The plant-based cheese market is forecasted to grow impressively, with global revenue expected to jump from $187.92 million in 2023 to $332.65 million by 2030, at a compound annual growth rate (CAGR) of 8.5%. This growth reflects broader trends in plant-based eating as more consumers move away from dairy, driven by health concerns, environmental impact awareness, and increased prevalence of lactose intolerance.

Retailers and foodservice providers alike are seeing demand for plant-based cheeses skyrocket, especially among flexitarians and vegans. Products made from nuts, soy, legumes, and oats are increasingly popular due to their diverse textures and flavors, which are now more comparable than ever to traditional dairy cheese. This innovation is key to consumer appeal, as brands cater to buyers looking for high-quality dairy alternatives that complement modern, health-conscious diets.

Two primary drivers are fueling this market surge: health and ethics. The rise in plant-based diets is largely associated with the perceived health benefits, as research links plant-based eating to reduced risks of heart disease and certain cancers. Additionally, ethical considerations—particularly around animal welfare and climate impact—are top of mind for today’s consumer. As buyers become more selective, plant-based cheeses offer a profitable niche that aligns well with demand for transparency and sustainability.

However, challenges remain. The higher price point of vegan cheese, stemming from costly ingredients and specialized production processes, is a barrier for many consumers. Moreover, while brands have made significant strides in flavor and texture, some consumers still find plant-based cheese lacking the authentic taste of dairy cheese. Limited distribution in smaller or culturally dairy-centric regions also slows down growth.

For retailers and foodservice operators, the best opportunities lie in focusing on innovation, accessibility, and partnerships. Collaborations with restaurants, cafes, and other outlets can expose new consumers to plant-based cheese, building demand through familiarity. Expanding into emerging markets, particularly the Asia-Pacific region, where rising disposable incomes and increased lactose intolerance awareness fuel demand, could be highly strategic. In Europe and North America, where demand is strong, differentiating with organic, non-GMO options and clean labeling could provide a competitive advantage.

As the plant-based cheese market expands, now is the time for foodservice providers and retailers to invest in this promising category. By capitalizing on the growing interest in healthier and sustainable food alternatives, brands that emphasize quality, flavor, and ethical sourcing can establish themselves as leaders in this rapidly evolving market.

Read more about the market projections here. And explore trending plant-based dairy products from the recent Plant Based World Expo North America to see which companies are making strides in this rapidly growing category.