Geographic reference: World
Year: 2019 and 2027
Market size: $1.01 billion and $2.66 billion, respectively

Today’s market size shows the global revenues for vegan cheese in 2019 and projected for 2027. The global vegan cheese market is a very small fraction of the $69.7 billion dairy cheese market, however, due to the increasing popularity of vegan cheese revenues are expected to more than double by 2027, growing at a compound annual growth rate (CAGR) of 12.8% from 2020 to 2027. Demand is increasing for all plant-based foods including vegan cheese. Veganism is more common among consumers, either as a health choice or in response to concern for animal welfare and the environment. But vegan cheese is not just in demand among vegans. Flexitarians seek out plant-based alternatives in order to reduce the amount of meat and dairy in their diets. And, according to the U.S. National Institutes of Health, 65% of the global population has trouble digesting lactose, the sugar found in dairy products. Substituting vegan cheese for dairy cheese in many recipes allows this population the ability to enjoy foods they might not be able to eat otherwise.

Vegan cheese made with cashews held the largest share of the market at 35%. Products made with soy are expected to gain market share through at least 2027. Soy is a low-cost dairy alternative and is low in cholesterol with other health benefits. By type, mozzarella held the highest share at 30%, followed by Cheddar, cream cheese, and parmesan. Vegan mozzarella is in high demand in western countries where Italian food, including pizza, are popular. Ricotta-style vegan cheese is expected to see the fastest growth as more popular recipes incorporate this ingredient in appetizers, pizza toppings, and desserts.

With the increasing consumer demand for plant-based cheese, these products are no longer relegated to health food stores and specialty grocers. Increasingly supermarkets and convenience stores are stocking these products. More than 50% of vegan cheese is consumed in the household. Growth in this segment is due to higher availability and a willingness by consumers to pay for premium products. The foodservice segment of the market is expected to see the fastest growth as more restaurants, fast-food chains, and casual-dining establishments add plant-based offerings to their menus. The growing popularity of vegan meal kit services will also contribute to the growth in vegan cheese sales. Plant-based meal kits by Allplants Ltd. have been so popular in the United Kingdom, the company plans to expand to other parts of Europe and North America. Europe accounted for a 40% share of global vegan cheese revenues, the highest in the world, with the United Kingdom and Germany being the major markets in the region. The Asia-Pacific region is expected to experience the fastest CAGR, 14.3%, from 2020 to 2027.

In the United States, brands such as Daiya, Follow Your Heart, Kite Hill, Violife, and Go Veggie, whose companies exclusively create vegan and vegetarian food items, have seen top 10 sales in 2020. Of the top 5 processed/imitation shredded cheese brands, 4 were vegan/vegetarian brands. Kraft Velveeta claimed the top spot with sales of $9.9 million, followed by Daiya ($8.8 million), Follow Your Heart ($2.5 million), Violife ($1.3 million), and Go Veggie ($1.1 million). In the processed/imitation sliced cheese category Daiya and Follow Your Heart ranked 8 and 10 respectively. In the soft cream cheese category, Kite Hill was the third-ranked brand (excl. Private label) with sales of $2.5 million, above Crystal Farms and Kraft. Tofutti and Daiya ranked sixth and seventh, respectively.¹

To capitalize on the growing popularity of plant-based foods, some established dairy firms are including plant-based dairy items in their portfolios, either by acquiring companies with plant-based brands or developing products in house. In 2018, Miyoko’s joined Nestlé-backed accelerator Terra and has been working with the company to craft plant-based cheese and butter by combining proprietary technology and age-old creamery methods. In September 2019 Kraft Heinz provided seed funding for San Francisco-based animal-free cheese company New Culture. Before that, in September 2017, J Sainsbury PLC created vegan cheese products under its private label brand to sell in its Sainsbury’s supermarkets in the United Kingdom. As Dominic Borrelli, President of Plant-Based Food and Beverages and Premium Dairy at Danone North America states: “Overall, consumers are recognizing dairy-free doesn’t only need to be for those with allergens or those practicing a dairy-free lifestyle but can simply be enjoyed because it’s delicious!”

¹ Ranking and sales data for processed/imitation cheese are for the 12 weeks ended March 22, 2020. Ranking and sales data for soft cream cheese are for the 12 weeks ended April 19, 2020. All data are originally from IRI, a market research firm, and can be found in Frozen & Refrigerated Buyer. See source note for more information.

Sources: “Vegan Cheese Market Size, Share & Trends Analysis Report by Product (Mozzarella, Cheddar, Parmesan, Ricotta, Cream), by Source (Cashew, Soy), by End-use (Household, Foodservice), by Region, and Segment Forecasts, 2020 – 2027,” Grand View Research Report Summary, September 2020 available online here; “Vegan Cheese Market Size Worth $2.66 Billion by 2027 | CAGR: 12.8%: Grand View Research, Inc.,” CISION PR Newswire, September 15, 2020 available online here; “Market Value of Cheese Worldwide from 2019 to 2025,” Statista.com available online here; Frozen & Refrigerated Buyer, May 2020, pp. 10-12 available online here; Frozen & Refrigerated Buyer, June 2020, p. 12 available online here; Brian Kateman, “Plant-Based Meal Kits and Delivery Services are on the Rise,” Forbes, December 11, 2019 available online here; Andy Coyne, “Plant-based Priorities — Dairy Companies with a Stake in Dairy-free,” just-food, August 4, 2020 available online here; Andy Coyne, “Nestlé-backed U.S. Accelerator Terra Reveals Latest Cohort,” just-food, October 4, 2018 available online here; “Danone: ‘The Emphasis on Plant-Based Nutrition Will Accelerate Over Time & We Are Here to Help Meet Those Needs,'” Vegconomist, May 6, 2020 available online here.
Image source: Amber Engle, “Rainbow Veggie Pizza Slice,” Unsplash, July 25, 2020 available online here.