The global processed cheeses market is anticipated to hit a valuation of US$ 24 billion valuation by the end of the forecast period from 2020 to 2029. The coronavirus pandemic is largely expected to adversely affect processed cheese sales. The closure of food services in many countries and the sudden drop in demand from commercial end-users are key factors hindering short term market prospects.

“Extensive branding efforts coupled with affordability are major factors that contribute to the sales of processed cheese. In addition, a wide range of flavor options are also boosting adoption among commercial users in the long term,” says the FACT.MR report.

Processed Cheese Market- Key Takeaways

  • Private label cheeses are witnessing high adoption owing to low costs and ease of use in multiple cuisines.
  • Fast food applications contribute to substantial revenue growth, particularly owing to higher demand in emerging economies.
  • Europe is a major market for processed cheeses owing to the extensive use of cheese in most regional cuisines.

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Processed Cheese Market- Driving Factors

  • Attractive flavor options and versatility of use in multiple cuisines is a key factor driving adoption of processed cheeses.
  • Low price point coupled with the growth of the commercial fast food culture supports sales.

Processed Cheese Market- Major Restraints

  • Growing competition from gourmet and artisanal cheese is a major problem for processed cheese manufacturers.
  • Strict government regulations against additives such as sodium in foods is holding back market prospects.

COVID-19 Impact on Processed Cheese Market

The lockdown measures imposed by governments during the coronavirus pandemic have resulted in a significant dip in demand for processed cheese. The temporary closure of food service businesses during this period has had a major impact on the market. However, household consumption of processed cheese has witnessed growth during the lock down period, which provides manufacturers opportunities to partially recoup losses incurred during the outbreak. Recovery is likely to be gradual with lockdown restrictions being eased towards 2021.

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Competitive Landscape

Lactalis, Modelez International, Le Groupe Bel, and Arla Foods are some of the leading processed cheeses manufacturers in the fragmented global market.

Players in the processed cheeses market are investing in the expansion of production capabilities through acquisitions and expansions. This enables them to keep up with rising demand and geographic penetration.

For example, St. Paul Group has entered a strategic agreement to acquire the processed and grated cheese business from Givaudan. Similarly, Lactalis Group has agreed to acquire the natural cheese division in Canada from Kraft Heinz for C$1.62 billion. Further, Fonterra Cooperative has announced its intentions to bolster production inn Australia following growth in demand.

About the Report

This study offers readers a comprehensive market forecast of the processed cheeses market. Global, regional and country-level analysis of the top industry trends impacting the processed cheeses market is covered in this FACT.MR study. The report offers insights on the processed cheeses market on the basis of type (blue cheese, brick cheese, camembert cheese, cheddar cheese, cottage cheese, cream cheese, mozzarella cheese, romano cheese, swiss cheese, and others), form (block, slice, spread, and spray), milk source (cattle milk, goat milk, and sheep milk), end use (household, HoReCa, F&B Processors, snack manufacturers, bakery & confectionery, sauces & condiments, ready meal, packaged food, and others) and distribution (direct sales, hypermarket/supermarket, club stores, discounters, grocery retailers, convenience stores, and online stores), across seven regions (North America, Latin America, Europe, East Asia, South Asia, Oceania, and MEA).

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