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A16192 | Pages: 501 | Charts: 83 | Tables: 644 |
Cheese Sauce Market Research, 2035
The global cheese sauce market was valued at $5.5 billion in 2023, and is projected to reach $9.1 billion by 2035, growing at a CAGR of 4.4% from 2024 to 2035. Cheese sauce is a creamy, flavorful sauce made primarily from cheese, butter, milk, and flour. It is typically thickened by cooking the ingredients together to achieve smooth consistency. Popular dishes such as macaroni and cheese, nachos, and as a topping for vegetables, cheese sauce imparts a rich, cheesy flavor. It can also be customized with various spices, herbs, or different types of cheese. The expanding food service industry significantly drives the increasing demand for cheese sauce, as restaurants, fast-food chains, and casual dining establishments continually incorporate cheese sauce into a variety of dishes.
Market Dynamics
The change in consumer preferences plays an important part in driving cheese sauce market demand. There has been a significant rise toward convenient and ready-to-eat food products influencing the cheese sauce industry's future. As customers prefer simple culinary solutions, the versatility of cheese sauces in a variety of food and snacks makes them a preferred option. Convenience is especially important in today's on-the-go lifestyles, when time limitations and a craving for quick meals have become essential components. For instance, the study by the International Food Information Council (2022) revealed that 50-60% of consumers prioritize convenience in their food choices, with many seeking ready-to-eat options like cheese sauces for ease and time-saving meal preparation. Moreover, cheese sauces play a key role in meeting the growing demand for quick, easy-to-prepare food that fits today‐™s busy lifestyles. The convenience and versatility make it a popular choice, aligning with evolving consumer preferences and on-the-go culinary trends, which drives cheese sauce market growth.
People's lifestyles are changing owing to increased living expenses, inflation rates and increase in events at home. Nowadays, it's trendy to entertain and eat at home instead of going out. For instance, as per the U.S. Department of Agriculture (2022) findings, food prices increased by 9.9%, since 1979. Food-at-home prices increased by 11.4%, while food-away-from-home prices increased by 7.7%. This change in prices is driving the demand for cheese sauce in-home consumption. Moreover, the increase in at-home snack occasions is a major factor driving the growth in various cheese categories, such as blocks, sauces, recipes, and specialized types. The growing popularity of making tasty dishes at home has made cheese sauces more versatile. Whether used as a dip, topping, or main part of a meal, cheese sauces enhance the home cooking experience, meeting the general preference for at-home indulgence and contributing to the growth of cheese sauce market.
Increasing number of individuals, particularly children, are interested in fast food items such as pizza, burgers, and pasta. Like adults, 36% of consumers aged between 2 and 19 years consume fast food daily. Although younger generations have highlighted healthy eating, many children and young adults continue to consume a majority of their daily calories from fast food. The popularity of fast food is further evidenced by the global rise of quick-service restaurants. McDonald's, for instance, sells its iconic menu in more than 119 markets worldwide, with more than 39,000 locations. This widespread presence highlights the growing demand for convenient and accessible dining options. Moreover, a fast-food meal accounts for a substantial portion of daily calorie intake, making up 37% on average. It also contributes significantly to carb intake 42.6%, daily fat 33.6%, and daily protein 15.4%. These statistics highlight the significant role fast food plays in shaping dietary habits and nutritional profiles. To serve this increasing demand, many fast-food establishments have incorporated cheese sauces into their menu items. Adding cheese sauces not only enhances the taste and appeal of fast food but also aligns with the changing preferences of consumers, particularly younger generations.
However, The volatility in cheese prices stands as a constraint in the cheese sauce market. The unpredictability of cheese costs introduces challenges for producers and manufacturers, thus impacting overall production expenses. For instance, as per trading economics, cheese prices have increased by 47.37% since the beginning of 2024. Such fluctuations in cheese prices can result from various factors, including changes in supply and demand dynamics, weather conditions affecting dairy production, and market uncertainties. Such unpredictability is expected to hamper the cheese sauce industry by influencing production costs and thereby affecting pricing strategies. Companies operating in this market need to navigate the challenges posed by the variability in cheese prices to maintain profitability and competitive pricing in the face of market dynamics.
The health reasons behind not eating a lot of cheese sauce include weight gain, cardiac problems, and stomach issues. Consuming excessive cheese and fatty dairy products, which are prevalent in cheese sauces, can result in health complications such as obesity, hypercholesterolemia, and stomach disorders. As health concerns grow, there is a possibility that fewer people will choose to eat cheese sauces. Increased awareness of health risks associated with cheese sauces can lead to regulations or public health initiatives that further impact consumer interest in these products. Therefore, the issues associated with weight and heart health are important causes for why individuals may not consume a lot of cheese sauce, which impacts the quantity and level of popularity of the sauce.
Segmental Overview
The cheese sauce market analysis is segmented on the basis of cheese type, source, end user, distribution channel, and region. By cheese type, the market is divided into cheddar, mozzarella, parmesan, American cheese, blue cheese, provolone, gouda, Montero jack, and others. By source, the market is bifurcated into organic and conventional. By end user, the cheese sauce market is classified into households and foodservice. By distribution channel, the market is categorized into convenience stores, hypermarkets/supermarkets, specialty stores, direct, online channels, and others. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Russia, Italy, Spain, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, and the rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, UAE, Argentina and rest of LAMEA).
By Type
[CHEESETYPEGRAPH]
By type, the cheese sauce market is segmented into Cheddar, Mozzarella, Parmesan, American Cheese, Blue Cheese, Provolone, Gouda, Montero Jack, and others. The Cheddar accounted for a major share of the cheese sauce market size in 2023 and is expected to grow at a significant CAGR during the cheese sauce market forecast period. Cheddar holds a prominent position in the snack and dairy industry, being one of the most frequently used cheese sauces. A notable trend in the market is the rising consumer demand for cheddar cheese sauce that offer healthier options, such as lower fat, sodium, or lactose content, as well as those catering to specific dietary needs like gluten-free or vegan preferences. This shift in consumer preferences reflects a broader trend towards nutrient-rich and protein-packed foods that promise healthier substitutes for everyday consumables.
By Source
[SOURCEGRAPH]
By source, the market is segmented into organic and conventional. The conventional segment accounted for a major share of the market in 2023 and is expected to grow at a significant CAGR during the forecast period. A prominent trend in the conventional segment is the rise of functional food and beverage options‐”products enriched with ingredients that offer health benefits. Contemporary consumers are progressively pursuing healthy food alternatives that allow them to retain their favorite meals without significant alterations. This trend is propelled by the growing demand for convenience food, the popularity of cheese-based snacks and dishes, the expansion of the fast-food industry, and the increasing preference for ready-to-use sauces in both households and food service establishments.
By End User
[ENDUSERGRAPH]
By end user, the market is segmented into households and foodservice. The foodservice accounted for a major share of the cheese sauce market size in 2023 and is expected to grow at a significant CAGR during the forecast period. The foodservice segment is experiencing notable growth driven by several key trends and opportunities. Rapid urbanization and changing consumer lifestyles are increasing the demand for convenience food, particularly in busy urban areas where quick-service restaurants (QSRs) and delivery services thrive. The integration of technology, such as online ordering platforms and mobile apps, enhances accessibility and customer engagement, further propelling market growth.
By Distribution Channel
[DISTRIBUTIONCHANNELGRAPH]
By distribution channel, the market is segmented into convenience stores, hypermarkets/supermarkets, specialty stores, direct, online channels and others. The direct channel accounted for a major share of the market in 2023 and is expected to grow at a significant CAGR during the forecast period. Direct distribution channel is experiencing notable trends, growth factors, and opportunities. With the increasing dominance of e-commerce, producers are leveraging online platforms to directly reach consumers, offering convenience and a wider market reach. A key trend involves customization and specialty products, as consumers seek unique and premium cheese sauce experiences.
By Region
[REGIONGRAPH]
By region, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA. The Europe region accounted for a major share of the market in 2023 and is expected to grow at a significant CAGR during the forecast period. In North America, the cheese sauce market share continues to grow that shape consumer preferences and global demand. Leading brands such as Danone maintain their dominance in this region. One prominent trend is the growing demand for premium and specialty cheese sauce, including organic milk, reflecting consumers' increasing emphasis on quality and health consciousness. In addition, flavored, and probiotic-rich options, are experiencing sustained popularity, driven by their perceived health benefits.
Competition Analysis
The major players operating in the cheese sauce market focus on key market strategies, such as mergers, product launches, acquisitions, collaborations, and partnerships. They have also been focusing on strengthening their market reach to maintain their reputation in the ever-competitive market. Some of the key players in the market include Campbell Soup Company, Conagra Brands, Inc., Kerry Group Plc., Unilever Plc., Gehl Foods, LLC., AFP Advanced Food Products, LLC., Tatua, Nestle S.A., The Kraft Heinz Company, and TreeHouse Foods, Inc.
Recent Developments in the Market
In June 2024, Conagra Brands, Inc, unveiled an exciting line-up of innovation that brings more than 50 new items to grocery shelves.
In November 2023, Kraft Heinz launched plant-based Kraft Mac & Cheese as part of its joint venture with NotCo. Kraft NotMac&Cheese sauce contains plant-based ingredients such as fava bean protein and coconut oil powder, according to The Kraft Heinz Not Company.
In August 2023, Kerry Group acquired the B2B powdered cheese business and related assets of The Kraft Heinz Company.
In August 2021, Gehl Foods, LLC. completed a major expansion of its Main Street facility in Germantown, Wisconsin, extending it to the corner of Church Street & Main Street. The 22,500 square feet addition includes four new food and packaging lines and five large silos to enhance capacity.
In November 2021, The Kraft Heinz Company announced that it has completed the sale of certain assets in its global cheese business and the license of certain trademarks to an affiliate of Groupe Lactalis for total consideration of approximately $3.3 billion, including cash consideration of approximately $3.2 billion.
Key Benefits For Stakeholders
Key Market Segments
Key Market Players