Cheese Powder Market

[241 Pages Report] The cheese powder market is estimated at USD 630 million in 2023 and is projected to reach USD 895 million by 2028, at a CAGR of 7.3% from 2023 to 2028.

The cheese powder market is highly impacted by the increasing size of the convenience & fast-food industry and innovative offerings by cheese powder manufacturers. The growth rate of the fast-food industry is significant owing to the changing lifestyles of people around the globe. The US. is the dominant market in the fast-food industry and this trend is expected to continue. The emerging economies of the Asia Pacific region are the major markets for cheese powders and are increasingly contributing to their demand, owing to the rising disposable income, rapidly increasing population, and an increase in the demand for processed foods in these countries. The widespread impact of western cuisines on developing regions such as Asia Pacific and Latin America has led to a tremendous increase in demand for cheese-based fast-food products. Moreover, constant innovations offer investment opportunities to cheese powder manufacturers. On the other hand, rising awareness about the ill-health effects of cheese such as obesity, high cholesterol levels, and heart problems, and stringent government regulations for labelling cheese.

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Drivers: Expansive globalization of cuisines

The blending of modern methods and components with traditional tastes is a result of the global popularity of different cuisines. Within this rich culinary landscape, cheese powder has become a common ingredient, connecting various kitchens and cultures seamlessly.

As people's food preferences become more diverse and cultural exchange becomes easier, chefs and home cooks are increasingly combining flavors and techniques from different traditions. Cheese powder has emerged as a versatile seasoning that enhances the taste profiles of both traditional and innovative dishes, making it a valuable addition to the world of gastronomy. Cheese powder has become an emblem of culinary versatility and experimentation, spanning from the bustling streets of Asia to the quaint villages of Europe and the vibrant markets of the Americas. Its ubiquity has made it a staple ingredient in many dishes, and it continues to inspire chefs and food enthusiasts alike to push the boundaries of traditional cuisine. Its adaptability and versatility make it a valuable addition to any kitchen, offering a range of flavors and textures that can be incorporated into a variety of dishes, from savory to sweet. As such, it remains an important ingredient in the culinary industry, celebrated for its ability to enhance and elevate dishes across the globe. In traditional cuisines, cheese powder has breathed new life into time-honored recipes. Its ability to impart a concentrated burst of flavor allows chefs to recreate distant delicacies that might otherwise be challenging to source or reproduce authentically. In Asian cuisine, cheese powder might infuse a modern twist into classic noodle dishes, compellingly contrasting traditional ingredients. Similarly, Mediterranean fare could elevate a rustic dish with a touch of creamy richness, seamlessly blending cultures and flavors.

This growing demand for cheese powder on a global scale is attributed to chefs and home cooks continuing to explore the vast possibilities of culinary fusion. It has earned its place as a symbol of the modern culinary landscape, an ingredient that surpasses geographical constraints.

The ascendancy of artisanal cheese within the cheese powder market has been a remarkable phenomenon, driven by an increasing consumer yearning for authenticity, quality, and unique flavors. As mass-produced and standardized products dominated the market, a palpable desire emerged among discerning consumers for a more elevated and personalized culinary experience. Artisanal cheese, with its emphasis on traditional craftsmanship, locally sourced ingredients, and diverse aging techniques, answered this call to cheese enthusiasts worldwide. The rise of artisanal cheese in the cheese powder market has been facilitated by a renewed appreciation for regional flavors and heritage. As consumers seek to connect with their food more meaningfully, artisanal cheese offers a direct link to local culinary traditions and a sense of place. This appeal is not limited to a single region but extends globally, with enthusiasts worldwide eager to explore the nuances of cheese varieties.

Restraints: Quality and authenticity

Creating an authentic cheese flavor and ensuring consistent product quality in cheese powder is indeed a complex task that presents several challenges for food manufacturers. Cheese powder is a convenient and versatile ingredient used in various food products, such as snacks, sauces, and seasonings. The foundation of any cheese powder is the cheese itself. The specific type and quality of cheese used as the base ingredient greatly influence the final flavor, aroma, and texture of the powder. Different cheeses, such as cheddar, parmesan, or blue cheese, possess distinct and complex flavor profiles. Capturing and translating these nuances accurately into a powdered form is a complex task, and even slight variations in the source or type of cheese can lead to noticeable differences in the end product. Achieving consistency in flavor across batches becomes challenging, especially when using different sources or types of cheese.

The transformation of cheese into powder involves several processing steps, including drying and milling. These steps are essential to ensure the product’s stability and shelf life. However, if not executed properly, they can adversely affect the final flavor and texture. Over-processing, inadequate drying, or incorrect processing conditions can cause the degradation of delicate flavor compounds present in cheese, resulting in an inauthentic or muted taste. Achieving the right balance between processing efficiency and flavor preservation is crucial. The cheese flavor is a complex interplay of volatile compounds that can be sensitive to external factors such as temperature, humidity, and light. Over time, exposure to these environmental conditions can lead to the breakdown and degradation of these volatile compounds. This can result in flavor loss or changes that deviate from the desired authentic cheese profile. Manufacturers must carefully formulate their products to mitigate the impact of these factors and select appropriate packaging materials to maintain flavor stability throughout the product’s shelf life.

Opportunities: Rapidly growing market of processed and packaged food in developing countries

With favorably changing economic conditions and developments, there is an increase in the disposable income of consumers. This rise in disposable income has resulted in higher purchasing power of consumers, which in turn has increased the household expenditure, wherein the consumers are increasingly spending on processed & packaged foods. Cheese powder is extensively used in packaged and processed food as a flavorant. The increasing disposable income in emerging economies can be analyzed by the growth in GDP (PPP) of leading countries in 2015.

The rise in urbanization in developing countries is expected to create opportunities for the global cheese powder market. Urbanization often leads to changes in lifestyle and dietary habits. With fast-paced urban lives, people are seeking convenient and time-saving food options that do not compromise on taste and nutritional value. Cheese powder, known for its long shelf life and versatility, aligns perfectly with this need. It can be easily incorporated into a variety of dishes, ranging from instant pasta meals to ready-to-eat snacks, catering to the on-the-go urban lifestyle. According to the FAO, rapid economic development, income growth, and urbanization are leading to changes in dietary patterns of people in Asia. A shift is observed from staple food towards including processed & packaged food products in their food intake. Moreover, growth in retail channels such as supermarkets and hypermarkets in urban areas is expected to increase the availability of processed & packaged food. With the rising demand for packaged foods such as snacks, bakery & confectionery products, and ready to eat meals, the demand for cheese powder is likely to grow in the future.

Furthermore, urbanization tends to foster exposure to diverse cuisines and flavors due to increased cultural exchange and international migration. Cheese powder, with its ability to enhance the taste profile of a wide range of dishes, can contribute to the creation of fusion foods that appeal to cosmopolitan urban palates. This opens up avenues for innovative culinary creations and cross-cultural gastronomic experiences, further driving the demand for cheese powder.

Challenges: Allergen and dietary restrictions

Many cheese powders contain allergens, such as milk, which can pose challenges for individuals with allergies or dietary restrictions. Meeting the demands of consumers seeking allergen-free or plant-based options while maintaining the desired taste and texture can be complex. As stated in the report “Lactose Intolerance by Country - 2023” by the World Population Review, lactose intolerance tends to be more prevalent among individuals in the United States with familial or ancestral ties to regions where lactose malabsorption is more frequent. Specifically, those with African American, American Indian, Asian American, or Hispanic/Latino heritage are more prone to lactose malabsorption, according to the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK).

Lactose intolerance is most notably widespread in Asian nations, particularly in East Asian countries, where a substantial 70-100% of the population exhibits lactose intolerance. Conversely, it is notably less prevalent in Northern and Central European regions, where only around 5% of the populace experiences lactose intolerance. Given the higher likelihood of lactose intolerance among specific ethnic groups in the US, manufacturers may tailor their marketing efforts and product formulations to cater to these segments. This could involve creating lactose-free or dairy-free cheese powder options to accommodate those more susceptible to lactose malabsorption.

Based on application, Sauces, dressings, dips, and condiments products is estimated to account for the largest market share of the cheese powder market.

Sauces, dressings, dips, and condiments are commonly used to enhance the flavor of various dishes. When combined with cheese powder, they can create a rich and savory taste profile that appeals to consumers. The combination of different flavors can lead to unique culinary experiences, driving demand for cheese powder in both the consumer and food service sectors. The food service sector, including restaurants and cafes, often uses cheese powder as a cost-effective and flavor-boosting ingredient. By incorporating cheese powder into sauces, dressings, and dips, foodservice establishments can offer unique menu items that stand out to customers.

Based on origin, processed cheese is anticipated to dominate the market.

Processed cheese powder products are favored for their convenience and longer shelf life compared to traditional cheeses. They are easy to store, have a longer shelf life, and require minimal preparation. This convenience factor appeals to busy consumers seeking quick and easy meal solutions. Processed cheese powder can be stored for longer periods without the risk of spoilage or mold growth. This makes them ideal for food manufacturers and consumers who require longer-lasting dairy products.

Cheddar cheese of the cheese powder market by type segment is projected to witness the largest share during the forecast period.

Cheddar cheese has been a popular and versatile cheese variety, enjoyed for its sharp and tangy flavor. It is widely used in various culinary applications, including snacks, sauces, dips, and ready-to-eat meals. The global snack industry has been expanding, driven by changing consumer preferences, on-the-go snacking, and the introduction of innovative snack products. Cheddar cheese powder finds application in the seasoning of various snack items, aligning with the growth of the snack market.

The North America market is projected to contribute the largest share for the cheese powder market.

North America, especially the United States, has been a significant consumer of processed and convenience foods, which often include cheese-flavored snacks and products. This has contributed to the demand for cheese powder as an ingredient. Consumers have shown a growing preference for convenient, ready-to-eat, and portable snack options. Cheese powder is often used to add flavor to such products, aligning with this trend. Cheese powder is a versatile ingredient that provides a concentrated cheese flavor. Its use in various food items helps enhance taste profiles and can make products more appealing to consumers.

Key Market Players

Land O'Lakes, Inc. (US), Kerry Group Plc (Ireland), Fonterra Co-operative Group Limited (New Zealand), Archer Daniels Midland (US), and Lactosan A/S (Denmark) are among the key players in the global cheese powder market. These players in this market are focusing on increasing their presence through partnership and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe.

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Scope of the Report

Report Scope:

Cheese powder Market:

By Type

• Cheddar
• Mozzarella
• Parmesan
• American Cheese
• Blue Cheese
• Other Types

By Origin

• Natural
• Processed

By Application

• Bakery & Confectionery products
• Sweet & Savory snacks
• Sauces, dressings, dips & condiments
• Ready Meals
• Other Applications

By Milk Source (Qualitative)

• Cow milk
• Buffalo milk
• Sheep milk
• Goat milk

By Region

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Recent Developments

• In September 2022, Kerry Group plc (Ireland) significantly bolstered its position in the cheese powder market by acquiring The Kraft Heinz Company's powdered cheese business and related assets. This strategic move not only elevates Kerry's scale and manufacturing capacity but also expands its customer base in the vital snacking category. Through this acquisition, Kerry gains access to Kraft Heinz's B2B powdered cheese business, reinforcing its foothold in the cheese powder market. Moreover, with the acquisition, Kerry further extends its presence and influence in emerging markets, solidifying its position as a prominent player in the cheese powder industry.
• In March 2023, Kerry Group plc (Ireland) has inaugurated the Southern Europe Innovation Centre in Barcelona, Spain, showcasing their commitment to expanding their presence in the region, catering to customers in Spain, Portugal, Italy, and France. By leveraging the facility's cutting-edge labs and technology expertise, Kerry can accelerate the development of novel and tailored cheese powder solutions for the region. This enhanced product portfolio and the ability to cater to diverse consumer tastes are likely to position Kerry as a dominant player in the South European cheese powder market.
• In October 2022, Fonterra Co-operative Group Limited (New Zealand) has embarked on a collaborative initiative to enhance its US Foodservice business by partnering with Land O'Lakes, Inc. (US), a prominent dairy cooperative in the United States. This strategic sales and marketing agreement is aimed at unlocking new avenues for Fonterra's Foodservice offerings within the expansive US market. Considering the implications for the cheese powder market, while the immediate scope of this partnership centers on cooking creams, cream cheese, and potentially other categories, the broader collaboration with Land O’Lakes could influence Fonterra's overall presence and capabilities in the US market. This enhanced market access and distribution network could indirectly impact the availability and distribution of various dairy products, including cheese powder, as Fonterra further establishes its foothold in the competitive US Foodservice landscape.

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