Table of Contents
Executive Summary
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- The market
- Cheese volumes expected to grow 1% in 2015
- Cheese prices forecast to rise more slowly in 2015-20
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- Figure 1: Retail value sales of the UK cheese market, 2010-20
- Cheddar’s value share of the cheese market is expected to shrink
- Recipe cheese generates the fastest volume growth
- Territorial cheeses gain greater visibility
- UK wholesale price of mild cheddar falls 25% in a year
- Rising real incomes may fuel value sales of cheese
- Accelerating growth of the over-55s age group should benefit cheese
- Companies and brands
- Sales of own-label cheese buck the downward trend
- Cathedral City is the only top five brand to post marked volume growth
- Anchor becomes a £30 million cheese brand in just over two years
- 13% of new launches in 2014 had a seasonal positioning
- Cheesemakers and retailers tap into burger mania
- The consumer
- Cheese is bought by nine in 10 consumers
- Cheddar is purchased by four fifths of Brits
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- Figure 2: Purchase of cheese, by type, 2012-15
- Discounters are a substantial threat to brands’ cheese sales
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- Figure 3: Channels used to buy cheese, July 2015
- One in six cheese buyers are buying less block cheese
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- Figure 4: Cheese buying behaviours, July 2015
- Cheddar is seen as good for special occasions by only a minority
- Half of consumers interested in recipes using cheese in unusual ways
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- Figure 5: Attitudes towards cheese, July 2015
- Strong interest in healthy cheese snacks
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- Figure 6: Consumer preferences for cheese snacks, July 2015
- What we think
Issues and Insights
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- Cheddar sales are in value decline
- The facts
- The implications
- Greater scope for brands to capitalise on the use of cheese in cooking
- The facts
- The implications
- Under-35s are less likely to buy cheddar
- The facts
- The implications
The Market – What You Need to Know
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- Cheese volumes expected to rise ahead of value in 2015
- Cheddar’s share of cheese is expected to shrink
- Recipe cheese generates the fastest volume growth
- Territorial cheeses gain greater visibility
- Cheese prices forecast to rise more slowly in 2015-20
- UK wholesale price of mild cheddar falls 25% in a year
- Accelerating growth of the over-55s age group should benefit cheese
Market Size and Forecast
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- Increase in cheese volumes and marginal rise in value expected in 2015
- Slower value growth but faster volume growth expected in 2015-20
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- Figure 7: Retail value and volume sales of the UK cheese market, 2010-20
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- Figure 8: Retail value sales of the UK cheese market, 2010-20
- Figure 9: Retail volume sales of the UK cheese market, 2010-20
Segment Performance
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- Cheddar’s share of cheese is expected to shrink
- Recipe cheese generates the fastest volume growth
- Territorial cheeses gain greater visibility
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- Figure 10: UK retail sales of cheese, by type, 2013-15
- Full-flavoured and farmhouse cheddars struggle
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- Figure 11: UK retail sales of cheddar, by type, 2013-15
Market Drivers
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- UK wholesale price of mild cheddar falls 25% in a year
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- Figure 12: UK wholesale prices of mild cheddar, January 2010-September 2015
- Figure 13: Consumer Price Index of cheese, January 2010-August 2015
- Smaller cheddar brands struggle to compete
- Rising real incomes may fuel value sales of cheese
- Accelerating growth of the over-55s age group should benefit cheese
- Changing bread eating habits could hamper purchases of cheese
Key Players – What You Need to Know
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- Own-label cheese sales buck the downward trend
- Cathedral City is the only top five brand to post marked volume growth
- Anchor becomes a £30 million cheese brand in just over two years
- 13% of new launches in 2014 had a seasonal positioning
- Cheesemakers and retailers tap into burger mania
- Slight increase in 2014 adspend
Market Share
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- Own-label bucks the downward trend
- Cathedral City is the only top five brand to post marked volume growth
- Lidl campaign highlights price difference between Cathedral City and Lidl private-label cheddar
- Anchor becomes a £30 million cheese brand in just over two years
- A new cheddar brand enters the fray
- Seriously Strong aligns its portfolio more closely with rivals
- Dairylea sales decline as price hikes bite
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- Figure 14: Leading brands in the UK cheese market, by value and volume, 2012/13-2014/15
- Figure 15: Leading manufacturers in the UK cheese market, by value and volume, 2012/13-2014/15
Launch Activity and Innovation
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- Brands gain highest share of new launches in four years
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- Figure 16: New product launches in the cheese market, by private label and brands, 2011-15
- Retailers make up four in five top companies by cheese launches in 2014
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- Figure 17: New product launches in the UK cheese market, by top 10 companies, 2011-15
- 13% of new launches in 2014 had a seasonal positioning
- Bel offers a point of difference through seasonal packaging
- Primula drives increase in charity claims in 2014
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- Figure 18: New product launches in the UK cheese market, by top 10 claims, 2011-15
- Operators target kids with cheese shapes
- Cheesemakers and retailers tap into burger mania
- 2015 sees a flurry of whipped cream cheese launches
- Could cheese curds go mainstream in the UK market?
Brand Communication and Promotion
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- Slight increase in 2014 adspend
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- Figure 19: Recorded above-the-line, online display and direct mail total advertising expenditure on cheese, 2011-15
- Cheddar sees 50% increase in adspend as Anchor enters the fray
- Cheddar’s adspend-to-sales ratio is low
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- Figure 20: Recorded above-the-line, online display and direct mail total advertising expenditure on cheese, by product type, 2011-15
- Cathedral City links up with McCain for jacket potato cross-promo
- Wyke Farms and Seriously Strong campaigns play on their provenance
- Mondelēz spends big on pushing the taste credentials of Philadelphia
- Cheestrings launches on-pack Star Wars promotion
- British Cheeseboard launches kids’ lunchbox generic campaign
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- Figure 21: Recorded above-the-line, online display and direct mail total advertising expenditure on cheese, by top five advertisers, 2011-15
- Figure 22: Recorded above-the-line, online display and direct mail total advertising expenditure on cheese, by top five brands, 2011-15
Brand Research
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- What you need to know
- Brand map
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- Figure 23: Attitudes towards and usage of selected cheese brands, August 2015
- Key brand metrics
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- Figure 24: Key metrics for selected cheese brands, August 2015
- Brand attitudes: Cathedral City and Philadelphia seen most widely as having a good reputation
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- Figure 25: Attitudes, by cheese brand, August 2015
- Brand personality: Pilgrims Choice falls down on engagement and vibrancy
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- Figure 26: Brand personality – Macro image, August 2015
- Dairylea and The Laughing Cow are strong on family but weak on indulgence
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- Figure 27: Brand personality – Micro image, August 2015
- Brand analysis
- Cathedral City
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- Figure 28: User profile of Cathedral City, August 2015
- Seriously Strong
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- Figure 29: User profile of Seriously Strong, August 2015
- Philadelphia
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- Figure 30: User profile of Philadelphia, August 2015
- Pilgrims Choice
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- Figure 31: User profile of Pilgrims Choice, August 2015
- The Laughing Cow
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- Figure 32: User profile of The Laughing Cow, August 2015
- Dairylea
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- Figure 33: User profile of Dairylea, August 2015
The Consumer – What You Need to Know
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- Cheese is bought by nine in 10 consumers
- Cheddar purchased by four fifths of Brits
- Discounters are a substantial threat to brands’ cheese sales
- Changes in cheese formats purchased
- Half of consumers interested in recipes using cheese in unusual ways
- Cheddar is seen as good for special occasions by only a minority
- Strong interest in healthy cheese snacks
Cheese Purchase Habits
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- Cheese is bought by nine in 10 consumers
- Cheddar purchased by four fifths of Brits
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- Figure 34: Purchase of cheese, by type, 2012-15
- Supermarkets are top channel for buying cheddar and continental cheeses
- Discounters are a substantial threat to brands’ cheese sales
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- Figure 35: Channels used to buy cheese, July 2015
Cheese Buying Behaviours
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- Offers sway two in five cheese buyers
- One in six are buying more lighter cheeses than a year ago
- One in six cheese buyers are buying less block cheese
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- Figure 36: Cheese buying behaviours, July 2015
Attitudes towards Cheese
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- Cheddar is widely seen as suited for cooking
- Half of consumers interested in recipes using cheese in unusual ways
- One in four interested in cheese-flavoured mayonnaise
- Premium flavoured block cheddars
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- Figure 37: Attitudes towards cheese, July 2015
Qualities Associated with Cheese
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- Few see any cheese type as boring
- Cheddar is seen as good for special occasions by only a minority
- Few see cream cheese as good for special occasions
- Cream cheese could provide a positive halo effect for spreadable cheese
- Cheeses other than cheddar are losing out when it comes to cooking
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- Figure 38: Qualities associated with selected cheese types, July 2015
Consumer Preferences for Cheese Snacks
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- Brands continue to innovate in snacking products
- Strong interest in healthy cheese snacks
- A gap in the market for flavoured cheese snacks
- Cheddar is king
- International markets provide inspiration for cheese snack packaging
- The cost of cheese snack packs could be prohibitive to many
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- Figure 39: Consumer preferences for cheese snacks, July 2015
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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- Figure 40: Best- and worst-case forecasts for the UK cheese market, by value
- Figure 41: Best- and worst-case forecasts for the UK cheese market, by volume
Appendix – Market Drivers
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- Figure 42: Trends in the age structure of the UK population, 2010-20
- Figure 43: Trends in the age structure of the UK population, 2010-15 and 2015-20
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