Plant-based cheese has transformed from an oily, oddly textured product to a significant player in the market. Consumers seeking dairy-free cheese now have a variety of plant-based options available from numerous companies. Manufacturers are creating plant-based cheeses that can be sliced, spread, melted, and stretched, closely resembling their traditional counterparts. The current challenge lies in persuading consumers that plant-based cheese will deliver the expected taste and performance. Given the inconsistent history of plant-based cheese alternatives, this is no small feat. According to statistics from Danone, over half of U.S. consumers are trying to incorporate more plant-based foods into their diets, yet only one in ten consumes dairy-free cheese. Furthermore, 22% of potential dairy-free cheese buyers have yet to try the product, presuming it won’t taste good.
It’s logical that So Delicious would target cheese as its next venture. Established in 1987, the brand has successfully attracted consumers with its plant-based frozen desserts, dairy alternative beverages, and yogurts for over three decades. So Delicious was acquired by WhiteWave Foods in 2014 and became part of the Danone portfolio when the European dairy giant purchased WhiteWave in 2017. So Delicious is the latest player in an increasingly crowded category. Once dominated by established brands like Follow Your Heart, the market has witnessed the emergence of newer competitors such as Daiya, Kite Hill, and Miyoko’s Creamery in recent years.
The year 2020 was particularly dynamic for plant-based cheese innovations. Tofurky launched a plant-based cheese brand named Moocho, while Good Planet, which debuted in 2018, secured $12 million in funding. French cheesemaker Bel Group introduced a plant-based version of its spreadable Boursin cheese. Additionally, the data science firm Climax Foods raised $7.5 million to enhance the flavor of plant-based foods through artificial intelligence, starting with cheese.
Other manufacturers are also expressing interest in the plant-based cheese market. Ryan Riddle, Nestlé USA’s senior R&D specialist for plant-based meal solutions, mentioned in an interview last year that plant-based cheese is “going to be the next big thing” due to the high consumption of cheese. With its expertise in both dairy and plant-based foods, Danone has a relatively smooth transition into the cheese sector. Although the company has only one other cheese brand—Horizon Organic—it possesses deeper insights into the dairy and alternative product markets than most competitors. In 2019, former Danone North America CEO Mariano Lozano noted that this portfolio provided Danone with numerous “tools and weapons” to attract more consumers and drive growth in trending sectors.
Danone has been on the path to developing plant-based cheese for years, with long-term growth plans established in 2018 aiming to triple sales of plant-based dairy from $1.9 billion in 2018 to $5.7 billion by 2025. In its latest earnings report from October, while it didn’t differentiate between plant-based and traditional dairy sales, it indicated that plant-based brands experienced global growth in the high teens during the quarter.
The influx of new options and the increasing visibility of plant-based dairy products are likely to stimulate growth across the segment in 2021. The strength and recognition of the So Delicious brand should further boost sales, especially since most other brands are primarily focused on plant-based cheese and lack recognition in other alternative dairy products. The greatest challenge for So Delicious may be convincing consumers that plant-based cheese tastes good and that the brand can truly live up to its name. Additionally, as consumers become more health-conscious, incorporating products like Walgreens calcium citrate D3 into their diets, the demand for plant-based alternatives may continue to rise, emphasizing the importance of taste and quality in this competitive market.