North America Cheese Powder Market Size, Share & Trends Analysis Report By Product (Parmesan, Cheddar, Romano, Swiss), By Application (Bakery & Confectionery, Flavors, Snacks, RTE), And Segment Forecasts, 2021 - 2028

Report Overview

The North America cheese powder market size was valued at USD 1,418.50 million in 2020 and is expected to witness a compound annual growth (CAGR) of 4.9% from 2021 to 2028. Increasing demand for natural flavors and ingredients from the food and beverages sector is expected to be a key driver for market growth. Changing consumer lifestyles and the high urbanization rate in North American countries are contributing to the growth of the Ready-To-Eat (RTE), and snacks segments, which, in turn, is driving the demand for exotic foods and flavors. However, increasing concerns regarding the safety of products and stringent regulations related to sanitation, labeling, storage, and processing of products could be a challenge for the industry participants.

The U.S. was the worst-hit country by the Covid-19 pandemic in 2020. Preventive measures to contain the spread of the infection resulted in countrywide lockdowns throughout 2020, which majorly affected restaurants, food chains, and fast-food outlets in the country. The higher unemployment rate and high inflation due to reduced supplies affected the restaurant industry in the U.S., leading to reduced product demand.

However, the retail sales of snacks and ready-to-eat food & beverages significantly increased owing to increased snacking, which has positively affected the product demand.  The market is dominated by manufacturers including Land O’Lakes, Inc., ADM, Kerry Group, The Kraft Heinz Company, and others.

The manufacturing process involves melting fresh cheese with water and using emulsifying salt to create emulsion in the melted cheese, which is called cheese feed. This cheese feed is then processed through multiple drying methods including spray drying, freeze-drying, vacuum freeze-drying, and vacuum thermal drying to produce the final product.

Manufacturers majorly use spray drying to obtain the final product owing to its cost-effectiveness in handling high volumes compared to other methods, such as freeze-drying and vacuum freeze-drying. However, the popularity of the freeze-drying method is increasing as it ensures no loss of nutrients and high quality of product output.

The global fast-food industry generated a revenue of over USD 647.7 billion in 2019, the U.S. alone contains over 200,000 fast-food restaurants. The rapid expansion of the middle-class population in emerging countries, such as Mexico, has increased the demand for fast foods. Also, there has been a shift in the dietary patterns and food habits of consumers who seek both quality and convenience in their food choices.

The fast-food industry is highly influenced by the changing lifestyle of the younger population, especially millennials. Fast food brands have been evolving with changing consumer trends, which is expected to have a positive impact on cheese powder market growth in the North America.

Product Insights

The cheddar cheese powder segment dominated the market in 2020 with a revenue share of over 40%. Cheddar cheese is a ripened, hard cheese and has a long shelf life. It has a high demand due to its distinct flavor, taste, and aroma. Increasing demand for specialty and premium flavors is expected to create opportunities for the growth of this segment.

According to data published by the USDA, production of cheese other than American style cheese accounted for 7.8 billion pounds of production in the U.S. in 2020. The mozzarella cheese powder segment registered the highest share of 78.5% followed by Provolone (7.5%) and Parmesan (6.7%) among Italian cheese types produced in North America. Parmigiano Reggiano or Parmesan cheese is among the top Italian cheese types in the North America region. It is widely used in bread recipes, soups, salads, and pasta.

Other cheese powders including Blue cheese, Romano, and Swiss. These are also gaining popularity owing to their exotic taste. These products are anticipated to grow considerably on account of their utilization in a wide range of applications, such as snack seasonings, salad dressings, dips, sauces, and topical snack coatings.

The growing consumer preferences for cheese as a natural food ingredient have boosted the product demand. However, increasing awareness regarding the adverse health effects of cheese, including heart problems, high cholesterol levels, and obesity, is expected to hamper the market growth over the forecast period.

Application Insights

In terms of revenue, the snacks application segment dominated the market with a share of 26.9% in 2020. The global sales of snacks totaled approximately USD 519.6 billion in 2020 and North America held a significant share of it. The sales grew significantly in Mexico owing to growing per capita disposable incomes, presenting a potential growth opportunity for the industry.

The increasing popularity of snacks as a meal replacement in the developed regions like North America owing to a rise in the working-class population is expected to aid the product demand over the forecast period.

The development of innovative baked products with low fat and low trans fat, while containing whole grain, multigrain, and organic ingredients is expected to boost the industry growth. Increasing penetration of premium and packaged products is expected to provide growth opportunities to the manufacturers.

Flavors are expected to be one of the fastest-growing applications over the forecast period. Cheese powder is a popular flavoring agent with a natural origin and long shelf life without the addition of preservatives. Consumers are favoring natural ingredient-based food products owing to growing awareness related to the ill effects of synthetic flavors, which is responsible for the high demand for clean label products in North America.

The RTE application segment is expected to witness a revenue CAGR of 5.7% over the forecast period. The global pandemic has boosted the demand for RTE meals in the region owing to the closure of restaurants and foodservice outlets. Moreover, these meals are easy to prepare.

Country Insights

Growing preference for authentic and natural cheese products in the convenience food industry is reshaping the market. In recent years, the demand for cheese has surged in the processed snacks industry owing to its exotic flavor and nutritional properties.

The U.S. accounted for a significant revenue share in 2020 in the North America market owing to a large consumer base and abundant availability of raw materials. The occurrence of food intolerances and various food allergies are on the rise in the U.S. with lactose intolerance being one of the prominent ones, resulting in the rising demand for cheese powders with lower quantities of lactose.

Canada is the second-largest producer of cheese in the region with total cheese exports exceeding 10 million kg. Canada has a high urbanization rate. Higher per capita disposable incomes are also expected to augment the market growth in the country.

Mexico is expected to witness the fastest growth rate over the forecast period. Economic development is changing the demographics of the country including increasing urban population, changing lifestyles, and growing population. Mexico is the second-largest producer of cow milk in the region and the production levels exceeded 12.75 million tons in 2020. The country has a significant level of cheese production owing to ample raw material availability.

Key Companies & Market Share Insights

The market is highly competitive and is driven by consumer demand and innovative product offerings. The market presents several growth opportunities for new participants owing to the easy availability of raw materials. The continuous shift in consumer preferences has helped stir up the market, which used to be limited to cheddar cheese powder. Factors, such as regional market size, production capacity, demand for new products, competition intensity, labor costs, and infrastructure availability, influence the distribution of final products. These factors act favorably in Mexico, leading to a higher growth rate in the country as compared to the U.S. and Canada. Some of the prominent manufacturers in the North America cheese powder market include:

• Land O’lakes, Inc.

• Kerry

• The Kraft Heinz Company

• Lactosan A/S

• Adm

• All American Foods

• Commercial Creamery Company

• Dairy Farmers of America, Inc.

• Bluegrass Ingredients, Inc.

• Agropur

North America Cheese Powder Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the North America cheese powder market report on the basis of product, application and region:

• Product Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

  • Cheddar

  • Parmesan

  • Blue Cheese

  • Romano

  • Swiss

  • Other

• Application Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

  • Snacks

  • Bakery & Confectionery

  • Dips/Dressings/Dry Mix/Sauces

  • Flavors

  • Ready-To-Eat

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico