Cheese Sauce Market to Reach $9.1 billion, Globally, by 2035 at 4.4% CAGR: Allied Market Research

/EIN News/ -- Wilmington, Delaware, March 20, 2025 (GLOBE NEWSWIRE) -- Allied Market Research published a report, titled, "Cheese Sauce Market by Cheese Type (Cheddar, Mozzarella, Parmesan, American Cheese, Blue Cheese, Provolone, Gouda, Montero Jack, and Others), Source (Organica and Conventional), End User (Households and Food Service), and Distribution Channel (Convenience Stores, Hypermarkets/Supermarkets, Specialty Stores, Direct, Online Channels, and Others): Global Opportunity Analysis and Industry Forecast, 2024-2035". According to the report, the cheese sauce market was valued at $5.5 billion in 2023, and is estimated to reach $9.1 billion by 2035, growing at a CAGR of 4.4% from 2024 to 2035.

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Prime determinants of growth

The expanding food service industry significantly drives the increasing demand for cheese sauce, as restaurants, fast-food chains, and casual dining establishments continually incorporate cheese sauce into a variety of dishes. Quick-service restaurants (QSRs) like McDonald's and Taco Bell have made cheese sauce a staple in many of their popular offerings. For example, the U.S. fast food market is valued at approximately $200 billion, with nearly half of the consumers opting for takeout or fast food at least once a week. Furthermore, in the U.S. alone, restaurant sales reached $997 billion in 2023, highlighting the substantial role the foodservice industry plays in driving the consumption of cheese sauces. This growth is also fueled by consumer preferences for indulgent and flavorful meals, further increasing demand in both dine-in and takeaway formats. However, the perishability of dairy products poses a significant constraint on the demand for cheese sauce in the market, as these products have a short shelf life and necessitate proper refrigeration to prevent spoilage. Cheese sauces, particularly those made from natural dairy ingredients, are vulnerable to microbial contamination, which limits their distribution, especially in regions with inadequate cold chain infrastructure.

Report coverage & details

Report Coverage	Details
Forecast Period	2024–2035
Base Year	2023
Market Size in 2023	$5.5 billion
Market Size in 2035	$9.1 billion
CAGR	4.4%
No. of Pages in Report	501
Segments covered	Cheese Type, Source, End User, Distribution Channel, and Region
Drivers	Rise in Demand for Convenience Food Rise in in-home consumption Expanding Fast Food Culture and QSR Industry
Opportunities	Expanding Distribution Networks and Retail Channels Revolution in Clean Label Products
Restraints	Fluctuating Cheese Prices Serious Health Risks Associated with Heavy Cheese Intake

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The cheddar segment to maintain its leadership status during the forecast period

By type, the cheddar segment held the highest market share in 2023, accounting for more than one-fifth of the cheese sauce market revenue and is estimated to maintain its leadership status throughout the forecast period. Cheddar holds a prominent position in the snack and dairy industry, being one of the most frequently used cheese sauces. A notable trend in the market is the rising consumer demand for cheddar cheese sauce that offers healthier options, such as lower fat, sodium, or lactose content, as well as those catering to specific dietary needs like gluten-free or vegan preferences. This shift in consumer preferences reflects a broader trend towards nutrient-rich and protein-packed food that promise healthier substitutes for everyday consumables. As a result, the availability of cheddar cheese as a key ingredient in the bakery sector and food product companies is on the rise, as it is a fundamental component in many food preparations requiring cheese.

The conventional segment to maintain its dominance during the forecast period

By source, the conventional segment held the highest market share in 2023, accounting for nearly two-thirds of the cheese sauce market and is estimated to maintain its leadership status throughout the forecast period. A prominent trend in the conventional segment is the rise of functional food and beverage options—products enriched with ingredients that offer health benefits. Contemporary consumers are progressively pursuing healthy food alternatives that allow them to retain their favorite meals without significant alterations. However, the organic segment is expected to grow rapidly in the future. Consumers are now seeking purity when selecting fresh fruits and vegetables, with a strong inclination towards organic products. Price plays a pivotal role in the realm of organic food items, as consumers are now empowered with purchasing capabilities and are willing to invest more in these products. With a growing emphasis on health consciousness, consumers are seeking the highest quality products available. This presents a substantial opportunity for the cheese sauce market.

The foodservice segment to maintain its leadership status during the forecast period

By end user, the foodservice segment held the highest market share in 2023, accounting for nearly three-fourths of the cheese sauce market and is estimated to maintain its leadership status throughout the forecast period. The foodservice segment is experiencing notable growth driven by several key trends and opportunities. Rapid urbanization and changing consumer lifestyles are increasing the demand for convenience food, particularly in busy urban areas where quick-service restaurants (QSRs) and delivery services thrive. The integration of technology, such as online ordering platforms and mobile apps, enhances accessibility and customer engagement, further propelling market growth. In addition, there is a rising consumer preference for healthier, organic, and sustainably sourced food options, prompting foodservice providers to diversify their menus accordingly.

The direct segment to maintain its dominance during the forecast period

By distribution channel, the direct segment held the highest market share in 2023, accounting for nearly half of the cheese sauce market and is estimated to maintain its leadership status throughout the forecast period. Direct distribution channel is experiencing notable trends, growth factors, and opportunities. With the increasing dominance of e-commerce, producers are leveraging online platforms to directly reach consumers, offering convenience and a wider market reach. A key trend involves customization and specialty products, as consumers seek unique and premium cheese sauce experiences. The direct distribution channel benefits from heightened consumer awareness regarding the quality and origin of food products. Technological advancements streamline supply chain management and enhance efficiency.

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Europe to maintain its leadership status during the forecast period

By region, Europe held the highest market share in 2023, accounting for more than two-fifths of the cheese sauce market and is estimated to maintain its leadership status throughout the forecast period. In North America, the cheese sauce market continues to witness key trends that shape consumer preferences and global demand. Leading brands such as Danone maintain their dominance in this region. One prominent trend is the growing demand for premium and specialty cheese sauce, including organic milk, reflecting consumers' increasing emphasis on quality and health consciousness. In addition, flavored, and probiotic-rich options, are experiencing sustained popularity, driven by their perceived health benefits. Furthermore, there is a rising interest in lactose-free options, which aligns with dietary restrictions and preferences.

Leading Market Players: -

• Campbell Soup Company
•  Conagra Brands, Inc.
•  Kerry Group Plc.
• Unilever Plc.
• Gehl Foods, LLC.
• AFP Advanced Food Products, LLC.
• Tatua, Nestle S.A.
• The Kraft Heinz Company,
• TreeHouse Foods, Inc.

The report provides a detailed analysis of these key players in the cheese sauce market. These players have adopted different strategies such as acquisition, partnerships, and new product launches to increase their market share and maintain dominant shares in the market. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.

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