Vegan Cheese Sauce Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[221+ Pages Report] According to Facts & Factors, the global vegan cheese sauce market size was valued at USD 102.21 million in 2023 and is predicted to surpass USD 192.71 million by the end of 2032. The vegan cheese sauce industry is expected to grow by a CAGR of 7.30% between 2024 and 2032.

Market Overview

The vegan cheese sauce is a healthy alternative to the traditional dairy-based cheese sauce. The product mimics the taste and texture of traditional cheese products without the inclusion of any animal or animal by-product in preparation. It is becoming a popular choice among vegans. Individuals with any dietary restrictions or lactose intolerance issues can adopt vegan cheese sauce by swiping their traditional cheese sauce products.

Moreover, it is said to be a more environmentally friendly alternative to traditional products. It is made up of nutritional yeast vegetables, plant milk, starches, thickeners, nuts, and seeds. Vegan cheese sauce can be used as toppings, dips, pasta sauces, and in many other applications.

Key Insights

• As per the analysis shared by our research analyst, the global vegan cheese sauce market size is estimated to grow annually at a CAGR of around 7.30% over the forecast period (2024-2032).
• In terms of revenue, the global vegan cheese sauce market size was valued at around USD 102.21 million in 2023 and is projected to reach USD 192.71 million by 2032.
• Health and wellness trends are driving the growth of the global vegan cheese sauce market.
• Based on the sales channels, the indirect sales channel segment is growing at a high rate and is projected to dominate the global market.
• Based on the end-users, the food processing segment is projected to swipe the largest market share.
• Based on sources, the soy milk segment is expected to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Health and wellness trends are driving the growth of the global market.

Consumers are becoming more aware of the health benefits of plant-based diets, which is a primary factor for the high growth rate of the global vegan cheese sauce market. A plant-based diet lowers diabetes, heart disease, and many cancer-associated illnesses.

Additionally, vegan cheese sauce is considered a healthier product than its traditional counterparts. Moreover, the rising incidents of dairy allergies and lactose intolerance issues are further boosting the demand for dairy products like vegan cheese sauce. Growing awareness regarding the impact of dairy farming, like land degradation and greenhouse gas emissions, is driving the growth of vegan cheese sauces.

Growing awareness among people regarding animal welfare is also likely to positively impact the growth trajectory of the industry. The improved nutritional profile of vegan products like cheese sauces is further attracting health-conscious consumers. The ongoing innovation in the field of vegan cheese sauce is further expected to support the growth of the trajectory.

For instance, Treeline Cheese came up with its new product line of vegan cheese in 2020. The cheese is made from cashew nuts and other plant ingredients. These are available in different offerings like chive, onion, basil, and strawberry.

Restraints

• High production costs are likely to hamper the growth of the global market.

High-quality plant-based ingredients are expensive. Also, the production cost is high as compared to traditional cheese sources. Manufacturing vegan cheese sauce involves more complex processes to come up with a taste and texture similar to that of traditional products. Price sensitivity, like higher retail prices and limited purchasing power, is likely to negatively impact the growth of the vegan cheese sauce industry.

Opportunities

• Economic and social factors are likely to open new growth opportunities in the global market.

The rising disposable income is driving people to purchase premium and specialty food products like vegan cheese sauces. Urbanization is fostering a fast-paced lifestyle, which creates demand for ready-to-eat, convenient, and healthy food options like vegan cheese sauces. The growing popularity of flexitarian and vegetarian diets is also likely to foster growth opportunities in the global vegan cheese sauce market.

The fast expansion of distribution channels in the field of vegetarian products is making these products more accessible to a wider audience, which in turn is expected to support the growth of the industry. For instance, Bel Brands came up with six new flavors in vegan cheese sauces in 2021. These products are now available under Danone's brand named So Delicious.

Challenges

• Taste and texture perception are a big challenge in the global market.

People are still skeptical regarding the taste and nutritional profile of vegan cheese sauces, which is a big challenge in the vegan cheese sauce industry. Moreover, a lack of awareness among people regarding the health benefits of plant-based products like vegan cheese sauces is expected to slow down the growth of the industry.

Segmentation Analysis

The global vegan cheese sauce market can be segmented into sales channels, end-users, sources, and regions.

On the basis of sales channels, the market can be segmented into direct and indirect sales. The indirect sales channel segment accounts for the largest share of the vegan cheese sauce industry. Indirect sales channels include hypermarkets, supermarkets, specialty stores, convenience stores, and many others. The widespread accessibility of these stores is the primary reason for the high growth rate of the segment.

These stores are generally located in multiple numbers at the common accessible points in Urban and suburban areas. There is still a large chance of people who prefer purchasing food products offline, where they can check the products before making the purchase decision. The trust factor plays a major role in attracting traffic to these stores. Indirect sales channels offer a variety of vegan cheese sauce brands along with a number of flavors to help consumers choose from a broad range of selections. The fast expansion of retail chains in emerging markets is likely to grow the sales of these product manifolds in the coming years.

On the basis of end-users, the market can be segmented into household, food service, dairy & dessert, ready meals, processed & baked foods, dips & sauces, baked goods, food processing, and others. Foodservice is the fastest-growing segment in the global vegan cheese sauce market. Surging demand for increasing food options on the menu is an important factor fostering growth in this segment. Vegan cheese sauce has become a staple food in many of these food service establishments and restaurants.

Vegan cheese sauce is a versatile ingredient and can be used in different forms in a variety of dishes, ranging from salads and nachos to pasta and pizza. Rising awareness among people regarding their health and wellness is further promoting food service providers to come up with healthier menu options, which is likely to positively impact the growth trajectory of the segment.

Moreover, the rising popularity of vegan fast food chains in urban areas is likely to further widen the scope of the segment. Vegan alternatives are gaining popularity among people. Therefore, there are huge growth opportunities for vegan cheese sauces in the food service sector.

On the basis of sources, the market can be segmented into cashew milk, coconut milk, soy milk, almond milk, and others. The soy milk segment is expected to witness significant growth in the coming years. Soy milk is rich in minerals, vitamins, and protein, and therefore, it is viewed as a wholesome alternative to dairy products.

Moreover, soy is low in cholesterol and saturated fat, which further attracts health-conscious consumers across the globe. Soy is widely available and has a history of use as a dairy substitute. Moreover, it is more versatile in nature because of its neutral flavor. It can be used in a wide range of recipes, like smoothies. It served as an excellent base for vegan cheese sauces.

Additionally, the growing vegan population all across the globe is the primary factor accentuating the growth of the segment in the coming years. Product innovation is another major factor likely to open new growth opportunities in the segment. Manufacturers are coming up with improved soy milk-based cheese sauce products to align with the rising consumer preferences. Soy is considered an environmentally friendly and sustainable option compared to dairy products, which in turn further appeals to environmentally conscious consumers. All these factors are expected to foster growth in the segment during the forecast period.

Report Scope

Regional Analysis

• North America to dominate the global market.

North America will account for the largest share of the global vegan cheese sauce market during the forecast period. The US is the largest market in North America, largely driven by the presence of strong market players in the region. The growing vegan population in the US is another major factor positively impacting the growth trajectory of the regional market.

Urban centers like San Francisco, Los Angeles, and New York are leading the market because of the high consumption of vegan cheese sauce in the region. Canada is also a growing market in North America because cities like Vancouver and Toronto are progressively including vegan diets in their food culture.

Asia Pacific is another major region likely to contribute towards the high growth rate of the market. Australia and New Zealand are leading the APAC market because of the growing awareness of health issues among people. These countries are becoming an established market for plant-based products like vegan cheese sauce. China is also growing rapidly because of the growing interest of people in Western dietary trends. Beijing and Shanghai are major urban centers that are likely to contribute to the growth of the APAC market.

India will also witness significant potential for growth in the coming years because of the presence of a large vegetarian population in the country. India has witnessed a history of vegetarian food, and therefore, a growing range of vegan products like cheese sauce can be expected to launched in the coming years. Bangalore, Delhi, and Mumbai are major cities that contribute to the growth of the regional market. For instance, Aldi came up with a vegan cheese product line under the Plant Menu label in 2022. The product line is completely free of soy and gluten.

Competitive Analysis

The key players in the global vegan cheese sauce market include:

• TreeHouse Foods Inc.
• Upfield
• Treeline
• Gardener Cheese Company
• Daiya Foods Inc.

For instance, Upfield unveiled its all-new vegan cheese product under Violife in 2021 to the Middle East. The product was available in two flavors, mozzarella and cheddar, and in different packaging formats like grated, boxes, and slices.

The global vegan cheese sauce market is segmented as follows:

By Sales Channels Segment Analysis

• Direct
• Indirect Sales

By End-Users Segment Analysis

• Household
• Food Service
• Dairy & Dessert
• Ready Meals
• Processed & Baked Foods
• Dips & Sauces
• Baked Goods
• Food Processing
• Others

By Sources Segment Analysis

• Cashew Milk
• Coconut Milk
• Soy Milk
• Almond Milk
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America