The global vegan cheese market size is estimated to grow by USD 1,267.56 million from 2022 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 7.97% during the forecast period. Europe is estimated to account for 39% of the global market growth during the forecast period. The regional market has grown steadily in recent years, fueled by increasing demand for plant-based alternatives to traditional dairy products. European consumers opt for vegan and vegetarian diets for health and ethical reasons. Additionally, concerns about the environmental impact of the dairy industry and animal welfare have also contributed to the rising popularity of vegan cheese. Furthermore, the growing trend toward plant-based diets isn’t just limited to vegans and vegetarians. Hence, such factors drive market growth in the region during the forecast period.
Vegan Cheese Market – Segmentation Assessment Segment Overview
Technavio has segmented the market based on source (soy milk, almond milk, rice milk, and others), distribution channel (offline and online), and geography (Europe, North America, APAC, South America, and Middle East and Africa).
- The market share growth by the soy milk segment will be significant for overall market growth during the forecast period. Soymilk is plant-based milk, which can closely replicate the texture and flavor of cow’s milk, making it popular with vegan cheesemakers. Its vegan cheese is often viewed as a healthier and more sustainable alternative to traditional dairy cheese due to it is cholesterol-free and does not contribute to the environmental impact of dairy farming. For instance, some consumers may be willing to pay a premium for vegan cheese made from organic or non-genetically modified soybeans, while others may be willing to pay a premium for vegan cheeses without added vitamins and minerals. Hence, the soymilk segment of the global vegan cheese market is expected to grow during the forecast period.
Vegan Cheese Market – Market Dynamics
Key factor driving market growth
- An increasing number of organized outlets notably drives the vegan cheese market growth.
- Organized retail is growing in the market due to the establishment of convenience stores, supermarkets, hypermarkets, and specialty stores around the world.
- Various large retail chains have been fairly aggressive in expanding their geographic footprint by opening new stores over the past five years.
- Additionally, Germany, the USA, Australia, Canada, France, Belgium, Netherlands, and China are other countries with high levels of organized retail.
- Hence, the increase in outlets is expected to drive the growth of the market during the forecast period.
Leading trends influencing the market
- Increasing demand for vegan cheese is an emerging trend influencing the vegan cheese market growth.
- There is a growing awareness of the health benefits of a plant-based diet. With many people becoming more health conscious and looking for alternatives to traditional dairy products, which are often high in saturated fat and cholesterol, various products are low in fat and calories and often contain vitamins and minerals.
- The dairy industry contributes majorly to greenhouse gas emissions, deforestation, and water pollution. Resultantly, many consumers are turning to plant-based alternatives to reduce their carbon footprint and contribute to a more sustainable future.
- Hence, the availability and diversification of vegan products drive the demand for vegan cheese in the market and is expected to drive its growth forecast period.
Major challenges hindering the market growth
- The high cost and limited awareness are challenges hindering the vegan cheese market growth.
- The manufacturing process is more complex and requires special equipment and techniques, resulting in a higher overall cost.
- Moreover, the market is relatively small compared to the traditional milk-cheese market, so economies of scale are not as developed as in the dairy industry.
- And in order to address cost challenges in the vegan cheese market, companies are taking several steps, including investment in research and development, to create more cost-effective and scalable production methods.
- Hence, such factors are expected to negatively affect the growth of the market during the forecast period.
Also Read Sustainability of Olive Oil to be transformed as Bertolli and Carapelli Launch Initiatives
