Table of Contents
Executive Summary
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- Impact of COVID-19 on cheese
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on cheese, 29 October 2020
- The market
- COVID-19 provides a boost to the cheese category
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- Figure 2: UK retail value sales of cheese (COVID-19-adjusted forecast), 2015-25
- Downturn will limit sales growth in 2021
- Cheddar retains lead on the back of sales growth; recipe cheese receives boost from the accelerated cooking trend
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- Figure 3: Share of UK retail value sales of cheese, by type, 2020 (est)
- Spending power will be challenged
- Ageing of the population should boost cheese
- Companies and brands
- Own-label cheese benefits from stocks and value positioning
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- Figure 4: Leading brands’ shares in the UK cheese market, by value, 2019/20*
- Cathedral City continues brand dominance; Pilgrims Choice sees strongest volume growth
- Own-labels continue to step up innovation; Lactalis targets hot cheese occasion
- Cheesemakers look to cater to environmental/ethical concerns
- Adspend drops in 2020; Bel is the biggest spender
- Cathedral City leads on trust; Strings & Things on fun
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- Figure 5: Attitudes towards and usage of selected brands, September 2020
- The consumer
- 91% eat cheese, 9% daily
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- Figure 6: Frequency of eating cheese, July 2020
- Cheddar remains the most popular cheese, bought by 73%
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- Figure 7: Types of cheese bought, July 2020
- Supermarkets are the most popular place to buy cheese; opportunities for DTC
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- Figure 8: Where cheese is bought, July 2020
- Taste is top factor, healthiness has little sway
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- Figure 9: Factors influencing choice, July 2020
- British-made cheese outranks favourite brand cheese for paying more
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- Figure 10: Reasons to pay more for cheese, July 2020
- Versatility is key; 85% like that cheese can be used in a variety of ways
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- Figure 11: Behaviours related to cheese, July 2020
- Cheese should be positioned as a better-for-you snack
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- Figure 12: Attitudes towards cheese, July 2020
Issues and Insights
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- Cheese should be positioned as a better-for-you snack; with health a priority in the wake of COVID-19
- Opportunity for greater variety of British cheeses
- Pushing the versatility of cheese should keep consumers buying
- Steps towards greener packaging can win favour
The Market – Key Takeaways
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- COVID-19 provides a boost to the cheese category
- Downturn will limit sales growth in 2021
- Cheddar retains lead on the back of sales growth; recipe cheese receives boost from the accelerated cooking trend
- Spending power will be challenged
- Ageing of the population should boost cheese
Market Size and Forecast
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- Impact of COVID-19 on cheese
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- Figure 13: Short-, medium- and long-term impact of COVID-19 on cheese, 29 October 2020
- COVID-19 provides a boost to the cheese category
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- Figure 14: UK retail value and volume sales of cheese, 2015-25
- Sales to fall over 2020-25
- Brexit and ongoing COVID-19 situation to affect sales in 2021
- Shift towards wider at-home working to provide some, though finite, support to volume sales
- Ageing UK population to buoy up volume sales
- Income squeeze will limit sales growth in 2021
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- Figure 15: UK retail value sales of cheese (COVID-19-adjusted forecast), 2015-25
- Figure 16: UK retail volume sales of cheese (COVID-19-adjusted forecast), 2015-25
- Market drivers and assumptions
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- Figure 17: Key drivers affecting Mintel’s market forecast, 2015-24 (prepared on 21 October 2020)
- Learnings from the last recession
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- Figure 18: UK retail value sales of cheese, 2008-12
- Forecast methodology
Market Segmentation
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- Cheddar retains lead on the back of sales growth
- Recipe cheese receives boost from the revived cooking trend
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- Figure 19: UK retail value and volume sales of cheese, by type, 2018-20
Market Drivers
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- Little movement in mild cheddar prices in 2020
- Brexit trade deal uncertainty shadows 2021
- Spending power will be challenged
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- Figure 20: Annual percentage change in CPI and AWE (regular pay), monthly basis, January 2015-July 2020
- Figure 21: Trends in how respondents would describe their financial situation, January 2015-September 2020
- Ageing population will support cheese
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- Figure 22: Trends in the age structure of the UK population, 2015-20 and 2020-25
- Anti-obesity push could hit cheese
Companies and Brands – Key Takeaways
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- Own-label cheese benefits from stocks and value positioning
- Cathedral City continues brand dominance; Pilgrims Choice sees strongest volume growth
- Own-labels continue to step up innovation; Lactalis targets hot cheese occasion
- Cheesemakers team up with TerraCycle to recycle packaging
- Adspend drops in 2020, Bel is the biggest spender
- Cathedral City leads on trust; Strings & Things on fun
Market Share
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- Own-label cheese benefits from stocks and value positioning
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- Figure 23: Leading brands in the UK cheese market, by value and volume, 2018/19 and 2019/20
- Cathedral City continues brand dominance
- Other leading cheddar brand Pilgrims Choice sees strongest volume growth
- Snacking brands fail to grow values
Launch Activity and Innovation
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- Own-labels continue to step up innovation
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- Figure 24: Share of new product launches in the cheese market, by own-label vs branded, 2016-20
- Sainsbury’s leads NPD in 2019
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- Figure 25: Share of new product launches in the cheese market, by top 10 companies (sorted by 2019), 2016-20
- Morrisons steps up activity in 2020
- Other retailers focus on premiumisation
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- Figure 26: Share of new product launches in the cheese market, by premium claim, 2016-20
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- Figure 27: Examples of NPD by own-labels, 2020
- Referencing provenance and production methods to denote quality
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- Figure 28: Examples of NPD referencing production methods or provenance, 2020
- Saputo withdraws Cathedral City 82
- Reduced fat claims rise in 2020
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- Figure 29: An example of NPD with a reduced fat claim, 2020
- Brands look to extensions to expand their reach
- Lactalis’ Seriously introduces nuggets and triangles…
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- Figure 30: Seriously moves into triangles, 2020
- …and Président moves into hot cheese with Brie Bakes
- Butlers launches Easter eggs to tap into new treat occasions
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- Figure 31: Cheesemakers tap into seasonal occasions, 2019 and 2020
- Yeo Valley enters cheese market with organic variant
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- Figure 32: Yeo Valley enters cheese market with cheddar launch, 2020
- Flavour NPD is another way to extend a brand
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- Figure 33: Examples of NPD focusing on new flavours, 2020
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- Figure 34: Examples of NPD focusing on milder flavours, 2020
- Cheesemakers look to cater to environmental/ethical concerns
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- Figure 35: Examples of NPD focusing on environmentally friendly packaging, 2019-20
- Cathedral City and Babybel partner with TerraCycle
- Butlers launches recyclable cheeseboard
Advertising and Marketing Activity
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- Adspend drops in January-August 2020
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- Figure 36: Total above-the-line, online display and direct mail advertising expenditure on cheese, by month, January 2019-August 2020
- Bel remains top spender
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- Figure 37: Total above-the-line, online display and direct mail advertising expenditure on cheese, by top advertisers, 2019 and 2020 (sorted by 2019)
- Babybel encourages people to Join the Goodness
- Mini Babybel tackles lockdown boredom
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- Figure 38: Total above-the-line, online display and direct mail advertising expenditure on cheese, by top brands, 2019 and 2020 (sorted by 2019)
- Cathedral City creates COVID-19 lockdown advert
- Philadelphia Light partners with Davina McCall
- Violife demonstrates cheesy moments, but vegan
- Galbani continues sponsorship of Come Dine with Me, Boursin collaborates with Honest Burger
- Castello wants people to feed their senses
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 39: Attitudes towards and usage of selected brands, September 2020
- Key brand metrics
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- Figure 40: Key metrics for selected brands, September 2020
- Brand attitudes: Violife rivals Philadelphia for perceived innovativeness
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- Figure 41: Attitudes, by brand, September 2020
- Brand personality: Strings & Things leads the group for fun
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- Figure 42: Brand personality – Macro image, September 2020
- Cathedral City and Président seen as most authentic in the group
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- Figure 43: Brand personality – Micro image, September 2020
- Brand analysis
- Cathedral City seen as most trustworthy
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- Figure 44: User profile of Cathedral City, September 2020
- Philadelphia holds joint lead as accessible
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- Figure 45: User profile of Philadelphia, September 2020
- Président is seen as the most special
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- Figure 46: User profile of Président, September 2020
- Seriously holds its own on deliciousness
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- Figure 47: User profile of Seriously, September 2020
- Violife enjoys shared lead as innovative
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- Figure 48: User profile of Violife, September 2020
- Strings & Things is seen most widely as fun
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- Figure 49: User profile of Strings & Things, September 2020
The Consumer – Key Takeaways
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- Long-term homeworking trend provides opportunities for cheese
- Income squeeze will heighten focus on price
- British-made cheese outranks favourite brand cheese for paying more
- Versatility is key; 85% like that cheese can be used in a variety of ways
- Cheese should be positioned as a better-for-you snack
Impact of COVID-19 on Consumer Behaviour
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- Long-term homeworking trend provides opportunities for category
- Income squeeze will heighten focus on price
- Pandemic brings health into even greater focus
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- Figure 50: Consumers concerned about putting on weight and unhealthy eating as a result of the coronavirus outbreak, by gender and age, 23 April-7 May 2020
- Environmental concerns predicted to become more prevalent
Usage of Cheese
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- 91% eat cheese, 9% daily
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- Figure 51: Frequency of eating cheese, July 2020
Types of Cheese Bought
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- Cheddar remains the most popular cheese, bought by 73%
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- Figure 52: Types of cheese bought, July 2020
- Women, over-55s and higher earners have the widest cheese repertoires
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- Figure 53: Repertoire of types of cheese bought, July 2020
Where Cheese Is Bought
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- Supermarkets are the most popular place to buy cheese
- Consumers look to alternative channels; providing opportunities for DTC
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- Figure 54: Where cheese is bought, July 2020
Factors Influencing Choice
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- Taste is top factor, healthiness has little sway
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- Figure 55: Factors influencing choice, July 2020
- Income squeeze will heighten focus on price
Reasons to Pay More for Cheese
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- British-made cheese outranks favourite brand cheese for paying more
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- Figure 56: Reasons to pay more for cheese, July 2020
- A desire to pay farmers more reported by 25%
- Cheese that is high in nutrients appeals to the young
- Cheese is seen widely as a good source of protein
- Vegan cheeses call out Vitamin B12 content
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- Figure 57: Examples of cheese launches calling out vitamin content, 2020
Behaviours Related to Cheese
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- Versatility is key; 85% like that cheese can be used in a variety of ways
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- Figure 58: Behaviours related to cheese, July 2020
- Using their own containers for cheese appeals to 35%; 43% among 16-34s
- Public spotlight on plastic
- Steps towards greener packaging can win favour
- Plant-based cheese could tap into consumers’ desire to reduce meat consumption
Attitudes towards Cheese
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- Cheese should be positioned as a better-for-you snack
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- Figure 59: Attitudes towards cheese, July 2020
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- Figure 60: Those agreeing with the statement “Cheese is a satisfying snack on its own”, by age, July 2020
- Opportunity for greater variety of British cheeses
- Economic uncertainty drives local appeal
- Strong demand for more British cheeses
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Share
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- Figure 61: Leading manufacturers in the UK cheese market, by value and volume, 2018/19 and 2019/20
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Appendix – Launch Activity and Innovation
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- Figure 62: Share of new product launches in the cheese market, by sub-category, 2016-20
- Figure 63: Share of new product launches in the cheese market, by launch type, 2016-20
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- Figure 64: Share of new product launches in the cheese market, by claim category, 2016-20
- Figure 65: Share of new product launches in the cheese market, by top 20 claims, 2016-20 (sorted by 2019)
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