Market Research Future (MRFR) has published on the “Global Dairy-Free Cream Cheese Market”.
Global Dairy-Free Cream Cheese market
The demand for Organic dairy-free cheese has been increasing rapidly across the globe in the last few years, driving market growth. The high prevalence of lactose intolerance across the global population is mainly driving the growth of dairy-free products. Moreover, growing consumer preference for a vegan diet is contributing to the growth of the global dairy-free cream cheese market. Continuous product launches by manufacturers in this area increase product availability, creating an opportunistic market. However, poor sensory properties and allergen reactions associated with certain plant protein sources act as a restraint for market growth.
As consumer preferences are shifting, and the developing trends in the food and beverage sector are growing the demand for Vegan cheese alternatives across the globe. The growing cases of Cream cheese substitute intolerance and other food-related allergies among children and adults have changed the preferences of consumers in recent years. According to the data provided by the Food Intolerance Network, in 2019, around 70% of the population of the world suffered from lactose intolerance.
According to the MRFR analysis, the global dairy-free cream cheese market size is projected to reach USD 300.40 million by 2032 at a CAGR of 7.5%.
Lactose intolerance is the inability to digest a milk sugar component known as lactose, which causes several gastrointestinal systems such as bloating, flatulence, cramps, and diarrhoea in some individuals. Moreover, it results from a shortage of lactase enzymes, which break down lactose into simpler forms, glucose, and galactose. As per the US Department of Health & Human Services, approximately 65% of the US population has difficulty digesting lactose after infancy. The rising prevalence of lactose intolerance has led US consumers to shift from dairy-based products to dairy-free products such as non-dairy cream cheese. Additionally, the demand for soy and wheat proteins is growing rapidly due to an increase in the number of individuals who are adopting a vegetarian lifestyle and opting for plant-based rather than animal-based ingredients. This, in turn, is boosting the demand for non-dairy cream cheese.
The key players are investing more in research and development to launch new products with innovations and few players have launched food and beverages products that contain probiotics, prebiotics, and enzymes. The European Commission and EPA have formulated protective regulations to expand the development as well as consumption of naturally obtained ingredients due to the rising concerns about reducing Greenhouse Gas (GHG) emissions.
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COVID-19 Impact on Dairy-free Cream Cheese Market
The COVID-19 pandemic has affected every industry of society, including individuals and businesses. The outbreak has caused disruption and volatility in the capital country markets and authored an economic slowdown during 2020. The demand for essential commodities such as groceries has been increasing in multiples. A growing trend had been noticed for plant-based eating among the consumers in 2019 which got a push in the pandemic situation. Due to the outbreak of coronavirus in China, people have begun to think more about how their food is sourced, made & finally delivered. This brought a transition in the eating habits of the consumers as more and more people are getting involved in the consumption of plant-based and vegan food. The outbreak of COVID-19 in the country created a panic situation among consumers with temporary closures of retail stores in an attempt to slow the spread of the virus. This led to panic purchasing among the consumers as they got involved in the pantry stockpiling of shelf-stable foods. Stockpiling activity among consumers for essential groceries brought a sudden hike in the sales of non-dairy cream cheese. Also, as a result of stockpiling, retailers are running out of stock and the grocery shelves for popular items sit empty. This erodes the consumer brand preference which is putting forward the products of small regional players in the market consumption.
The market is comparatively exploding with the existence of various key players. These market players are trying to acquire higher market share by implementing strategies, such as collaborations, partnerships, joint ventures, investments, and acquisitions & mergers. The prevalence of plant-based cream cheese concerned problems among the population led the suppliers to invest more in research & development activities. The development of inventive non-dairy cream cheese by the top key players will have a positive impact on the market in the upcoming years.
The key players operating in the global dairy-free cream cheese market include Kite Hill, Tofutti Brands, Inc., Miyoko's Creamery, Vevan, Violife Foods, Follow Your Heart, Simply V., Wild Creamery, So Delicious Dairy Free, Daiya Food Inc., and Plant Perks dominate the market due to brand reputation, product differentiation, financial stability, and strong distribution network. The players are focused on investing more in research and development along with strategic growth advantages such as collaborations, acquisitions, and product launches to strengthen their market growth and position and capture a large consumer base.
As well as the growth of players is based on government support, market conditions, and industry development. Besides, the market is highly fragmented, with the presence of a large number of manufacturers operating globally. Additionally, the presence of private-label companies is presenting stiff competition to tier-1 and tier-2 manufacturers with continued investment in product launches and capacity expansion being undertaken by manufacturers to cater to the rising demand for dietary supplements, especially from the geriatric population in both of these countries.
By Flavor Type
- Flavored: Flavored non-dairy cream cheese refers to the products in which additional flavours have been added to expand the product portfolio and offer customers different variants of the same product. The flavour is one of the essential attributes of a product that has a high influence on consumer buying behaviour as it helps in enhancing the eating experience of the consumers.
- Plain/Unflavored: Plain non-dairy cream cheese refers to products in which no additional flavours have been added. Plain non-dairy cream cheese retains only the natural taste and flavour of the necessary raw materials used to make it such as the milk source. They often taste off due to the plant proteins present in them, resulting in a lower market share.
- Soy: Soy is used for producing soy milk, plant-based milk, and a stable emulsion of water, oil, and protein. The segmental market is still at a nascent stage of development and is gaining traction as soy is a non-dairy milk alternative used to make non-dairy cream cheese. It is free from cholesterol and lactose and has a low saturated fat content. Such factors are driving the segment growth.
- Almond: Almond milk is used to make dairy-free cream cheese. Tree nuts are a very rich source of fibre, protein, and essential fats that are required for a healthy body. Almonds are a rich source of non-dairy calcium and are gaining importance in a non-dairy diet.
- Coconut: Coconut milk or cream is also used to make dairy-free cream cheese. The majority of the market players prefer coconut milk over cream as coconut milk provides better consistency.
- Others: The other segment mainly includes cashew, rice, and blends. These sources hold a very small share of the non-dairy cream cheese market and are thus considered a cumulative segment. Cashew is a prominent type of nut preferred by the majority of consumers.
- Organic: Organic products are perceived to be healthier than conventional products because they are free from synthetic fertilizers, pesticides, and GMOs. In addition, organic products are also perceived to be more environmentally friendly as they promote sustainable farming practices that do not harm the environment.
- Conventional: Conventional products are developed from conventional raw materials, using conventional farming practices. Conventional products are widely available in the market and can be easily sourced by manufacturers. In addition, conventional products can be produced in large quantities to meet the demand of manufacturers.
- Gen X: Gen X comprises the population that is born between 1965 and 1981, one of the largest consumer groups that on average has more household income. Owing to the higher purchasing power of the consumer group, the trend of premiumization in the dairy-free cream cheese industry is expected to boost the growth of the segment during the forecast period.
- Gen Z: Gen Z, the youngest consumer group consisting of individuals born between 1997 and 2012, also includes a proportion of the legally permitted population that can consume alcoholic drinks including beer in various parts of the world. Moreover, the preference for dairy-free cream cheese has been gaining significant prominence and brands are also increasingly taking several initiatives to capitalize on the trend.
- Millennials: Millennials are those population that are born between 1981 and 1996, one of the largest consumer groups that are engaged in the workforce compared to other groups. The consumer group presently in their early 40s and 30s is becoming more health and label conscious, this has led to product innovation by various players in the dairy-free cream cheese market to launch products that are low-calorie, natural, and plant-based.
- Baby Boomers: Boomers, the population born between 1946 to 1964, presently constitute the senior citizen category of the population. They account for the second largest population next to millennials in the majority of countries across the world.
By End User
- Food Processing: Food Processing is the method of converting food products into a form that can be consumed by end users. It covers the extraction of raw materials into the end product or food via various physical and chemical methods. Serval activities are covered in this process those are liquefaction, canning, mincing, cooking, pickling, macerating, and emulsification.
- Food Service: Food Service protects a broad number of channels are restaurants, hotels, cafes, hospitals, schools, and many others. The food service sector covers the businesses, institutions, and organizations that get ready meals outside the home. It covers grocery stores, restaurants, school and hospital cafeterias, catering operations, and many other formats.
- Food Retail: A food retailer is a place of business where consumers can purchase food and take it with them to be consumed off-premises. Retail food is generally food that is obtained from a business transaction with an organization that is not a restaurant.
By Distribution Channel
- Supermarkets & Hypermarkets: Supermarkets and hypermarkets are the most popular and widely used distribution channels for lactose-free cream cheese The section consists of shops, stores, and other establishments that sell a variety of goods directly to consumers. Supermarkets & hypermarkets account for the majority of sales in the dairy-free cream cheese market. These retail outlets offer a wide range of products and have a large customer base.
- Specialty Stores: Specialty stores, known for their focus on high-quality and unique products, cater to consumers with specific tastes and preferences. The demand for dairy-free cream cheese in the specialty stores segment reflects the increasing interest in culinary exploration and the desire for exceptional dairy products to enhance dining experiences.
- Convenience Stores: Convenience stores have become increasingly popular as go-to destinations for quick purchases and on-the-go snacks. They cater to consumers looking for convenient and portable dairy-free cream cheese products for immediate consumption. As more consumers rely on convenience stores for their daily needs, the demand for dairy-free cream cheese in this segment is expected to continue its upward trajectory.
- Online: Some companies sell their products online which is one of the distribution channels that accounts for around 8-10% of the total sales as of 2021. It also includes various types of online sales like B2B, B2C, C2B, C2C, B2G, C2G, G2B, and G2C. Online sales channel usually includes e-commerce websites, and traditional marketplaces such as Amazon, Walmart, Etsy, and many more.
- North America: The North American region includes major markets such as the US, Canada, and Mexico. The US and Canada have the highest per capita income. The standard of living in North America is high and is considered a major contributor to creating demand for the dairy-free cream cheese
- Europe: Europe includes the UK, Germany, France, Italy, Spain, and Rest of the Europe are included in the analysis of the European market. Europe continues to hold a significant share in the global dairy-free cream cheese market, owing to the presence of major players in the region coupled with the various strategies adopted by them to strengthen its foothold in the market.
- Asia-Pacific: Asia-Pacific is the most populated region in the world, consisting of some of the major economies, including China, India, and Japan are growing rapidly. The various expansion policies that have been adopted by major players in the region are expected to drive the demand for dairy-free cream cheese in the upcoming years.
- Rest of the World: The rest of the World including the region of South America, the Middle East, and Africa, will witness moderate growth in the energy drinks market in the coming years. Furthermore, the major company operating in South Africa is going under various acquisitions which are resulting in growth in the dairy-free cream cheese market.