Cheese - Ireland - May 2017

OVERVIEW
What you need to know
Issues covered in this Report
EXECUTIVE SUMMARY
The market
Figure 1: Estimated retail sales of cheese, RoI and NI, 2012-17
Figure 2: Estimated value of the RoI specialty cheese market vs. all other cheese, RoI, 2017
Forecast
Figure 3: Indexed estimated retail sales of cheese, RoI and NI, 2012-22
Market factors
Cheese prices increase in NI, but continue to fall in RoI
Failure to achieve Brexit deal could see cheese tariffs
RoI consumers more confident about their economic future
Full-fat cheese does not increase heart attack risk
Very strong increase in cheese products with protein claims
Companies and innovations
The consumer
Four in five consumers bought cheddar
Figure 4: Types of cheese that consumers have bought for themselves or others in the last three months, NI and RoI, February 2017
Sandwiches and toast key cheese occasions
Figure 5: Ways that consumers have used/ eaten cheese in the last three months, NI and RoI, February 2017
Consumers see cheese as protein source
Figure 6: Agreement with statements related to cheese, NI and RoI, February 2017
THE MARKET – WHAT YOU NEED TO KNOW
Cheese market grows in 2017 despite Brexit setback
Cheese prices decline in RoI, but increase in NI/UK
Failure to achieve Brexit deal could see cheese tariffs
RoI consumers more confident about their economic future
Full-fat cheese may not be so bad for you
Protein continuing to be a key trend
MARKET SIZE AND FORECAST
Brexit referendum stalls growth in NI
Figure 7: Estimated retail sales of cheese, IoI, RoI and NI, 2012-22
RoI sees strong year-on-year growth in cheese value
Figure 8: Indexed estimated retail sales of cheese, RoI and NI, 2012-22
Specialty cheese continues to grow in value
Figure 9: Estimated value of the RoI specialty cheese market, RoI, 2012-17
MARKET DRIVERS
RoI cheese prices continue to decline
Figure 10: Consumer price indices of cheese and curd, RoI, March 2012-April 2017
Q1 sees cheese prices in UK/NI increase
Figure 11: Consumer price indices of cheese and curd, UK (including NI), Q1 2015 -Q1 2017
Brexit could affect dairy market on both sides of the border
Higher economic confidence in RoI could be beneficial to cheese sales
Figure 12: How consumers think the general economic condition of the country will change over the next 12 months, NI and RoI, April 2017
Figure 13: How consumers think their own personal financial situation will change over the next 12 months, NI and RoI, April 2017
Delis ideal channel for targeting specialist cheese at RoI consumers
Figure 14: Selected types of food specialists/artisan retailers visited in the last three months, NI and RoI, April 2016
Consumers told full-fat cheese does not increase heart attack risk
Figure 15: Agreement with the statement ‘Low-fat cheese tastes as good as full-fat cheese’, NI and RoI, February 2017
Figure 16: Agreement with statements relating to diet foods, NI and RoI, August 2016
Protein power could help drive cheese consumption
Figure 17: Indexed growth of all food products vs. cheese products launched claiming to be high protein, UK and Ireland, 2012-16
Figure 18: Perceived benefits of eating or drinking high-protein food and drinks, NI and RoI, February 2017
KEY PLAYERS AND INNOVATIONS – WHAT YOU NEED TO KNOW
‘Vegetarian’ cheese dominates new product launches
Fivemiletown continues to produce despite financial hardship
Brexit presents major difficulties for Irish dairy
Glanbia Co-operative striving for a better deal for farmers
Cashel Farmhouse produce claims World Cheese awards
WHO’S INNOVATING? 
Free-from cheeses
Figure 19: New product launches in Irish cheese market with free-from claims, 2012-17*
Fat-free cheese
Vegan-friendly cheese
Cheese with high-protein claims
New cheese product launches in Ireland
Figure 20: New product launches in the Irish cheese market, by claims, 2012-16
COMPANIES AND BRANDS 
Arla Foods
Key facts
Product portfolio
Brand NPD
Recent developments
Dale Farm
Key facts
Product portfolio
Recent developments
The Carbery Group
http://www.greenislefoods.ie/Key facts
Product portfolio
Recent developments
Dairygold
Key facts
Product portfolio
Recent developments
Fivemiletown Creamery
Key Facts
Product portfolio
Glanbia Plc.
Key facts
Product portfolio
Recent developments
Cashel Farmhouse Cheesemakers
Key facts
Product portfolio
Kerry Group
Key facts
Product portfolio
Brand NPD
Recent developments
Mondelēz International
Key facts
Product portfolio
Brand NPD
Recent developments
THE CONSUMER – WHAT YOU NEED TO KNOW
Cheese eating almost universal in Ireland
Cheese sees high usage in sandwiches
Cheese seen as a good source of protein
TYPES OF CHEESE PURCHASED
Four in five consumers bought cheddar
Figure 21: Types of cheese that consumers have bought for themselves or others in the last three months, NI and RoI, February 2017
Figure 22: Cheese products launched claiming to be L/N/R lactose, UK and Ireland, 2012-17*
Cheddar most likely to be bought by women and 35-44-year-olds
Figure 23: Consumers who have bought cheddar for themselves or others in the last three months, by gender and age, NI and RoI, February 2017
Figure 24: Responsibility for the main grocery shop in household, by gender, NI and RoI, November 2016
Figure 25: Consumers who have bought cheddar for themselves or others in the last three months, NI and RoI, 2016 and 2017
RoI consumers much more likely to buy low-fat cheese
Figure 26: Consumers who have bought low/reduced fat cheese for themselves or others in the last three months, by gender and age, NI and RoI, February 2017
Figure 27: Consumers who describe their current body type/weight as overweight, by gender and age, NI and RoI, August 2016
Cream cheese sees greater usage than spreadable cheese
Figure 28: Consumers who have bought cream cheese vs spreadable cheese for themselves or others in the last three months, NI and RoI, February 2017
Meal occasions key driver for cream/ spreadable cheese, but snacking occasions increasingly important
USAGE OF CHEESE
As part of a sandwich remains top usage of cheese
Figure 29: Ways that consumers have used/ eaten cheese in the last three months, NI and RoI, February 2017
Cheese in sandwiches has broad appeal
Figure 30: Usage of cheese in a sandwich in the last three months, by age, NI and RoI, February 2017
Figure 31: Agreement with selected statements relating to bread and baked products, NI and RoI, February 2016
Cheese on crackers popular with ABC1 consumers
Figure 32: Usage of cheese with savoury biscuits (eg cracker) in the last three months, by gender and social class, NI and RoI, February 2017
Cheese key for cooking
Figure 33: Usage of cheese when cooking in the last three months, by daily internet usage, NI and RoI, February 2017
ATTITUDES TOWARDS CHEESE
Cheese seen as a good source of protein
Figure 34: Agreement with statements related to cheese, NI and RoI, February 2017
Interest in high-quality packaging closures
Mature consumers more likely to see cheese as a protein source
Figure 35: Agreement with the statement ‘Eating cheese is a good way to get protein in my diet’, by age, NI and RoI, February 2017
Seven in 10 interested in trying cheese from around the world
Figure 36: Agreement with the statements ‘I am interested in trying new cheeses from around the world’ and ‘I would like more continental-style cheeses made with Irish dairy’, NI and RoI, February 2017
Over half of consumers would pay more for fair prices for farmers
Younger consumers prefer mild flavours, mature flavours for the old
Figure 37: Agreement with the statement ‘I prefer the flavour of milder-tasting cheese to stronger-tasting cheese’, by age, NI and RoI, February 2017
Figure 38: Actual and projected population (%) for RoI and NI, by age, 2011 and 2026
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Definition
Market size rationale
Data sources
Generational Cohorts
Abbreviations