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Philadelphia cream cheese has made a significant move into the plant-based dairy space by launching its plant-based spread in three flavors nationwide. The new spreads are made from a base of water, coconut oil, modified potato starch, and faba bean protein.
This launch comes after the brand’s successful regional introduction of a plant-based variation of the cream cheese spread in December, making it the first major brand in the U.S. to venture into the plant-based cream cheese market. Capitalizing on the growing demand for plant-based dairy alternatives, the Pittsburgh & Chicago-based company has introduced two new flavors: strawberry and onion and chive.
While traditional dairy products have long dominated the market, plant-based alternatives have been gaining traction in recent years. The U.S. market for plant-based dairy alternatives witnessed a notable 6% growth from 2020 to 2021 and further expanded by 11% from 2021 to 2022, according to a report from McKinsey.
Although the plant-based cream cheese space had a slow start, the entrance of Philadelphia with two new flavors indicates potential growth. Kraft Heinz, the company behind Philadelphia, recognizes the significance of being the first mainstream cream cheese brand to offer a plant-based spread option widely accessible across the U.S.
During the regional launch in the Southeast U.S., the plant-based version of Philadelphia cream cheese received positive feedback, with 70% of purchasers expressing that the product exceeded their expectations. Despite being available only in one region, Philadelphia already ranks as the fourth top-performing plant-based cream cheese in the Southeast and sixth nationwide.
Keenan White, senior brand manager of Philadelphia at the Kraft Heinz Company, expressed the importance of this milestone for the brand and its fans. With this expansion, Philadelphia continues to pave the way in the plant-based dairy market, catering to the evolving preferences of consumers seeking delicious and sustainable alternatives.