Cottage Cheese Takes Share From Philadelphia Cream Cheese

Kraft Heinz says rising protein-focused demand for cottage cheese is pulling sales away from its Philadelphia brand.

Updated on Nov. 6, 2026 in Consumer Goods

Two plain white ceramic bowls on a wooden countertop, one with cottage cheese curds and one with a block of cream cheese, beside hard-boiled eggs in a bright kitchen. — Kraft Heinz said Wednesday that its Philadelphia cream cheese brand is losing ground as U.S. cottage cheese sales rose 17.7% to about $2.32 billion. AI Illustration. Upload story photo >

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Kraft Heinz said Wednesday that its Philadelphia Cream Cheese brand is falling behind as protein-focused demand grows for cottage cheese. U.S. cottage cheese sales rose 17.7% to around $2.32 billion for the 52-week period ended Oct. 4, while cream cheese sales fell 4.4% to around $2.88 billion.

Why it matters

The shift shows consumer demand moving toward high-protein foods, with cottage cheese now used as a spread and in recipes for eggs and ice cream. For Kraft Heinz, whose sales fell 2% in the third quarter, the trend poses a competitive challenge to a brand that holds most of the U.S. cream cheese market.

U.S. cottage cheese sales rose 17.7% to around $2.32 billion for the 52 weeks ended Oct. 4, more than double 2021 levels. Over the same period, cream cheese sales fell 4.4% to around $2.88 billion, while Kraft Heinz's overall sales dropped 2% in the third quarter.

The players

Kraft Heinz

A major American packaged food company that owns the Philadelphia cream cheese brand and reported a 2% sales decline in the third quarter.

Cahillane

Kraft Heinz executive who said addressing the category pressure from cottage cheese will take some time.

The details

Cottage cheese has gained popularity after going viral on TikTok through cooking videos, and consumers are using it as a spread and in recipes for scrambled eggs and ice cream. Demand is being driven by the protein craze and social-media content, and the use of GLP-1 weight-loss drugs has also played a role.

Oct. 4: End of the 52-week period covered by the sales data
October: Class II milk priced at $19.15 per hundredweight
Wednesday, Nov. 4: Kraft Heinz discloses losses to cottage cheese on its earnings call

Market Landscape

Cottage cheese's sales more than doubling since 2021 shows how the protein craze is reshaping dairy categories that legacy brands once dominated. The pressure now reaches Philadelphia, which held roughly 62% of the U.S. spreadable cheese market last year, while smaller players like Good Culture have nearly quadrupled sales in three years.

Shoppers may see cottage cheese occupying more shelf space and appearing in more recipes as demand grows. Cream cheese buyers could see fewer promotional offers as Kraft Heinz works to address the category pressure.

The takeaway

Protein-focused eating is moving beyond supplements into everyday staples, and shoppers comparing dairy options may find cottage cheese a versatile alternative to cream cheese in cooking and spreads. Watching how legacy brands respond will show whether this shift is lasting.