Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Cheese - UK - April 2009

This report focuses on the UK market for cheese, which Mintel last examined in July 2007. The period since the last report has seen major challenges for the industry. Initially these came from the impact of rising prices, which, added to what were already falling milk volumes, led to a dramatic increase in the price of cheese on the supermarket shelf.

The cheese market is valued at £2.1 billion in 2008 with continued price rises and modest increases in volumes set to raise its value to nearer £2.2 billion in 2009.

Yet, as consumers increasingly examine their diets in light of healthy eating campaigns, this could impact on how cheese is viewed. Health concerns in particular have already prompted many to seek out low- or reduced-fat alternatives. Equally, a growing number of consumers are seeking greater quality and innovation when purchasing cheese. This has helped stimulate demand for mature styles as well as UK territorial and continental cheeses.

Key report themes

  • What do consumers really think of cheese and how can suppliers capitalise on their perceptions?

  • Should manufacturers focus more on region and provenance?

  • When do people eat cheese and how can increased consumption be encouraged?

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Issues in the Market

      • Key themes
        • Definitions
          • The speciality market
            • Abbreviations
            • Future Opportunities

              • 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

                            • 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

                                          • Key points
                                            • Cheese remains popular with adults
                                              • Rising milk prices may hit sales
                                                • Figure 1: UK farmgate price of milk, 2003-08
                                              • Rising health awareness is having impact on market
                                                • Figure 2: Agreement with selected statements about diet, 2004-08
                                              • FSA campaign focused on saturated fat consumption
                                                • Provenance emerging as an important factor
                                                  • 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
                                                      • Figure 4: Agreement with selected statements about cooking, 2004-08
                                                    • Uses for cheese
                                                      • Savoury biscuit sales on the up...
                                                        • Figure 5: Other products bought, by cheese eaters, 2008
                                                      • Lunch box opportunities less obvious
                                                        • Snacking opportunities are more positive
                                                        • Broader Market Environment

                                                          • Key points
                                                            • Increased affluence brings mixed message for the market
                                                              • Figure 6: Forecast adult population trends, by socio-economic group, 2004-14
                                                            • Ageing population may hit heavy usage of cheese
                                                              • 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
                                                                  • Figure 8: EU Protected Food Names Scheme
                                                              • Competitive Context

                                                                • Key points
                                                                  • Cheese performs better than the dairy sector in general
                                                                    • 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

                                                                    • Strengths
                                                                      • Weaknesses
                                                                      • Who’s Innovating?

                                                                        • Key points
                                                                          • Innovation sees strong interest from manufacturer brands...
                                                                            • Figure 10: New product launches – own-label vs. brands, 2006-08
                                                                          • ...although own-label is significant in its own right
                                                                            • Figure 11: NPD by manufacturer, 2008
                                                                          • Vegetarian claims up, with organic also seeing growth
                                                                            • 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

                                                                                      • Key points
                                                                                        • Growth in market value outstrips volume sales, but fails to keep pace with inflation
                                                                                          • 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
                                                                                                • Figure 15: UK retail value sales of cheese, by sector, 2004, 2006 and 2008
                                                                                              • Forecast
                                                                                                • 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

                                                                                                • Key points
                                                                                                  • Cheddar still dominates, despite activity elsewhere in the market
                                                                                                    • Figure 18: UK retail value sales of cheese, by sector, 2004-14
                                                                                                  • Cheddar builds on its success
                                                                                                    • 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

                                                                                                          • Key points
                                                                                                            • Retail own label makes a comeback as credit crunch hits consumers
                                                                                                              • Figure 20: Brands’ retail value shares in cheese, 2007-08
                                                                                                          • Companies and Products

                                                                                                            • Key points
                                                                                                              • Manufacturers and brands
                                                                                                                • 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

                                                                                                                          • Key points
                                                                                                                            • Interest in promoting cheese remains high
                                                                                                                              • Figure 22: Main monitored media advertising spend on cheese, 2004-08
                                                                                                                            • Big brands dominate
                                                                                                                              • Figure 23: Main monitored media spend by brand, 2006-08
                                                                                                                            • Television is the preferred choice for advertisers
                                                                                                                              • Figure 24: Main monitored media advertising expenditure on cheese, by media type, 2004-08
                                                                                                                          • Channels to Market

                                                                                                                            • Key points
                                                                                                                              • Supermarkets dominate market
                                                                                                                                • 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

                                                                                                                                    • Key points
                                                                                                                                      • Overall consumption is holding up well
                                                                                                                                          • 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
                                                                                                                                                    • Figure 27: Variety of cheese (in blocks) eaten in the last 12 months, 2004-08
                                                                                                                                                  • Is Britain going soft?
                                                                                                                                                    • Figure 28: Type of packed cheese eaten in the last 12 months, 2004-08
                                                                                                                                                • The Consumer – Attitudes

                                                                                                                                                  • Key points
                                                                                                                                                      • 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
                                                                                                                                                            • 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
                                                                                                                                                                    • Figure 31: Words or phrases associated with cheese, January 2009
                                                                                                                                                                • The Consumer – Further Analysis

                                                                                                                                                                  • 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
                                                                                                                                                                                  • 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
                                                                                                                                                                                      • Figure 33: Number of positive factors relating to cheese, January 2009
                                                                                                                                                                                      • Figure 34: Number of negative factors relating to cheese, January 2009
                                                                                                                                                                                    • Cheese target groups
                                                                                                                                                                                      • Figure 35: Target groups for cheese, January 2009
                                                                                                                                                                                    • Group 1: Cheese Stockists
                                                                                                                                                                                      • Group 2: Cheese Crazy
                                                                                                                                                                                        • Group 3: Disengaged
                                                                                                                                                                                          • Group 4: Just a treat
                                                                                                                                                                                              • Figure 36: Number of ways of serving cheese, by target groups, January 2009
                                                                                                                                                                                          • Appendix – Internal Market Environment

                                                                                                                                                                                              • 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)
                                                                                                                                                                                              • 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
                                                                                                                                                                                          • Appendix – Who’s Innovating?

                                                                                                                                                                                              • Figure 41: Product launch, by segmentation, 2006-08
                                                                                                                                                                                              • Figure 42: NPD by manufacturer, 2008
                                                                                                                                                                                          • Appendix – The Consumer – Usage

                                                                                                                                                                                              • Figure 43: Consumption of cheese (block or packeted) in the last 12 months, by detailed demographics, 2008
                                                                                                                                                                                              • Figure 44: Consumption of cheese (in blocks) in the last 12 months, by detailed demographics, 2008
                                                                                                                                                                                              • Figure 45: Consumption of packeted cheese in the last 12 months, by detailed demographics, 2008
                                                                                                                                                                                          • Appendix – The Consumer – Attitudes

                                                                                                                                                                                              • Figure 46: In which, if any, of these ways do you tend to eat or serve cheese? Please choose all that apply, January 2009
                                                                                                                                                                                              • 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)
                                                                                                                                                                                              • Figure 48: Which of the following factors, if any, are important to you when buying cheese? Please choose all that apply, January 2009
                                                                                                                                                                                              • Figure 49: Which of the following factors, if any, are important to you when buying cheese? Please choose all that apply, January 2009 (contd)
                                                                                                                                                                                              • Figure 50: Which of the following words/phrases, if any, do you associate with cheese?, January 2009
                                                                                                                                                                                              • Figure 51: Which of the following words/phrases, if any, do you associate with cheese?, January 2009 (contd)
                                                                                                                                                                                          • Appendix – The Consumer – Further Analysis

                                                                                                                                                                                              • Figure 52: Which of the following factors, if any, are important to you when buying cheese?, January 2009
                                                                                                                                                                                              • Figure 53: Which of the following factors, if any, are important to you when buying cheese?, January 2009
                                                                                                                                                                                              • Figure 54: Which of the following words/phrases, if any, do you associate with cheese?, January 2009
                                                                                                                                                                                              • Figure 55: Which of the following words/phrases, if any, do you associate with cheese?, January 2009
                                                                                                                                                                                              • Figure 56: In which, if any, of these ways do you tend to eat or serve cheese?, January 2009
                                                                                                                                                                                              • Figure 57: In which, if any, of these ways do you tend to eat or serve cheese?, January 2009
                                                                                                                                                                                              • Figure 58: Which of the following factors, if any, are important to you when buying cheese?, January 2009
                                                                                                                                                                                              • Figure 59: Which of the following factors, if any, are important to you when buying cheese?, January 2009
                                                                                                                                                                                              • Figure 60: Which of the following words/phrases, if any, do you associate with cheese?, January 2009
                                                                                                                                                                                              • Figure 61: Which of the following words/phrases, if any, do you associate with cheese?, January 2009
                                                                                                                                                                                              • Figure 62: In which, if any, of these ways do you tend to eat or serve cheese?, January 2009
                                                                                                                                                                                              • Figure 63: In which, if any, of these ways do you tend to eat or serve cheese?, January 2009
                                                                                                                                                                                            • Ways of serving cheese
                                                                                                                                                                                              • Figure 64: The number of ways that people tend to serve cheese, January 2009
                                                                                                                                                                                              • Figure 65: The number of ways that people tend to serve cheese, by detailed demographics, January 2009
                                                                                                                                                                                            • Attributes of cheese
                                                                                                                                                                                              • Figure 66: Number of positive words relating to cheese, January 2009
                                                                                                                                                                                              • Figure 67: Number of positive words associated with cheese, by detailed demographics, January 2009
                                                                                                                                                                                              • Figure 68: Number of negative factors relating to cheese, January 2009
                                                                                                                                                                                              • Figure 69: Number of negative factors relating to cheese, by detailed demographics, January 2009
                                                                                                                                                                                              • Figure 70: Number of positve factors relating to cheese, by factors influencing purchase of cheese, January 2009
                                                                                                                                                                                              • Figure 71: Number of negative factors relating to cheese, by factors influencing purchase of cheese, January 2009
                                                                                                                                                                                            • Target groups
                                                                                                                                                                                              • Figure 72: Ways of serving cheese, by target groups, January 2009
                                                                                                                                                                                              • Figure 73: Factors influencing purchase of cheese, by target groups, January 2009
                                                                                                                                                                                              • Figure 74: Target groups, by detailed demographics, January 2009

                                                                                                                                                                                          Companies Covered

                                                                                                                                                                                          • A Mclelland & Son Ltd
                                                                                                                                                                                          • Aldi Stores Ltd (UK & Ireland)
                                                                                                                                                                                          • Amazon.co.uk
                                                                                                                                                                                          • Arla Foods amba
                                                                                                                                                                                          • Asda Group Ltd
                                                                                                                                                                                          • Bel UK
                                                                                                                                                                                          • British Market Research Bureau (BMRB)
                                                                                                                                                                                          • British Sky Broadcasting Group plc (BSkyB)
                                                                                                                                                                                          • BT Group plc
                                                                                                                                                                                          • Co-operative Group
                                                                                                                                                                                          • Connage Highland Dairy
                                                                                                                                                                                          • Dairy Crest Group plc
                                                                                                                                                                                          • Department for Environment, Food & Rural Affairs
                                                                                                                                                                                          • Food Standards Agency
                                                                                                                                                                                          • Freeview
                                                                                                                                                                                          • Good Housekeeping
                                                                                                                                                                                          • Government Actuary's Department (GAD)
                                                                                                                                                                                          • HomeChoice
                                                                                                                                                                                          • J. Sainsbury
                                                                                                                                                                                          • Kerry Foods
                                                                                                                                                                                          • Kraft Foods UK
                                                                                                                                                                                          • Lactalis UK & Ireland
                                                                                                                                                                                          • Lidl (UK)
                                                                                                                                                                                          • Marks & Spencer
                                                                                                                                                                                          • Milk Development Council [MDC]
                                                                                                                                                                                          • Netto Foodstores Ltd
                                                                                                                                                                                          • North Downs Dairy Co Ltd
                                                                                                                                                                                          • O. Kavli AS [UK]
                                                                                                                                                                                          • Ofcom
                                                                                                                                                                                          • OMSCo
                                                                                                                                                                                          • S.p.A. Egidio Galbani
                                                                                                                                                                                          • Somerfield
                                                                                                                                                                                          • Tesco Plc
                                                                                                                                                                                          • Virgin Media Ltd
                                                                                                                                                                                          • Waitrose
                                                                                                                                                                                          • Wm Morrison Supermarkets
                                                                                                                                                                                          • Wyke Farms Limited

                                                                                                                                                                                          Cheese - UK - April 2009

                                                                                                                                                                                          £1,995.00 (Excl.Tax)