Low Fat Cheese Market Size, Share, Trends, Growth 2032

Low Fat Cheese Industry Prospective:

The global low fat cheese market size was worth around USD 3.82 billion in 2023 and is predicted to grow to around USD 6.29 billion by 2032 with a compound annual growth rate (CAGR) of roughly 5.70% between 2024 and 2032.

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Low Fat Cheese Market: Overview

Low fat cheese is a dairy product consisting of a lesser quantity of saturated fat. According to the US Food & Drugs Administration (FDA), foods with less than 1 gram of fat per serving are classified as low-saturated fat food products. Traditionally available cheese variants are considered an excellent source of calcium and protein.

However, these products also contain a high volume of saturated fat and cholesterol. Excessive consumption of saturated fat-rich cheese can have long-term health impacts such as heart disease and obesity. The growing consumer awareness about the negative health repercussions of conventional cheese is driving the demand for low fat cheese which is a healthier option as compared to its counterpart. In most cases, low fat cheeses are made using skim or nonfat milk since they contain less quantities of cholesterol and saturated fat.

The growing consumption of cheese driven by increased use in dairy products will fuel demand for low fat cheese during the projection period. In addition to this, the surge in product innovations, market expansion, and strategic partnerships will further help the industry generate novel growth opportunities in the future. The high cost of low-fat cheese and limited awareness among consumers could impact the overall revenue in the industry.

Key Insights:

• As per the analysis shared by our research analyst, the global low fat cheese market is estimated to grow annually at a CAGR of around 5.70% over the forecast period (2024-2032)
• In terms of revenue, the global low fat cheese market size was valued at around USD 3.82 billion in 2023 and is projected to reach USD 6.29 billion by 2032.
• The market is projected to grow at a significant rate due to the growing health consciousness among consumers.
• Based on the product, the ricotta cheese segment is anticipated to command the largest market share.
• Based on the distribution channel, the retail segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on region, Europe is projected to dominate the global market during the forecast period.

Low Fat Cheese Market: Growth Drivers

Growing health consciousness among consumers to drive market demand rate

The global low fat cheese market is expected to witness high growth due to the growing health consciousness among consumers. The increasing number of desk jobs and rising rate of sedentary lifestyles have prompted the onset of several health-related medical conditions among consumers.

For instance, according to the US Bureau of Labor Statistics, in May 2023, the US witnessed more than 18 million office and administrative jobs. Furthermore, the busy lifestyle of the ordinary population has had a serious impact on the health of the general public. One of the key changes observed in the consumers seeking solutions to mitigate the impact of an inactive lifestyle includes making adjustments in the diet.

For instance, the urban population is actively choosing low fat food products with higher nutritional value. Such trends are likely to positively affect the demand for low fat cheese in the coming years. According to market analysis, most low-fat cheese products are made using skim milk.

However, some other products such as cheese curds may be produced by removing the fat in later stages of the production process. Market players are focusing on ensuring that the overall nutritional quality of the cheese items remains intact even though the fat content is considerably reduced.

Rising applications in the dairy industry worldwide will generate extensive growth possibilities in the future

Low fat cheese food products have become integral to the modern dairy industry. The demand for cheese with low fat content is impacted by growing food tourism with a special inclination toward the consumption of locally popular dairy items including cheese and its derivatives.

For instance, Spain, one of the most popular countries in Europe, has a rich cheese heritage with people flying from across the globe to try some of the latest cheese innovations. The country boasts of being the origin of more than 200 types of cheeses.

Similarly, other countries across North America, Europe, and Asia-Pacific are registering higher demand for local dairy cuisines, some of which are cheese-rich. In such circumstances, the demand in the global low fat cheese market registers an extensive growth rate.

Low Fat Cheese Market: Restraints

High cost of the low fat variant as compared to traditional versions will impede the industry’s growth rate

The global industry for low fat cheese is projected to be restricted due to the high cost of the low fat variant. Traditionally consumed high fat content cheese is relatively more affordable. The cost of the low fat version increases due to the higher cost of manufacturing.

In addition to this, high fat content cheese enjoys the presence of an existing and widely comprehensive production infrastructure along with a robust supply chain. Low fat cheese industry is comparatively new with a limited number of players further resulting in increased costs.

Low Fat Cheese Market: Opportunities

Production innovation and strategic partnerships to generate growth opportunities in the future

The global low fat cheese market is projected to generate growth opportunities due to the growing rate of product innovation. Market players are focusing on delivering high nutritional value to the consumers resulting in increased revenue. In September 2024, Saputo Dairy owned Cathedral City, a leading European provider of cheese products, announced the launch of a new range of high-protein and half-fat cheddar cheese range in the UK market.

According to official reports, the product aims to cater to the needs of millennials and the Gen Z population. The novel product line is available in sliced, block, grated, and mini formats thus providing a large range of options to the buyers.

Similarly, another European player in the low fat cheese sector Valio, launched a new range of low fat cheese in Finland. The Polar5 cheese range consists of only 5% fat. It is designed to be used in sandwiches and does not contain high amounts of added salt.

Furthermore, food & beverage companies are increasingly participating in strategic collaborations to tap into unexplored markets. In May 2024, reports emerged suggesting that Britannia Industries Ltd, one of India's leading biscuit manufacturers, was seeking joint venture (JV) opportunities to enter new segments such as fresh dairy, chocolates, and salty snacks.

Low Fat Cheese Market: Challenges

Limited awareness in low-income economies and competition from traditional cheeses to challenge market expansion

The global industry for low fat cheese is projected to be challenged by the limited awareness around the benefits of low fat content cheese products, especially in low-income economies.

Furthermore, traditional cheese solutions enjoy the perks of a well-established market and consumer loyalty which is difficult to overtake. On the other hand, improving the shelf life of low fat cheese is one of the technical barriers impacting overall revenue in the industry.

Low Fat Cheese Market: Report Scope

Low Fat Cheese Market: Segmentation

The global low fat cheese market is segmented based on product, distribution channel, and region.

Based on the product, the global market segments are mozzarella sticks, hard cheese, feta cheese, and ricotta cheese. In 2023, the highest demand was listed in the ricotta cheese segment. It held control over 35.05% of the final revenue in 2023. It is produced either using a combination of whey and milk or from reduced-fat milk. Low fat ricotta cheese has several applications including as a key ingredient in desserts and savory dishes. The high protein content of ricotta cheese is an essential segmental growth driver.

Based on the distribution channel, the global market segments are food services and retail. In 2023, the highest growth was listed in the retail segment. According to market analysis, it dominated nearly 54.01% of the total market share. The retail industry includes individual standalone shops selling grocery items as well as large-scale supermarkets and hypermarkets. The growing rate of consumer footfall across major food product retailers worldwide is fueling the segmental demand. Additionally, these facilities house several brands under one roof thus providing multiple options to the consumers.

Low Fat Cheese Market: Regional Analysis

Europe is the leading contributor to the final revenue in the industry according to market research

The global low fat cheese market will be led by Europe during the projection period. It is projected to grow at a CAGR of more than 3.7% during the forecast period. One of the primary reasons driving the regional demand is the higher number of cheese consumers across European countries.

Furthermore, cheese production across Europe is significantly high as compared to other regions. France, for instance, is one of the leading producers and consumers of several types of cheeses. Cheese-related awareness among the general population is significantly high leading to greater demand for low fat cheese.

In addition to this, growing health consciousness among European citizens as well as greater demand for dairy items influenced by higher tourism will further help the region thrive in the coming years.

Asia-Pacific will emerge as the second-highest growth driver worldwide. Countries such as China and India have high consumer populations. Additionally, the surge in demand for healthier cheese alternatives across Asia-Pacific will promote regional market expansion.

In October 2024, Bel Group and Britannia announced a novel partnership aimed at the development of a local cheese manufacturing facility in India. The surge in demand for low fat cheese across food service sectors in Asian countries will also fuel regional revenue.

Low Fat Cheese Market: Competitive Analysis

The global low fat cheese market is led by players like:

• Aldi Emporium Lighter Cheese
• Cathedral City (Lighter Range)
• Arla Cream Cheese (Light Range)
• Pilgrim's Choice Lighter Cheese
• Weight Watchers Cheese
• Eatlean
• Philadelphia Fat-Free Cream Cheese
• Kraft Fat-Free American Cheese
• Leerdammer Light
• Laughing Cow Light Cheese Wedges
• Waitrose Essential (Reduced Fat Cheddar)
• Trader Joe's Lite Mozzarella
• Co-op Lighter Cheese
• Horizon Organic Low-Fat Cheese
• Sargento Reduced Fat Cheese.

The global low fat cheese market is segmented as follows:

By Product

• Mozzarella Sticks
• Hard Cheese
• Feta Cheese
• Ricotta Cheese

By Distribution Channel

• Food Services
• Retail

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa