October 1, 2024 – In the US and Canada, consumers are increasingly choosing cheese for its versatility, indulgent flavors, and its ability to meet both traditional and evolving dietary preferences. Innova’s 360 research into cheese industry trends highlights product launches, top brands, claims, and what may develop in the future within the cheese industry.
Cheese Product Launch and Sales
North America is the second leading region for cheese cluster sales value over the past year, following Europe. The US leads the cheese cluster market with 75% of launches during the same period. However, Canada is the fastest growing country in launches.
In the US and Canada, 44% of consumers have increased their cheese consumption because it is healthy. Reflecting this demand, health claims in cheese products have grown at a 1% CAGR over the past four years.
Low/no/reduced fat and carb claims are pushing product development in the cluster. Options boasting reduced fat levels (25%, 40%, 50% less) and zero-carb/sugar varieties catering to low-calorie or keto-friendly diets are driving innovation in the market. This aligns with Innova’s annual trend of 2024, ‘Prioritizing Prevention,’ where consumers take positive action to prevent health concerns before they arise and seek products that support holistic health and well-being.
Leading Subcategories in the Cheese Industry
Cheese — semi-hard and hard is the top subcategory, followed by cheese — processed cheese, soft and semi-soft cheese, fresh and cream cheese, and soft cheese desserts in the US and Canada.
Cheese — processed cheese shows the highest 9% increase in launches over the past three years. Nearly 1 in 5 consumers in the US and Canada value inclusivity in their diets and food options that cater to diverse needs and cultures. This focus drives growth in the processed cheese subcategory, with launches that meet religious dietary guidelines like kosher and halal, as well as options for allergen-sensitive consumers, including gluten-free and lactose-free varieties. These innovations reflect a brand’s commitment to addressing individual dietary preferences and needs.
Top Brands and Companies in the Cheese Industry
Food Lion, Lactalis, Kraft Heinz, Crystal Farms, and Borden Dairy are the top 5 companies for cheese cluster launches across the US and Canada. The cheese industry trends research displays that these companies account for 21% of cheese launches in the region over the past year.
Nearly 1 in 3 consumers in the US and Canada prioritize animal welfare in their food and beverage choices, seeking nature-related claims that reflect ethical sourcing. This trend is driving the rise of ethical animal and hormone-free claims, including products free from rBST hormone treatment. These offerings cater to consumers focused on animal welfare and natural production methods. This aligns with another Innova’s annual trend of 2024, ‘Nurturing Nature,’ where businesses are expected to go beyond sustainability to make a positive difference to nature protection.
Claims and Positionings Trends
The top 5 positionings in the US and Canada cheese market are no additives or preservatives, gluten free, source of protein, natural, and traditional.
Nearly 1 in 3 consumers consider that using natural ingredients is the best way to make indulgent food and beverage categories healthier. This preference is reflected in the top positionings of natural and no additives or preservatives claims within the cheese cluster across the US and Canada. The focus on natural and less artificial ingredients also aligns with Innova’s annual trend of 2024, ‘Indulging in health,’ where cheese launches combine indulgence with added goodness. Products free from artificial colors, preservatives, or growth hormones, featuring grass-fed cows milk and locally sourced ingredients, are driving innovation in the market.
Cheese Flavor Trends
Smoked, jalapeno chili, garlic, herbs, and almonds are the top 5 flavors in the US and Canada cheese market. Apart from the top 5 flavors, habanero chili, chive, truffle mushroom, and honey flavors are growing strongly in the space. This rise in diverse and bold flavors suggests that consumers are increasingly seeking adventurous and premium taste experiences in their cheese choices. Brands are leveraging this trend by offering more innovative, flavored products that cater to these preferences.
What’s Next in the US and Canada Cheese Industry?
The US leads in cheese launches, while Canada records the highest growth rate of 7% CAGR in North America over the past four years. This growth is driven by health-focused options like preservative-free, protein-rich, and allergen-free offerings.
Nearly 50% of consumers in the US and Canada consider cheese as their preferred protein source, reflected in the 12% of launches with high protein claims over the past year. This prevalence of protein in cheese is aided by the presence of milk protein in the product, including whey and casein. Brands can capitalize on this by highlighting protein content on labels, helping consumers make informed decisions.
Flavor is a key factor, with 49% of consumers influenced by flavor attributes when buying cheese. With a diverse range of milk types, textures, and flavors available, brands can explore creating more variety using spices, herbs, vegetables, and fruits. As the demand for innovative, healthy options grows, brands that blend taste and nutrition are likely to lead in cheese industry trends.
This article is based on Innova’s Overview of Cheese in the US & Canada report. Find out more about this report by booking a demo or reach out to us using our Contact Form.
