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Market Introduction

Cheese sauce, also called as cheddar sauce or cheddar cheese sauce, mainly comprises dehydrated salts, cheese powder, emulsifying salts, and fillers such as flour, starch, buttermilk, whey, or skim milk. It is used as an ingredient in cooking pasta and is also poured over meats and vegetables. Cheese sauce contains large amount of calcium and protein due to the presence of cheese.

Market Dynamics

By the launch of new products, manufacturers are targeting consumers with busy lifestyles and this in turn is driving growth of the market. For instance, in April 2014, Simplot Australia Pty Ltd., a food manufacturer launched a range of cheese sauce products for consumers who are looking for tasty, simple, and nutritious meal ideas. Furthermore, increasing consumption of cheese and cheese products is projected to drive the market growth. 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.

However, high cost of cheese powder, which is the main ingredient of cheese sauce is expected to hinder growth of the market. Furthermore, rising prevalence of diabetes, heart diseases, and obesity are factors that are expected to restrain growth of global cheese sauce market over the forecast period. According to the Centers for Disease Control and Prevention (CDC), around 36.5% of the U.S. adults have obesity and the prevalence of obesity was higher among the adults and middle-aged population, which in turn is expected to hinder growth of the market.

Market Trends

On the basis of product type, the jalapeno cheese sauce segment is expected to show a significant growth in the cheese sauce market over the forecast period. This is attributed to advantageous health benefits of jalapeno, as it contains vitamin A, vitamin C, and various minerals such as magnesium, iron, phosphorous, and others, which helps in maintaining healthy muscular functioning and healthy RBC’s.

Online channels segment is significantly gaining traction, as it offers a wide range of products through a single website and offers free delivery. According to the Coherent Market Insights, the global online retail segment was valued at US$ 2,171.22 billion in 2016 and is expected to reach US$ 9,572.96 billion by 2025.

Market Outlook

North America is projected to witness significant growth in global cheese sauce market over the forecast period, owing to increasing disposable income and increasing demand for cheese products in variety of dishes. According to the World Bank Organization, the GDP per capita in the U.S. was US$ 56,469 in 2015 and increased up to US$ 57,638.16 in 2016. However, increasing cases of botulism in the U.S. due to consumption of contaminated food containing toxins, is negatively impacting the growth of market. According to the Centers for Disease Control and Prevention (CDC), some of the examples of contaminated foods causing botulism included cheese sauce, carrot juice, wrapped baked potatoes, and others. Also, the cheese used in cheese sauce should comply with the standards of identity for cheese and cheese based products, as stated in the U.S. Food and Drug Administration (FDA), 21 Code of Federal Regulation (CFR).

Asia Pacific is expected to be the fastest growing region in global cheese sauce market in 2017. Rapidly growing processed food industries and shifting consumer preference towards convenience food play major role in growth of global cheese sauce market. According to the India Brand Equity Foundation (IBEF), in 2016, the food processing industry in India was ranked fifth in terms of consumption, production, and exports, and increased at a CAGR of 11.74 % during 2011-2016. Furthermore, several key players in this market are focused on launching new products or technological innovations to enhance their product portfolio. For instance, in September 2016, Hexa Food Sdn. Bhd., supplier and manufacturer of herbs and spices, launched cheese sauce product “Hexa Food Cheese Sauce”, as a replacement for sauces like chili and tomato.

Market Players

Key players are focused on adopting various organic and inorganic growth strategies such as mergers and acquisitions, joint ventures and partnerships, and product or technological innovations to retain position in the cheese sauce market. For instance, in January 2018, Gehl Foods LLC, manufacturer of puddings, cheese sauce, and dairy products, acquired California Natural Products, manufacturer of nutritional and organic food ingredients, to expand their manufacturing company in California.

Some of the leading players operating in the global cheese sauce market include Gehl Foods LLC, Conagra Brands, Inc., The Unilever Group, Kraft Foods Inc., AFP Advanced Food Products LLC, Bay Valley Foods, LLC, Nestlé S.A., The Tatua Co-operative Dairy Company Limited, and Hexa Food Sdn. among others.

Cheese Sauce Market Taxonomy

On the basis of product type, the cheese sauce market is segmented into:

  • Jalapeno
  • Nacho
  • Cheddar
  • Others

On the basis of distribution channel, the cheese sauce market is segmented into:

  • Hypermarket
  • Supermarket
  • Online Channels
  • Convenience Stores
  • Others

Key Developments:

  • In 2018, Waitrose & Partners has launched its vegan product line through Saclà, an Italian manufacturer of pasta and pesto sauce since 1939. The dairy-free range includes cheese sauce and white sauce.
  • In January 2018, Sonic Drive-In, a fast-food restaurant company has launched Soft Pretzel Twist and a Signature Cheese Sauce to its menu.
  • In 2017, Veeba, an India sauce, and dressing company have launched five flavors of cheese sauces, dips and spreads.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users