Table of Contents
Issues in the Market
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- Key themes
- Definitions
- The speciality market
- Abbreviations
Future Opportunities
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- Flavoured cheese opportunities
- Development of the ‘Occasion’ cheese
- Indulgence, but within reason
- Tapping into ‘homedulgence’
- Pressing nostalgic buttons
- Meal replacements
- Fortification of cheese to rejuvenate children’s market
Market in Brief
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- Cheese market worth in excess of £2 billion
- Penetration rate for cheese may have reached its peak
- Health concerns are a major issue...
- ...although other areas are also being addressed
- Dominant own-label faces ever present challenge from branded cheese
- Broad appeal for cheese
- Further innovation essential if market is to prosper
Internal Market Environment
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- Key points
- Cheese remains popular with adults
- Rising milk prices may hit sales
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- Figure 1: UK farmgate price of milk, 2003-08
- Rising health awareness is having impact on market
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- Figure 2: Agreement with selected statements about diet, 2004-08
- FSA campaign focused on saturated fat consumption
- Provenance emerging as an important factor
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- Figure 3: Agreement with selected statements about shopping, 2004-08
- Organic also important
- Economic slowdown results in down trading
- Cooking from scratch brings about opportunities
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- Figure 4: Agreement with selected statements about cooking, 2004-08
- Uses for cheese
- Savoury biscuit sales on the up...
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- Figure 5: Other products bought, by cheese eaters, 2008
- Lunch box opportunities less obvious
- Snacking opportunities are more positive
Broader Market Environment
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- Key points
- Increased affluence brings mixed message for the market
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- Figure 6: Forecast adult population trends, by socio-economic group, 2004-14
- Ageing population may hit heavy usage of cheese
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- Figure 7: Trends and projections in UK population, 2004-14
- FSA forces ban on children’s advertising...
- ...while focusing on better labelling
- EU origin legislation impinges on marketing
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- Figure 8: EU Protected Food Names Scheme
Competitive Context
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- Key points
- Cheese performs better than the dairy sector in general
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- Figure 9: UK retail value sales of dairy products, cheese and ham, 2004-09
- Sandwiches prove the most popular way of eating cheese
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Innovation sees strong interest from manufacturer brands...
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- Figure 10: New product launches – own-label vs. brands, 2006-08
- ...although own-label is significant in its own right
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- Figure 11: NPD by manufacturer, 2008
- Vegetarian claims up, with organic also seeing growth
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- Figure 12: New products, by leading positioning, 2006-08
- Key themes
- Lower fat cheeses enter the market
- Smaller packs in vogue
- Cheese flavours continue to attract interest
- Mature styles remain popular
- International flavours continue to enter market
Market Size and Forecast
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- Key points
- Growth in market value outstrips volume sales, but fails to keep pace with inflation
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- Figure 13: UK retail volume and value sales of cheese, at current and constant prices, 2004-14
- Figure 14: UK retail value sales of cheese and % annual growth, 2004-14
- Value market shows steady expansion
- Volume sales show more modest growth
- Prices move up although with pressure for price maintenance
- Soft cheese records best performance
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- Figure 15: UK retail value sales of cheese, by sector, 2004, 2006 and 2008
- Forecast
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- Figure 16: Indexed growth in volume and value sales of cheese, 2004-14
- Figure 17: Per capita consumption of cheese in the UK compared to France, Italy and Spain, 2009
- Factors used in the forecast
Segment Performance
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- Key points
- Cheddar still dominates, despite activity elsewhere in the market
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- Figure 18: UK retail value sales of cheese, by sector, 2004-14
- Cheddar builds on its success
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- Figure 19: UK retail value sales of Cheddar (incl extra mature, vintage and blue), by type, 2004-08
- Continental benefits from a broadening of tastes
- UK territorial sees renewed interest
- Processed suffers from health backlash
- Soft cheese emerges as the star performer
Market Share
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- Key points
- Retail own label makes a comeback as credit crunch hits consumers
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- Figure 20: Brands’ retail value shares in cheese, 2007-08
Companies and Products
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- Key points
- Manufacturers and brands
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- Figure 21: Leading companies and their brands in the cheese market
- Bel UK
- DairyCrest
- Kraft Foods Inc
- Lactalis McLelland
- North Downs Dairy Co. Ltd
- Wyke Farms
Brand Communication and Promotion
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- Key points
- Interest in promoting cheese remains high
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- Figure 22: Main monitored media advertising spend on cheese, 2004-08
- Big brands dominate
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- Figure 23: Main monitored media spend by brand, 2006-08
- Television is the preferred choice for advertisers
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- Figure 24: Main monitored media advertising expenditure on cheese, by media type, 2004-08
Channels to Market
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- Key points
- Supermarkets dominate market
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- Figure 25: UK retail value sales of cheese, by outlet type, 2006-08
- Big four capture around two thirds of sales
- Other outlets continue to prosper – just
- Discounters offer a new level of competition
The Consumer – Usage
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- Key points
- Overall consumption is holding up well
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- Figure 26: Trends in consumption of cheese in the last 12 months, 2004-08
- Women find cheese more appealing
- Young adults prefer packaged cheese...
- ...with social differences in the way cheese is purchased
- Families with children represent an important market
- Consumption rates in major cities appears lower
- Territorial cheeses benefit in a sluggish market
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- Figure 27: Variety of cheese (in blocks) eaten in the last 12 months, 2004-08
- Is Britain going soft?
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- Figure 28: Type of packed cheese eaten in the last 12 months, 2004-08
The Consumer – Attitudes
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- Key points
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- Figure 29: Most popular ways to eat or serve cheese, January 2009
- Women have a greater influence over the use of cheese
- Older and younger consumers have different uses for cheese
- Socio-economic status has limited impact
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- Figure 30: Most important factors driving purchase of cheese, January 2009
- Men look for added value from their cheese
- Older customers are most likely to be adventurous
- Can Londoners and Scots act as early adopters for innovations?
- ABs show most interest in health and environmental issues
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- Figure 31: Words or phrases associated with cheese, January 2009
The Consumer – Further Analysis
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- Key points
- Opportunities for developing cheese market lies with key consumer segments
- Salads centred round low-fat cheeses
- Mild and inexpensive for children’s packed lunches
- Gourmet positioning for the cheese board
- Fewer than one in ten choosing organic cheese
- Consumer views toward cheese influence its use
- One in two serve cheese in at least 7 different ways
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- Figure 32: Number of ways in which cheese is used or served, January 2009
- Potential to increase usage with the young
- The older and more affluent serve cheese in the most varied ways
- Attributes of cheese
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- Figure 33: Number of positive factors relating to cheese, January 2009
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- Figure 34: Number of negative factors relating to cheese, January 2009
- Cheese target groups
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- Figure 35: Target groups for cheese, January 2009
- Group 1: Cheese Stockists
- Group 2: Cheese Crazy
- Group 3: Disengaged
- Group 4: Just a treat
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- Figure 36: Number of ways of serving cheese, by target groups, January 2009
Appendix – Internal Market Environment
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- Figure 37: Which, if any, of these statements describe your eating habits? Please choose all that apply, January 2009
- Figure 38: Which, if any, of these statements describe your eating habits? Please choose all that apply January 2009 (contd)
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- Figure 39: Trend in consumption of savoury biscuits in the last 12 months, 2004-08
- Figure 40: Consumption of pickles, chutney and relish in the last 12 months, 2004-08
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Appendix – Who’s Innovating?
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- Figure 41: Product launch, by segmentation, 2006-08
- Figure 42: NPD by manufacturer, 2008
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Appendix – The Consumer – Usage
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- Figure 43: Consumption of cheese (block or packeted) in the last 12 months, by detailed demographics, 2008
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- Figure 44: Consumption of cheese (in blocks) in the last 12 months, by detailed demographics, 2008
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- Figure 45: Consumption of packeted cheese in the last 12 months, by detailed demographics, 2008
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Appendix – The Consumer – Attitudes
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- Figure 46: In which, if any, of these ways do you tend to eat or serve cheese? Please choose all that apply, January 2009
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- Figure 47: In which, if any, of these ways do you tend to eat or serve cheese? Please choose all that apply, January 2009 (contd)
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- Figure 48: Which of the following factors, if any, are important to you when buying cheese? Please choose all that apply, January 2009
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- Figure 49: Which of the following factors, if any, are important to you when buying cheese? Please choose all that apply, January 2009 (contd)
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- Figure 50: Which of the following words/phrases, if any, do you associate with cheese?, January 2009
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- Figure 51: Which of the following words/phrases, if any, do you associate with cheese?, January 2009 (contd)
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Appendix – The Consumer – Further Analysis
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- Figure 52: Which of the following factors, if any, are important to you when buying cheese?, January 2009
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- Figure 53: Which of the following factors, if any, are important to you when buying cheese?, January 2009
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- Figure 54: Which of the following words/phrases, if any, do you associate with cheese?, January 2009
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- Figure 55: Which of the following words/phrases, if any, do you associate with cheese?, January 2009
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- Figure 56: In which, if any, of these ways do you tend to eat or serve cheese?, January 2009
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- Figure 57: In which, if any, of these ways do you tend to eat or serve cheese?, January 2009
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- Figure 58: Which of the following factors, if any, are important to you when buying cheese?, January 2009
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- Figure 59: Which of the following factors, if any, are important to you when buying cheese?, January 2009
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- Figure 60: Which of the following words/phrases, if any, do you associate with cheese?, January 2009
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- Figure 61: Which of the following words/phrases, if any, do you associate with cheese?, January 2009
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- Figure 62: In which, if any, of these ways do you tend to eat or serve cheese?, January 2009
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- Figure 63: In which, if any, of these ways do you tend to eat or serve cheese?, January 2009
- Ways of serving cheese
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- Figure 64: The number of ways that people tend to serve cheese, January 2009
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- Figure 65: The number of ways that people tend to serve cheese, by detailed demographics, January 2009
- Attributes of cheese
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- Figure 66: Number of positive words relating to cheese, January 2009
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- Figure 67: Number of positive words associated with cheese, by detailed demographics, January 2009
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- Figure 68: Number of negative factors relating to cheese, January 2009
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- Figure 69: Number of negative factors relating to cheese, by detailed demographics, January 2009
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- Figure 70: Number of positve factors relating to cheese, by factors influencing purchase of cheese, January 2009
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- Figure 71: Number of negative factors relating to cheese, by factors influencing purchase of cheese, January 2009
- Target groups
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- Figure 72: Ways of serving cheese, by target groups, January 2009
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- Figure 73: Factors influencing purchase of cheese, by target groups, January 2009
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- Figure 74: Target groups, by detailed demographics, January 2009
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