Snacking Trends and Expanding Quick Service Restaurants Create Growth Opportunities
Out of the varied dairy and dairy-based products, cheese is a popular food product in commercial and household spaces. Its steadily rising consumption is partially driven by young demography and growing urban middle-class population. In 2017, the global milk output reached 811 million tonnes, which has significantly contributed to cheese production.
Cheddar cheese, a natural cheese with a sharp taste, is extensively used across cuisines. Used as an ingredient for everyday cooking and for commercial baking, the global cheddar cheese market has gained prominence in recent years. Quick service restaurants (QSR) and fast food chains selling pizzas, pastas, and burgers have given the global market a sizeable boost. It is used for making dips for a wide range of snacking options such as crackers, fried food, and savory snacks. Quick service restaurants have truly popularized cheddar cheese in a dip form. For instance, in 2020, McDonald’s in Brazil launched a bowl of melted cheddar cheese as a dip paired with the burgers. Expanding number of quick service restaurants coupled with rising trend of at home-snacking are expected to drive the global demand of cheddar cheese during the forecast period.
Diversified Product Range to Appeal to Consumer Taste becomes Winning Strategy
A drastic change in consumer buying behaviour over the years has had a positive impact on the global cheddar cheese market. A more health conscious has generated sizeable demand for high quality cheddar cheese, which offers low fat and claims to have nutritional benefits. Looking at the global demand of healthy products, cheddar cheese manufacturers are shaping their portfolio with a diversified product range.
For instance, The Kraft Foods Group, an American food giant, is offering live active cheddar cheese with probiotics. The product was launched to target a consumer segment who seek products which improve digestive health with the enhanced immune system. Along with health benefits, offering an appealing flavor has become a winning strategy. Flavored profile, especially designed according to the consumer taste and preferences, may create new growth opportunities for the cheddar cheese market.
Manufacturers Focused Towards Expanding Sales Via E-commerce Channels
Global cheddar cheese market is segmented on the basis of form, end user, sales channel, and region. Based on form, the market is segmented as crumbled, slice, block, and spread. The block segment is estimated to account for a leading share as it is widely used in restaurants. Processed food manufacturers are expected ramp up its production to fuel the segment growth over the forecast period.
By end use the market is segmented as household, food manufacturers, and hotels, restaurants and café (HoReCa). While by sales channel, the market is segmented as business-to-business and business-to-consumer segments. The business-to-consumer segment is sub-segmented into supermarket, specialty outlet, pharmacies/drugstores, and online. The effect of lockdown due to COVID-19 has changed the consumer mode of purchasing. Instead of store-based purchases, consumers are now depending on online sales channel. In order offer undisrupted supply of products manufacturers are also focused towards offering products through online sales channel.
For instance, in 2020 The Big Cheese launched new e-commerce website to sell its premium 12-15 year aged sharp cheddar cheese. These factors are expected to support the online sales channel growth over the forecast period.
Savory Flavored Bakery Snacks is Drive Market Growth in the European Region
Globally, Europe and North America are collectively expected to hold a lion’s share. High disposable income, increased product penetration, expanding number of health-conscious consumers are the few factors contributing towards the cheddar cheese market growth in these regions. Cheddar cheese demand is largely driven by the bakery industry in Europe, as confectionery items continue to be a part of staple diets. About 500 bakery products were introduced in Europe in 2019. Each of these used cheese as a flavour ingredient, driving up the demand for cheddar cheese by leaps and bounds.
Meanwhile, Asia Pacific region is expected to register relatively high CAGR over the forecast period. Countries such as China and India are expected to attain favorable growth in cheddar cheese market. Historically, dairy and dairy products are staple food for Indians. In addition, increased prevalence of dining out and shifting consumer preference for Italian cuisines is expected drive cheddar cheese market in India.
Global Cheddar Cheese Market: Key Players
Some of the major players studied in the global cheddar cheese market are Kraft Foods, Fonterra Cooperative Group, Rogue Creamery, Arla Foods amba, The English Cheese Co, MEGMILK SNOW BRAND, Saputo Cheese USA Inc, Sartori, Uncle Tobys, and Edendale Group (Chesdale).
Key Elements Included In The Study: Global Cheddar Cheese Market
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