‘Gouda cheese’ is one of the most popular varieties of cheese eaten worldwide. The preservation problem of gouda arises due to microbial contamination and infestation. Therefore, essential oil (EO) based PVP-CMC-BC-GG hydrogel film was prepared to solve the problem and to extend the shelf-life of ‘Gouda cheese’. Anthocyanin (isolated from red cabbage) based pH stickers are integrated into the packaging system to recognize the spoilage of ‘cheese’. EOs (clove and/or cinnamon) are added to PVP-CMC-BC-GG hydrogel film to improve its antimicrobial, physical, mechanical, and thermal properties as well as shelf-life of cheese. The films are assessed based on their physical, structural, and functional properties, real-time assessment on cheese, and biodegradability. The results revealed that although the addition of oils to the PVP-CMC-BC-GG hydrogel films enhanced its mechanical, hydrophobic, and antimicrobial properties, the biodegradability of PVP-CMC-BC-GG films declined with the addition of EOs. The thermal properties remained the same irrespective of the addition of EOs. The shelf life of cheese was extended for more than 10–12 days, inside the PVP-CMC-BC-GG hydrogel sachet compared to the conventional PE packaging system. Hence the use of the PVP-CMC-BC-GG sachet (containing EO or without EO) is recommended for cheese packaging along with the use of PVP-CMC-BC-GG anthocyanin bio stickers for monitoring the quality of cheese.