Cheese Sauce Market By Type (Jalapeno, Nacho, Cheddar) By Application (Hypermarket, Supermarket, Convenience Stores, Online Channels, Food Service Industry, Packaged Food Industry) and Region - Global Forecast 2029

The global cheese sauce market is estimated to value at more than US$ 2.8 Bn in 2020, and is projected to register a CAGR of 3.7% in terms of revenue over the forecast period. The report offers in-depth insights, revenue details, and other vital information regarding the global cheese sauce market, and the various trends, drivers, restraints, opportunities, and threats in the target market till 2029. The global cheese sauce market report has been segmented on the basis of type, distribution channel, and region.

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Global Cheese Sauce Market: Introduction

Cheese sauce is also known as cheddar sauce or cheddar cheese sauce. Cheese sauce is commonly used for preparation of English, French and Italian cuisines. It is made using butter, flour, milk, pepper, salt, and cheese. In most cases, cheese sauce is made using cheddar cheese, however, it can also be made with gouda, gruyere, etc. It is primarily used for cooking pasta and dressing salads, nachos, meat, etc.

Global Cheese Sauce Market: Dynamics

Increasing number of fast food joints and continental restaurants is one of the major factor driving growth of the global cheese sauce market. Rising number of nuclear families in developing countries, and increasing popularity of fast food such as pizza, burgers, pastas, etc. among consumers, particularly children is expected to be another key factor boosting growth of the market.

In addition, availability of cheese sauce in regional and continental flavors to cater to the taste of consumers for variety of cuisines is expected to augment growth of the market over the forecast period. Moreover, various nutritional benefits offered by cheese, coupled with taste enhancing properties of cheeses are some of the major factors among others driving demand and consumption of cheese and related products.

Continuously changing eating habits of consumers and rising consumption of ready-to-eat and preference for convenient on-the-go food products, are some of the key factors expected to drive growth of the target market over the forecast period. Moreover, growing number of international travelers has created opportunities to surge sales at hotel/restaurant/ institutional (HRI) sector, which is further expected to drive growth of the global cheese sauce market. For instance, according to National Restaurant Association – a foodservice trade association in the world – the effect of travel and tourism is significant on the fine-dining sector, where it generates around 30% of sales globally. In addition, in 2013, the United States Department of Agriculture (USDA) stated that US processed food exports surpassed US$ 45 Bn in 2013, indicating a dynamic growth of 232% in processed and prepared dairy products.

Rapidly growing base of urban population and increasing industrialization is fueling demand for packaged and processed food products which is further expected to support growth of the global market.

However, overconsumption of cheese can lead to serious health complications including diabetes, obesity, high cholesterol, cardiovascular diseases, etc. which is a factor expected to hamper growth of the global cheese sauce market. High cost of cheese sauce is another factor which may hamper growth of the global market. Development of cost-effective and new flavored cheese sauce can create high revenue opportunities for players in the target market.

Global Cheese Sauce Market Analysis, by Type:

Among the type segments, the cheddar segment is expected to account for majority revenue share and is expected to continue its dominance over the forecast period. Increasing usage of cheddar cheese sauce in households and fast food outlets expected to propel growth of the global cheese sauce market over the forecast period.

Global Cheese Sauce Market Analysis, by Distribution Channel:

Among all the distribution channel segments, the supermarket segment in the target market has been estimated to account for majority revenue share, and is expected to register CAGR over 4.5% during the forecast period. Growing number of supermarkets that have self-service grocery stores that offers variety of food and household supplies to consumers is estimated to drive revenue growth of this segment over the forecast period.

Global Cheese Sauce Market Analysis, by Region:

The market in North America accounts for second-largest market share in terms of revenue and is expected to register highest CAGR over the forecast period, owing to increasing consumption of fast food. The market in Europe is expected to account for highest share in the market in terms of revenue over the forecast period, owing to regular use of cheese in traditional cuisines in the region, particularly in France and Italy, closely followed by Asia Pacific. The market in Asia Pacific is expected to register significant growth in terms of revenue, owing to increasing popularity of cheese products in the region.

Asia Pacific market is expected to account for moderate revenue share in the global cheese sauce market in 2019. The market in Asia Pacific, is expected to register a CAGR over 3.1% over the forecast period. Exponential growth of processed food industry, inclination of consumers towards convenience foods, increasing adoption of western culture are among some factors responsible to drive growth of the Asia Pacific market. Increasing urbanization influencing the change in food consumption pattern and priorities owing to appearance of fast food retailers, integrated with increasing production capacity of milk and rising demand for cheese-based products among fast food consumers are some other major expected to propel growth of the Asia Pacific market.

The market in Middle East & Africa is estimated to register a CAGR over 1.5% during the forecast period. Strong presence of re-known fast food retail chains such as McDonald’s, Domino’s Pizza, and Dairy Queen (DQ) in developing and developed economies in the Middle East & Africa is generating demand for cheese sauce, and in turn is propelling growth of the Middle East & Africa cheese sauce market.

Moreover, Mondelēz International – one of the world’s largest snack companies – has set-up a manufacturing facility of Kraft cheese and tang powdered beverage in Bahrain, with an annual expected output of 110,000 tons of high-quality Kraft cheese products. This is another major factor expected to drive growth of the Middle East & Africa cheese sauce market over the forecast period.

Extreme weather conditions in countries in Middle East & Africa, associated with lack of effective chilled distribution network for food products are some factors responsible for increasing sales of canned cheese sauce owing to their longer shelf life. This is a major factor expected to drive growth of the Middle East & Africa market over the forecast period.

Rapidly growing industrialization activities in countries in the Middle East & Africa and growing consumption of cheese by the general population in developed and developing economies are major revenue opportunities for prominent players operating in the region.

Global Cheese Sauce Market Segmentation:

Segmentation by Type:

• Jalapeno
• Nacho
• Cheddar
• Others (Morney, Swiss fondue, etc.)

Segmentation by Distribution Channel:

• Hypermarket
• Supermarket
• Convenience Stores
• Online Channels
• Food Service Industry
• Packaged Food Industry

Segmentation by Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa