Vegan Cheese Market Size, Share & Trends Analysis Report By Product (Mozzarella, Cheddar, Parmesan, Ricotta, Cream), By Source (Cashew, Soy), By End-use (Household, Foodservice), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global vegan cheese market size was valued at USD 1.01 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 12.8% from 2020 to 2027. Increasing acceptance of veganism among the consumers, especially among the millennials, has been fueling the market growth over the world. Growing awareness about animal cruelty and the negative impacts on the environment caused by the dairy industry has encouraged consumers to opt for plant-based products. As a result, manufacturers have been offering a wide range of plant-based dairy alternatives, including vegan cheese, which is gaining shelf space in retail stores worldwide. Lactose intolerant people are one of the key consumers in the industry. As per the National Institutes of Health of the U.S., around 65% of the human population has difficulty digesting lactose, representing a vast targetable consumer base. With growing health awareness, consumers have been opting for dairy-free products.

Manufacturers worldwide are significantly investing in product innovation and acquisition to expand their product portfolio and meet the rising consumer demand. Furthermore, several large retail chains have extended their shelf space for plant-based products, considering the segment growth.

The emergence of flexitarian consumers, who are reducing meat and dairy consumption by replacing them with plant-based products, is expected to be a key driver in the market. Furthermore, the influence of social media and animal welfare rights organizations highlighting the impact of the production of dairy and meat products on the environment, animals, and consumer health is crucial for boosting the demand for vegan cheese. Furthermore, established players in the dairy market, such as Danone, have been entering the plant-based industry to capture the growing demand. Lack of resemblance in texture and taste between the plant-based dairy products and traditional dairy products is acting a key restraint in the vegan cheese market growth.

Source Insights

In terms of source, the cashew segment held the largest share of more than 35.0% in 2019. Many producers, including Gardener Cheese Company, Dr-Cow Tree Nut Cheese, Kite Hill, Tyne Chease Limited, VTOPIAN ARTISAN CHEESES, Miyoko's Creamery, Parmela Creamery, and Fresh Start Fauxmage, use cashew milk as a primary raw material for the product.

The soy cheese segment is expected to foresee strong gains over the forecast period as these products provide anticholesterolemic, antiatherogenic, and hypolipidemic properties. It is a low-cost substitute for dairy and it has a complete balance of desirable fatty acids and amino acids. In October 2019, Fuji Plant Protein Labs, a U.S.-based plant-based food manufacturer, launched a vegan cheese spread, CCSS, made with soymilk. It is a low cholesterol food product that can be used in cream sauces, soft spreads, baked goods, dips, and confectionaries. 

End-use Insights

The household segment led the market and accounted for more than 50.0% share of the global revenue in 2019. With increased consumer disposable income and willingness to spend on premium products, the use of plant-based cheese has soared in the household segment. The easy availability of the products in supermarkets and convenience stores has boosted the growth of this segment's growth.

The foodservice segment is expected to witness the fastest growth during forecast years with a CAGR of 13.2% from 2020 to 2027. Several restaurants, fast food chains, and casual dining venues have been incorporating plant-based foods and drinks in their menus owing to the rising popularity of a flexitarian and vegan diet. In 2016, a plant-based meal-kit delivery service, Allplants, started in the U.K. From 2016 till 2020, the company has served more than one million meals in the nation. The company has been planning to expand its market to Europe and North America by 2025.

Product Insights

Mozzarella held the largest share of more than 30.0% in 2019. Its extensive application in various recipes supports the growth of the product segment. Mozzarella is widely used in Italian cuisines, such as pasta, pizzas, croquettes, risotto, lasagna, and Caprese salad in the form of block, slice, cube, shreds, and spread. It is an integral ingredient of pizza owing to its texture and taste. Therefore, demand for mozzarella is significantly high in western countries, where Italian cuisines have strong popularity. In July 2020, Green Vie Foods launched vegan mozzarella cheese at Tesco supermarkets. The product is free from soy, gluten, and palm oil and won the BBC Good Food award.

Ricotta vegan cheese is expected to witness the fastest growth over the forecast period. Growing application of the product in Italian dishes, such as manicotti, lasagna, and ravioli, has been fueling the demand for the product. Baked ricotta is also gaining popularity among appetizers, pizza toppings, and desserts. Many established plant-based dairy producers, such as Kite Hill and Tofutti Brands, Inc., have incorporated ricotta in their product portfolio. In November 2018, NEW ROOTS AG, a Switzerland-based plant-based dairy company, launched “Free the Goat” ricotta cheese. “Free the Goat” is available in several retail stores in Switzerland, the U.K., Germany, and France.

Regional Insights

Europe accounted for the largest share of almost 40.0% in 2019. Germany and the U.K. are the major markets of the region. The high purchasing power of the consumers allows them to spend on premium food products, such as vegan alternatives, including plant-based cheese.

Asia Pacific is expected to witness the fastest growth during forecast years with a CAGR of 14.3% from 2020 to 2027. Changing consumer food habits and increasing health consciousness among the consumers of the region have been driving the demand for the product. China, Japan, and Australia are the key markets of vegan cheese in the region.

The growing demand for plant-based bakery and confectionary food in the Asia Pacific is expected to fuel the sale of products, including vegan cheese, in the upcoming years. Furthermore, increasing the inclusion of vegan foods among restaurants and cafes has been boosting regional market growth. For instance, in April 2018, Pizza Express, a popular pizza chain, added its first vegan food items to its Hong Kong menu. The pizza chain uses Daiya Foods Inc.'s product for its pizzas.

Key Companies & Market Share Insights

The vegan cheese industry has a large number of international and regional players. Product innovation is expected to be a key trend in the industry. In 2018, Valio Ltd. launched a new plant-based cheese line for the U.S. foodservice sector under its Oddlygood brand. Its products are manufactured with potato starch protein and coconut oils. One of the largest pizza chains in the Nordic Region, Koti Pizza, uses Oddlygood’s product. Furthermore, retail chains or supermarkets have been entering the dairy-free market with their private label products. In September 2017, J Sainsbury plc (Sainsbury’s) launched it “Free-From” coconut-based cheeses to capture the increasing demand for dairy-free foods. Some of the prominent players in the vegan cheese market include:

• Gardener Cheese Company

• Tofutti Brands, Inc.

• Violife

• Dr-Cow Tree Nut Cheese

• DAIYA FOODS INC.

• Kite Hill

• Tyne Chease Limited

• VTOPIAN ARTISAN CHEESES

• Miyoko's Creamery

• Parmela Creamery

Vegan Cheese Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global vegan cheese market report on the basis of product, source, end-use, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2027)

  • Mozzarella

  • Cheddar

  • Parmesan

  • Ricotta

  • Cream

  • Others

• Source Outlook (Revenue, USD Million, 2016 - 2027)

  • Soy

  • Almond

  • Coconut

  • Cashew

  • Others

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • Household

  • Food Processing

  • Foodservice

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

  • Europe

    • Germany

    • The U.K.

    • France

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa