The plant-based cheese market is expected to make big gains in the next seven years, according to a new study conducted by a market research firm.
California-based Meticulous Research published a research summary on Monday predicting that the plant-based cheese market will grow to be $8.62 billion by 2031, with a compound annual growth rate (CAGR) of 9.8%. The market has been estimated to be worth 4 to 5 billion dollars.
Plant-based cheese is typically made with ingredients such as soy and almonds, and other cheese alternatives made with coconuts, oats and cashews have grown in popularity.
Among the different types of cheeses on the plant-based market – including cream cheese, mozzarella, cheddar and Parmesan – ricotta is expected to grow the fastest.
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"Based on type, the ricotta segment is expected to register the highest CAGR during the forecast period," the study notes. "Growing demand for plant-based savory dishes and rising consumer preference for soy-free or nut-free plant-based ricotta are expected to support the segment's high growth."
The research study credits the growth to an increase in the popularity of veganism and "growing investments in dairy alternatives marketspace," in addition to higher rates of lactose intolerance.
The study also credits increased interest in animal welfare and sustainability as a reason for the projected market size growth.
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"Furthermore, the adoption of vegan culinary innovations in the hotel and restaurant sector and rising awareness of health and wellness are prominent trends in the plant-based cheese market," the research summary notes.
Despite the optimistic projection, the study noted that the market may be challenged by inflation and an increase in popularity of carnivore-based diets.
"However, this market's growth is restrained by the preference for animal-based products and fluctuating raw material prices," the study acknowledged. "Moreover, emerging economies and increasing focus on new product launches."
