizes. Parents are considering low-fat dairy foods such as cheese sticks, which are healthy, filling, and tasty snacks for children. They prefer cheese sticks that are made with non-GMO and natural ingredients and contain calcium and protein, which helps with bone growth. Owing to such advantages, demand for cheese sticks for kids has soared in the recent years.

Distribution Channel Insights

The retail segment led the market with a higher share of over 70% in 2022. The growth of the segment is attributable to the increasing product launches through supermarkets, convenience stores, and online platforms. Further, several offline stores are focusing on capacity expansions and collaboration to promote product growth, which is boding well for the segment’s growth. Moreover, owing to the strong influence of social media among millennials and adults in the U.S., online platforms are evolving. Growing internet penetration has escalated the demand and sales of cheese sticks in the U.S. As a result, demand for cheese sticks through online portals is increasing.

The foodservice segment is anticipated to grow with a faster CAGR of 8.6% in the forecast period. In recent years, several major players have been entering the franchise phase and expanding their reach to universities, schools, colleges, and residential areas to target kids, students, adults, families, and consumers of all age groups. Many colleges also offer cheese sticks, particularly mozzarella cheese sticks, in lunches and meals. An increasing number of food service installments are selling cheese sticks on college premises as young consumers and college-going students are the target consumers. The convenience and portability of snacks and the rising demand for quicker bites over bigger meals have led to an increase in the consumption of cheese sticks among students.

Key Companies & Market Share Insights

Key players operating in the market are adopting various steps to increase their presence in the market. These steps include strategies such as partnerships, mergers & acquisitions, global expansion, and others. For instance, in May 2021, Saputo Inc. announced the acquisition of Bute Island Foods Ltd. The initiative was taken by the company to expand its footprint in the dairy alternatives market owing to changing consumer preferences and demands. Some of the prominent players in the U.S. cheese sticks market include:  

• Saputo Inc.

• Lactalis American Group, Inc.

• Organic Valley

• Danone S.A.

• The Kraft Heinz Company

• J.D. Irving, Limited (JDI)

• Rich Products Corporation

• John Wm. Macy's Inc.

• SARGENTO FOODS INCORPORATED

• POST HOLDINGS, INC.

U.S. Cheese Sticks Market Report Scope

U.S. Cheese Sticks Market Report Segmentation

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segment from 2018 to 2030. For this study, Grand View Research has segmented the U.S. cheese sticks market on the basis of, source, product, product type, and distribution channel:

• Source Outlook (Revenue, USD Million, 2017 - 2030)

  • Organic

  • Conventional

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Mozzarella Sticks

  • Cheddar Sticks

  • Marble Sticks

  • Others

• Product Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Kids

  • Adults

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Foodservice

    • K12 School

    • College

    • Hospitals

    • Others

  • Retail

    • Hypermarkets & Supermarkets

    • Convenience Stores

    • Online

    • Others