Category: Product Expertise
Why Natural Cheese is Powering Category Growth
Natural Cheese Consumption is Growing
Natural cheese has never been more relevant. As US consumers double down on flavor, quality and protein‑forward foods, the segment continues to outperform and set the pace for category growth. For brands and manufacturers, understanding the “why” behind this shift is key to capturing demand and staying ahead of the market.
The Category Powerhouse
According to Mintel’s latest US Cheese Market Dynamics Report (2025), natural cheese continues to dominate retail, accounting for 71% of the cheese market. With an estimated $23.7 billion market size in 2025 and steady growth expected through 2030, natural cheese remains not only the largest segment but also the most resilient.
By contrast, processed cheese is under pressure. Evolving consumer expectations and growing apprehension of “processed foods” have contributed to stagnant or declining performance. For brands and manufacturers navigating these shifts, natural cheese presents a clear path to drive innovation, capture value and unlock long-term growth.
By The Numbers
US: total retail sales and forecast of cheese, by segment, at current prices, 2019-30
Source: Mintel’s US Cheese Market Dynamics Report, 2025
| Natural Cheese | Processed Cheese | |||
| Year | $ million | % change | $ million | % change |
| 2019 | 17,220 | – | 3,689 | – |
| 2020 | 20,301 | +17.9 | 4,281 | +16.1 |
| 2021 | 20,054 | -1.2 | 4,140 | -3.3 |
| 2022 | 21,321 | +6.3 | 4,420 | +6.8 |
| 2023 | 22,167 | +4.0 | 4,444 | +0.5 |
| 2024 | 22,796 | +2.7 | 4,389 | -1.2 |
| 2025 (est) | 23,737 | +4.3 | 4,294 | -2.2 |
| 2026 (fore) | 24,441 | +3.0 | 4,303 | +0.2 |
| 2027 (fore) | 25,169 | +3.0 | 4,300 | -0.1 |
| 2028 (fore) | 25,815 | +2.6 | 4,303 | +0.1 |
| 2029 (fore) | 26,242 | +1.7 | 4,296 | -0.2 |
| 2030 (fore) | 26,625 | +1.5 | 4,316 | +0.5 |
Why Natural Cheese is Powering Category Growth
1. Versatility & Snacking Culture
Cheese has firmly claimed its spot as a go‑to snack. More than half of consumers (56%) report eating cheese as a snack in the past three months,1 and natural cheese formats such as sticks, cubes and single‑serve portions align perfectly with today’s demand for convenient, high‑protein snacks. For retailers and brands, this creates opportunities to expand on-the-go, portion-controlled and multi-pack offerings that fit seamlessly into busy lifestyles.
2. Flavor First
Across the category, flavor remains king. Roughly 30% of cheese consumers cite flavor as the most important purchase driver—outranking format or ingredient considerations.1 With its range of textures, taste profiles and aging possibilities, natural cheese is uniquely positioned to deliver the sensory experience consumers expect from everyday favorites to premium specialty offerings.
3. Innovation & Novelty Capture Younger Consumers
Younger buyers (18–34) are particularly adventurous, with 40% seeking new cheese experiences.1 From bolder flavors to new cuts, blends and functional benefits, natural cheese offers an ideal canvas for innovation. Brands that experiment with global flavors, seasonal offerings and cross-category collaborations can win with trend‑driven consumers and differentiate on shelf.
4. Health & Nutrition Matter—More Than Ever
As high‑protein lifestyles continue to rise, natural cheese’s nutritional profile is a clear advantage. It’s a strong source of protein and calcium. For consumers looking to balance indulgence with wellness, natural cheese is a “better‑for‑you” option compared to processed alternatives.
5. Premiumization & Ingredient Transparency
Premium brands with shorter ingredient lists and strong origin stories are outperforming the market. Simplicity, authenticity and craftsmanship resonate with consumers, especially Millennials and Gen Z. For private label and national brands alike, highlighting clean labels, responsible sourcing and production expertise is an effective way to build trust and justify premium price points.
Why Processed Cheese is Struggling
The processed cheese segment posted a two‑year decline and is projected to remain flat. Key challenges include:
- Concerns about ultra‑processed foods: 34% of U.S. adults cite “highly processed” ingredients as a top concern when buying food.1
- Shifting snacking habits: More consumers prefer natural formats for perceived health and quality.
- Reduced novelty: Innovation in processed cheese has not kept pace with the natural segment.
- Brand loyalty erosion: Younger consumers are less tied to legacy processed cheese brands.
Even so, processed cheese continues to play a critical role in foodservice where wellness influences only 11% of meal decisions, as dining out remains more focused on convenience and indulgence (Circana). It will also continue to be a staple in specific applications, such as sauces, stuffed entrées and microwaveable products. While growth projections are limited, snackable formats and flavor innovation present opportunities for processed cheese brands to stay relevant.
Natural Cheese Opportunities for Brands
For retailers, food manufacturers and packaging partners, natural cheese presents strong opportunities across:
- Private label expansion
- Premium product lines
- Snack innovation
- High‑protein and functional formulations
- Foodservice customization
- Ingredient applications for ready‑to‑eat and ready‑to‑heat meals
With private label now holding 52% of natural cheese market share, value‑driven consumers are clearly receptive to private brands and looking for more choice across formats, price points and quality tiers.
Hilmar: Your Partner in Natural Cheese Excellence
At Hilmar, we specialize in producing high‑quality natural cheeses designed for private label, regional and national brands. Our focus is simple: deliver consistent, high‑performing cheese that protects your brand and your margins.
Whether you’re expanding a retail line, innovating a new snack product or optimizing your ingredient supply chain, Hilmar brings the expertise, scale and flexibility to help you move quickly and confidently. Our teams collaborate with you from formulation through packaging to ensure your products perform on shelf, in the kitchen and with consumers.
The Bottom Line
Natural cheese is the engine behind category growth – and the momentum is expected to continue through 2030 and beyond. With strong consumer demand, nutritional advantages and endless innovation potential, it’s the clear growth engine for brands across retail, foodservice and CPG.
Hilmar is here to help you capture that demand with high‑quality, nutritious, reliable natural cheese that elevates your brand and strengthens your business for the long term, and we invite you to explore what’s possible in your portfolio with us.
Sources:
- Mintel US Cheese Market Dynamics Report, 2025
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Breaking Down the Whey Protein Alphabet
WPC, WPI and WPH Explained
Protein Fortification: A Growing Trend
Protein isn’t just for athletes anymore. Today, consumers are seeking protein in everyday foods and beverages—from snacks and bakery items to ready-to-drink beverages and even indulgent treats. This surge in demand is driven by health-conscious lifestyles, weight management goals and the growing recognition of protein’s role in satiety and muscle maintenance.
For manufacturers, this trend represents both an opportunity and a challenge: how to deliver high-quality protein without compromising taste, texture or functionality. Whey protein stands out as a solution because of its superior amino acid profile, versatility and clean dairy origin.
The Basics: What is Whey Protein?
Whey is the liquid byproduct of cheese production, rich in lactose, minerals and high-quality proteins. These proteins are prized for their nutritional profile and functional versatility, making them essential in sports nutrition, health and wellness foods and mainstream consumer products.
Hilmar's Whey Protein Stream
Fresh, Superior-Quality Whey Stream
Our whey originates from our state-of-the-art cheese manufacturing operations, all crafted with our premium milk supply sourced from independent family-owned dairies.
Processing Expertise
We meticulously process the liquid whey, eliminating excess water, carbohydrates and minerals with advanced filtration methods.
Cutting-Edge Innovation
We further process for fractionation, agglomeration and hydrolysis to produce a wide range of functional and highly nutritious protein ingredients.
Why Are There Various Types of Whey Protein?
Different applications demand different performance attributes from their protein source. To meet these needs, processors like Hilmar can tailor the composition and structure of whey proteins through distinct unit operations like ultrafiltration, microfiltration, ion exchange and enzymatic hydrolysis.
This specialization is guided by industry standards so that buyers, formulators and quality teams share a common language. The American Dairy Products Institute (ADPI) is widely recognized as the go to authority for dairy ingredients. ADPI’s ingredient standards define specifications and nomenclature for alignment across the dairy industry. The definitions and distinctions below reflect ADPI-aligned terminology used throughout the market.
The Big Three: Processing and Differences
Whey Protein Concentrate (WPC)
WPC is created through ultrafiltration, a process that selectively removes water and some of the non-protein components such as lactose and minerals, while retaining most of the protein. This results in a dry powder with a protein content of at least 25% protein. WPC 80 (80% protein) is the most common commercial grade for food and beverage formulation.
Because WPC retains more lactose and fat compared to isolates, it offers unique functional benefits. Its composition makes it an excellent choice for cost-sensitive fortification and for applications where texture, mouthfeel and dairy flavor notes are desirable.
Whey Protein Isolate (WPI)
These products contain minimal lactose (<1%) and fat (<1.5%) and reduced minerals. WPI typically has superior solubility and heat stability properties, critical for clear beverages and UHT processing.
The composition of WPI is remarkably clean, resulting in superior functional performance. WPI offers exceptional solubility, even in acidic environments, and heat stability, which is critical for applications such as clear protein beverages and UHT-processed ready-to-drink shakes. WPI is often used by formulators targeting premium sports nutrition, medical foods or low-lactose products.
Whey Protein Hydrolysate (WPH)
WPH begins as either WPC or WPI and is then enzymatically hydrolyzed, a process that breaks peptide bonds within the protein structure. This controlled hydrolysis significantly alters both the nutritional and functional properties of the protein. The degree of hydrolysis (DH) determines the extent of breakdown, resulting in a mixture of protein fragments of varying sizes—intact proteins, polypeptides, oligopeptides, dipeptides and even free amino acids.
These structural changes deliver key benefits: faster absorption, improved digestibility and unique functional behavior in formulations. WPH is particularly valuable in specialized applications such as infant formula, clinical nutrition and sports recovery products, where rapid uptake and reduced allergenicity are critical. However, formulators must manage sensory challenges such as bitterness, which can increase with higher degrees of hydrolysis.
Hilmar WPC Solutions
- Hilmar 8200 — 80% protein with heat stability and gelling properties in multiple food applications.
- Hilmar 8500 — lactose-free 80% protein with high solubility and acid soluble and stable for use in RTD and recovery beverages.
- Hilmar 7000 — 70% protein ideal for milk‑solid replacement and cost‑effective fortification.
- Hilmar 8000 — 80% protein for basic fortification in multiple food applications.
- Hilmar 8010 & 8011— 80% protein agglomerated and instantized with soy or sunflower lecithin for powdered dry mix applications.
Hilmar WPI Solutions
- Hilmar 9020 — 90% protein that is clear in solution with superior dispersibility, low foaming and excellent heat and acid stability: ideal for clear beverages, gels and protein waters.
- PROfunction Adapt — lactose‑free, fat‑free and heat stable; a versatile choice across beverages and functional foods.
- Hilmar 9000 — 90% protein that is heat stable, low foaming, low fat and lactose with a neutral flavor.
- Hilmar 9010 & 9011 —90% protein agglomerated and instantized with soy or sunflower lecithin for quick dispersion in cold water.
Hilmar WPH Solutions
- PROtelyze™ Advance — moderately hydrolyzed 80% protein for better bioavailability, heat stable, acid soluble and stable, and highly soluble with easy digestibility.
- Hilmar 8350 — moderately hydrolyzed 80% protein designed for infant applications, offering high digestibility and antioxidant benefits.
- Hilmar 8360 — moderately hydrolyzed 80% protein that is agglomerated and instantized with soy lecithin, providing high digestibility in powdered applications.
- Hilmar 8390 — 80% protein with a high degree of hydrolysis providing easy absorption, ideal for use in infant formula.
- PROtelyze™ for Bar — low-degree of hydrolysis, low lactose and fat, and clean flavor profile without hydrolysate sensory properties for nutrition bars. Also provides enhanced functionality benefits such as bar softening.
- PROtelyze™ for Powder — low-degree of hydrolysis, agglomerated and instantized with soy lecithin for dry mix applications with clean flavor and rapid dispersibility.
Hilmar Has You Covered
We understand that protein innovation is more than just supplying ingredients—it’s about enabling success in formulation, processing and market differentiation. Our portfolio of whey protein solutions spans concentrates, isolates and hydrolysates, each designed to meet precise performance requirements for solubility, clarity, heat stability, texture and nutritional profile.
We’d love to partner with you to solve formulation challenges, optimize processing conditions and accelerate product development. Whether you’re developing next-generation nutrition solutions or expanding into new categories, our whey protein technologies and application know-how help you stay ahead in a competitive landscape.