Key findings
- 1Pre-shredded cheese contains cellulose powder (wood pulp), potato starch, and natamycin that block cheese does not
- 2The anti-caking agents are why shredded cheese melts poorly compared to freshly grated block cheese, the coatings form a barrier between cheese and heat
- 3Cellulose content in shredded cheese is typically 2-4% by weight, though some budget brands have been found exceeding labeled amounts
Why is Shredded Cheese Level 2 on average?
Block cheddar and pre-shredded cheddar start as the same cheese, but the shredding step introduces a problem: moist cheese surfaces stick together. The industry solution is coating each shred with anti-caking agents. Cellulose powder (refined from wood pulp through an acid-alkali process) is the most common, typically at 2-4% by weight. Potato starch and natamycin (an antifungal mold inhibitor) are also standard. These coatings are why pre-shredded cheese never melts as smoothly as block cheese you shred yourself; the starch and cellulose create a barrier that interferes with proper protein flow during heating. In our analysis, shredded cheese averages a Processing Score of 4.3, which is Level 2.
How 2,245 shredded cheese products break down
Share of products at each processing level, in our analysis.
Shredded Cheese brand comparison
From least to most processed in our database.
How to read a shredded cheese label
- 1
Block cheese of the same brand typically has a few fewer ingredients than the shredded version
- 2
Cellulose is listed as "cellulose powder" or "powdered cellulose", and it is refined wood pulp used as an anti-caking agent
- 3
Natamycin is an antifungal added to prevent mold growth on the high-surface-area shreds
- 4
For better melting and fewer additives, buy block cheese and shred it yourself
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Frequently asked questions
Is there really wood pulp in shredded cheese?
Yes. Cellulose powder, derived from wood pulp through chemical processing, is used as an anti-caking agent in virtually all pre-shredded cheese. It is FDA-approved and considered safe, but it is not a traditional cheese ingredient.
Why doesn't shredded cheese melt well?
The cellulose and starch coatings that prevent clumping also create a barrier during melting. These anti-caking agents absorb moisture and interfere with the smooth flow of melted cheese protein. Block cheese you grate yourself melts significantly better.
Is shredded cheese bad for you?
The anti-caking agents (cellulose, potato starch) are FDA-approved and present in small amounts. The processing difference from block cheese is moderate. The practical difference is a few additives, not a dramatic health risk.
Guide · Dairy & Alternatives
The Complete Dairy & Alternatives Guide
Processing analysis, least-processed picks, and what to watch for.
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