Cheese Powder Market, by Product Type, Application, and End-use Industry – Global Industry Insights, Trends, Outlook, and Opportunity Analysis 2018-2025

Cheese powder is dehydrated cheese, which is manufactured and marketed in different types such as cheddar, parmesan, mozzarella, and others. The most common commercial procedure to prepare cheese powder includes melting of fresh cheese, followed by spraying it through a hot dryer to get thick powder. Cheese powder offers a unique combination of taste, flavor, functionality, and convenience in products such as sauces, dips and dressings, snacks, and ready-to-eat meals. Cheese powder is gaining popularity among consumers due to its longer shelf life and ease of handling and storage as compared to cheese. 

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Key factors such as rapidly growing processed food industries and shifting consumer preference towards convenience food play major role in growth of global cheese powder market. However, strict and changing government regulations imposed on use of food ingredients is a key challenge for manufacturers, which is restraining growth of the global cheese powder market. For instance, 21CFR133.113 by Food and Drug Administration (FDA) on cheddar cheese and related products. Under this regulation, if pasteurized dairy ingredients are used then the phenol equivalent value of 0.25 gram of cheddar cheese should not more than 3 micrograms. Rising prevalence of diabetes, heart diseases and obesity are also factors restraining growth of global cheese powder market over the forecast period.

Cheddar cheese product type segment was the largest segment in global cheese powder market in 2016 and the trend is expected to be continued over the forecast period. Increasing use of cheddar cheese powder over others in sauces, dips & dressing, bakery & snacks is fueling growth of this segment in global cheese powder market.
Sauces, dips and dressings segment accounted for highest market share in global cheese powder market, followed by bakery & snacks segment in 2016. Increasing demand for cheese powder in sauces, dips & dressing in order to get required flavor & appearance of the food is projected to retain dominance of this segment in the market during the forecast period.

Cheese Powder Market Outlook:

North America region accounted for largest market share in global cheese powder market in 2016. Owing to high presence of cheese powder manufacturers in the region along with the preference for eating convenience food, North America is projected to retain its dominance over the forecast period. According to the Canadian Dairy Information Center, per capita consumption of cheese in Canada was valued at 12.7 kg in 2015, which further increased to 13.4 kg in 2016.

Europe is projected to witness significant growth in global cheese powder market over the forecast period. Key players are strategically launching new cheese powder products to enter the cheese powder market in Europe. For instance, in June 2017, Lactosan-Sanovo Ingredients Group launched a new Edam cheese powder, which is produced from cheese with microbial rennet.

Middle East imports most of the food products from other regions due to limited arable land and water. Furthermore, regional government authorities in this region has taken bold initiatives to lower rate of obesity. In 2016, the Israel Ministry of Health launched a policy to promote healthy eating and set up a committee to define the required labeling legislation. Healthy nutrition standards are forcing food manufacturers and importers to affix red labels on foods that exceed maximum levels of sodium, sugar or saturated fats. Such activities are projected to restrain growth of cheese powder market in Middle East.

Key players in Global Cheese Powder Market:

Leading cheese powder manufacturing companies across the world include Archer Daniels Midland Company, Kraft Foods Group, Inc., Kerry Group PLC, Aarkay Food Products, Land O'Lakes Inc., Lactosan A/S, Commercial Creamery Company, Kanegrade Limited, and All American Foods among others. These companies are focusing on improving their product portfolio and geographical expansion through merger and acquisitions. For instance, in 2016, ADM acquired Wild Flavors and Specialty Ingredients to enhance ADM’s product portfolio in food ingredients market.

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