Global Cheese Sticks Market by End User (Retail and Restaurant), Types (Natural Cheese and Processed Cheese), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032

Cheese Sticks Overview

A cheese stick is a type of cheese that has been created into a stick-like, individual serving. Cheese is high in vitamins and minerals such as vitamin B12, calcium, and selenium. One serving of string cheese contains 20% of the RDA for calcium, 14% for the important mineral selenium, and 20% for the RDA for vitamin B12. This form of cheese is commonly manufactured from cheddar or mozzarella cheeses and is similar to string cheese; however, unlike string cheese, the cheese is generally a solid stick of cheese rather than a cheese that can be pulled apart into different strands. Cheese sticks are great for snacks or as the main ingredient in recipes like breaded cheese sticks.

COVID-19 Impact on Global Cheese Sticks Market

The COVID-19 pandemic has had a significant impact on the cheese sticks market, as the persistence of COVID-19 for a longer period has disrupted the supply and demand chain, making it difficult to supply raw materials for cheese-based snacks to manufacturers, effectively halting the manufacturing process. During the early stages of the COVID-19 pandemic, the food industries saw a fall in the cheese-based snacking market due to mobility restrictions, de-globalization, loss of income, restrictions on product import and export, and restrictions on raw material supply, among other factors. All of these variables had a detrimental impact on market growth.

Expansion of Retail Channels to Drive the Market Growth

The expansion of retail channels, such as supermarkets, hypermarkets, convenience stores, and specialty cheese stores, makes cheese sticks more accessible to consumers. These retail outlets typically stock a wide range of cheese products, including cheese sticks, offering convenience and variety to customers. The increased availability of cheese sticks in different retail formats attracts more consumers and expands the potential customer base. Such channels often position cheese sticks strategically near checkout counters or in prominent display areas, which increases their visibility and promotes impulse purchases. Consumers, while waiting in line or browsing through aisles, may be enticed to pick up cheese sticks as a quick snack or appetizer option.

It also offers a platform for cheese stick brands to establish their presence and build brand loyalty. The growth of e-commerce and online retail platforms also plays a significant role in driving the market growth of cheese sticks. Consumers can conveniently purchase cheese sticks online, accessing a broader range of brands and flavors. Online retail platforms enable small and niche cheese stick producers to reach a global audience, expanding their market presence and contributing to overall market growth.

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Adverse Health Effects to Restrain the Market Growth  

Cheese is a great source of calcium and protein but at the same time it is often high in saturated fat and salt. That means eating too many cheese sticks can lead to high blood pressure and cholesterol, increasing in risk of cardiovascular diseases. Also, cheese sticks contain lactose, a sugar that can't be digested by lactose-intolerant people because their bodies lack the enzyme that breaks it down. In these cases, eating lactose can lead to digestive problems including bloating, gas, and diarrhea. These factors are anticipated to hinder the cheese sticks market growth.

Product Innovation to Drive Excellent Opportunities

Product innovation allows cheese manufacturers to develop a wide range of cheese varieties, flavors, and formats that cater to diverse consumer preferences. By offering unique and differentiated cheese products, companies can capture the attention of consumers and expand their customer base. Innovations such as flavored cheese sticks, specialty cheeses, or fusion blends can attract new customers and drive market growth.

The global cheese market has witnessed a shift towards healthier and more nutritious options due to increasing health and wellness concerns among consumers. Product innovation enables the development of healthier cheese alternatives, such as low-fat, reduced-sodium, or lactose-free options. Incorporating functional ingredients like probiotics or natural additives can also align with consumer demands for added health benefits. Innovative cheese products can tap into the growing health-conscious consumer segment by addressing these trends.

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Global Cheese Sticks Market Growth, by End-User, 2022

The retail sub-segment accounted for the highest market share in 2022. The retail sub-segment has experienced significant growth due to the increasing consumer demand for cheese sticks. Consumers are increasingly seeking convenient, ready-to-eat snacks, and cheese sticks provide a portable, tasty option that can be easily consumed at home, work, or on-the-go. The convenience factor, coupled with the rising popularity of snacking, has contributed to the surge in retail sales of cheese sticks. Cheese sticks are often positioned strategically near checkout counters or in dedicated snack aisles, capitalizing on impulse purchases and the growing trend of snacking.

The convenience of grabbing a pack of cheese sticks as a quick and satisfying snack has contributed to their popularity among consumers. Retailers have capitalized on this trend by promoting cheese sticks as a convenient and indulgent snack option, driving their sales in the retail sub-segment. This sub-segment has witnessed a diverse range of cheese stick products, flavors, and brands. Manufacturers have focused on product innovation to cater to different consumer preferences and to stand out in the market. Retailers have played a crucial role in showcasing and offering these innovative cheese stick options to consumers, driving growth in the retail sub-segment.

Global Cheese Sticks Market Size, by Type, 2022

The processed cheese sub-segment accounted for the highest market share in 2022. Processed cheese offers versatility and convenience, making it popular among consumers. It can be easily sliced, melted, and incorporated into various dishes and food products, such as sandwiches, burgers, pizzas, and dips. The convenience factor of processed cheese, including its long shelf life and easy handling, has contributed to its widespread use and popularity. Processed cheese has a longer shelf life compared to natural cheeses due to the manufacturing process. This extended shelf life makes it an attractive option for both consumers and retailers. Retailers can stock and sell processed cheese without concerns about spoilage or wastage, contributing to its higher market share.

Processed cheese offers a consistent texture and meltability, which is desirable for many applications, including sandwiches, burgers, and processed cheese-based snacks. Its uniformity and smoothness make it easier to handle and ensure consistent taste and texture across batches and products. Processed cheese is often priced more competitively compared to some natural cheese varieties, making it accessible to a broader consumer base. The affordability factor has contributed to its higher market share, especially in price-sensitive markets or among consumers with budget constraints.

Global Cheese Sticks Market Share, by Region, 2022

The North America cheese sticks market generated the highest revenue in 2022 due to consumer preference for convenience food. Demand for cheese snacks has increased in recent years as a result of cultural globalization and shifting customer preferences for healthy snacking. Furthermore, since the COVID-19 pandemic, snacks have become a valued commodity for North American consumers. North America has a long-standing culture of cheese consumption, with cheese being a staple ingredient in various dishes and snacks. The familiarity and preference for cheese-based products, including cheese sticks, have contributed to the high demand and revenue generation in the region. The food service industry, including restaurants, cafes, and institutional catering, contributes significantly to the revenue of the cheese sticks market. Cheese sticks are popular menu items in quick-service restaurants, sports stadiums, movie theaters, and other food service establishments. The high demand from the foodservice and institutional sectors further drives the revenue in the region. It has witnessed a growing health-conscious consumer segment that seeks healthier snack options. Manufacturers have responded to this trend by introducing healthier variations of cheese sticks, such as low-fat or reduced-sodium options. These healthier alternatives have attracted health-conscious consumers, contributing to the revenue generation in the region.

Competitive Scenario in the Global Cheese Sticks Market

Innovations, acquisitions and product launches are common strategies followed by major market players. For instance, in March, 2023 Crystal Farms Dairy Company unveiled two new flavors to its popular line of snack cheese sticks. The company, known for its commitment to producing high-quality dairy products, has introduced Gouda and Sharp Cheddar varieties, specifically tailored to cater to adult palates.

Some of the leading cheese sticks market players are Agropur, Keith's Quality Foods, Baker Cheese, McCain Foods, Innovate Foods, Cavendish Farms, Leprino Foods, Rich Products Corporation, SALOMON FoodWorld® GmbH, John Wm. Macy's Inc., Sargento, Frigo Cheese Heads, Miao Kelan Duo, MILKANA, Arla Foods, and Bega Cheese.