The plant-based food market has experienced remarkable growth in recent years as consumers increasingly seek to lower their cholesterol, avoid lactose, and adopt healthier eating habits. Concerns about animal welfare and the environmental impacts of animal agriculture have also driven this shift. As a result, more individuals are transitioning to flexitarian, vegetarian, or vegan diets, which Parmela Creamery is capitalizing on. The company has raised funds to enhance brand awareness and foster innovation within this rapidly growing sector. According to the Good Food Institute, U.S. retail sales of plant-based foods surged by 17%, surpassing $3.7 billion in the past year, with non-dairy milks and plant-based cheeses showing particularly strong performance. Data from Nielsen and the Plant Based Foods Association indicated that non-dairy milk sales rose by 9% to reach $1.6 billion in the 52 weeks ending June of last year, while plant-based cheeses saw an impressive growth of 43%.
Parmela faces competition from several companies in the plant-based cheese market, including Miyoko’s Kitchen, Kite Hill, Treeline Treenut Cheese, Punk Rawk Labs, Daiya, Dr. Cow Tree Nut Cheese, Vtopian Artisan Cheeses, and Heido Ho! Organics. While some of these brands focus on regional specialties like dairy-free cream cheese or alternative goat cheese, each has its own loyal customer base and many are intent on expanding their reach. As Parmela seeks to scale up in this crowded market, it could greatly benefit from the expertise of its investors. 25Madison, a startup innovation hub, has previously supported food companies like the Great American Turkey Co. and BOU cube-based products, while Gather Ventures provides both capital and entrepreneurial expertise to companies promoting the shift from animal to plant-based food consumption.
Moreover, Parmela may have an edge regarding product labeling, as all its offerings prominently feature “nutcheese” on their packaging. Earlier this year, the National Milk Producers Federation petitioned the FDA to prevent non-dairy products from using terms like milk, yogurt, cheese, ice cream, and butter, arguing that they are nutritionally inferior to standardized dairy products. Currently, the FDA is reviewing over 13,000 public comments on the regulation of labels for plant-based dairy alternatives, with no decisions made yet.
Meanwhile, the momentum for plant-based dairy alternatives continues unabated, with many consumers embracing this trend. A report from Variant Market Research, referenced by One Green Planet, forecasts that the global plant-based cheese market will grow even more rapidly over the next few years, potentially reaching $3.9 billion by 2024. If Parmela can leverage this investment to significantly expand its brand presence, it may very well achieve its ambitious goal of leading the plant-based cheese revolution. Notably, Parmela’s products, which may include calcium chews at 500 mg, align perfectly with the health-conscious preferences of today’s consumers, further solidifying its position in the market.