Philadelphia gains US market share as cream cheese consumption falls
US cottage cheese sales exceeded $2bn in 2025, with sales value rising by 19.2% and volume increasing by 13.9%, according to Circana. The category has attracted younger buyers and introduced different product formats. Challenger brands have contributed to its expansion, while social media has also supported demand. These developments accompany a broader shift towards protein-focused products within the dairy market.
Cognitive Market Research forecasts a compound annual growth rate of 6% for cottage cheese globally. North America is the largest regional market, ahead of Europe and Asia Pacific. The category’s growth and changes in its product offering provide the backdrop to the competitive pressures that Cahillane described during Kraft Heinz’s third-quarter earnings call.
Cahillane said Philadelphia’s pricing changes had contributed to deflation in the cream cheese category and that the company was adjusting its approach. He called for greater innovation in protein, flavours and the overall product offering to reflect consumer preferences. In his assessment, Philadelphia remained a strong brand, while the wider category faced pressure as buyers moved towards alternatives. Addressing those shifts would take some time, he said.
Philadelphia has introduced a lactose-free cream cheese in the United States and is extending its distribution. Its recent US flavour additions include a whipped cream cheese featuring Mike’s Hot Honey, alongside salted caramel and a seasonal cranberry orange variety. Those launches form part of the brand’s efforts to broaden its range in response to changing consumer demand.
Kraft Heinz distributes Philadelphia in North America, while Mondelez owns and manages the brand in Europe and other international markets. Kraft Heinz, one of the largest global food and beverage businesses, recorded approximately $25bn in net sales during 2025. Consumers in more than 40 countries buy products from its portfolio of brands.
In a separate announcement, Kraft Heinz disclosed that it is selling its North American coffee business for $650m. The company will retain a 30% equity holding in that business, with the retained interest carrying no controlling stake.
