2022
9
UK Cheese Market Report 2022
2022-10-06T04:20:39+01:00
OX1102611
2195
156255
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Report
en_GB
“The income squeeze will take its toll on cheese, with 42% of people who eat and buy cheese saying money concerns would make them spend less. Together with the popular…

UK Cheese Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Cheese Market Report identifies consumers’ cheese eating habits, preferences towards leading cheese brands and own labels, and the impact of rising inflation on the UK cheese market. This report covers the UK cheese market size, market forecast, market segmentation and future cheese trends.

 

Current Landscape of the UK Cheese Market

The UK cheese market enjoyed a boost from the rise in at-home meal occasions in 2020/21. However, these occasions have ebbed in 2022, even with the income squeeze curbing the return to foodservice.

Leading brands are facing shifting cheese trends, with own-label and lesser-known cheese variants enjoying the potential to win over new users in the UK cheese market. The income squeeze will likely to make shoppers disrupt their habits by trading down to cheaper and own-label alternatives that deliver value for money.

 

UK Cheese Market Share and UK Cheese Consumption

Mintel’s UK cheese market report outlines that sustainability is expected to rebound once the pressures on household incomes ease. This has seen the UK cheese market come under scrutiny, with 26% of people who eat and buy it limiting or reducing their intake due to environmental concerns – this speaks to the scale of the threat that environmental concerns pose to UK cheese consumption.

  • UK cheese market share: Cathedral City is one of the leading brands in the UK cheese market, with a retail sales value of £262 million in 2021/22.
  • UK cheese consumption: 35% of UK adults eat cheese 2-3 times a week.
  • UK cheese consumption: 71% of UK consumers have bought cheddar in the past three months.
  • UK cheese market consumer behaviours: 66% of cheese eaters believe that own-label cheese is just as good quality as branded cheese.

 

Future Cheese Trends

Mintel’s cheese market report identifies that plant-based cheese holds the potential to keep people engaged with the category amidst these concerns. However, this subcategory faces various challenges to unlock this potential, including needing to rival the dairy-based variants on price, eating experience and naturalness.

To discover more about the UK Cheese Market Report 2022, read our UK Dairy and Non-Dairy Market Report 2022or take a look at our extensive Dairy Market Research.

 

 

Quickly Understand

  • The performance of the UK cheese market in the aftermath of COVID-19.
  • Opportunities and challenges posed by the income squeeze in light of consumer attitudes.
  • The role of environmental concerns in people’s UK cheese consumption and preferred steps to reduce their environmental impact.
  • Recent NPD trends in plant-based cheese and consumer interest in and selected barriers to adopting it.
  • Explores UK cheese market share and UK cheese market size.

 

Covered in this Report

Products: Fresh cheese, cream cheese, semi-hard cheese, hard cheese, processed cheese, soft cheese, semi-soft cheese.

Brands: Saputo (Cathedral City), Mondelez (Dairylea, Philadelphia,) Kerry (Strings& Things), Ornua Foods (Pilgrims Choice), Bel (Babybel, Galbani, Boursin), Lactalis (Seriously, President), Sainsbury’s, Lidl, Waitrose & Partners, Wyke Farms, M&S, Tesco, Arla Foods (B.O.B), Grass Routes Dairy Co., Primula, Sheese, Vitalife, Sojasun Corn.

 

Expert Analysis from a Specialist in the UK Cheese Market

This report, written by Angharad Goode, a leading analyst in the food industry, delivers in-depth commentary and analysis to highlight current trends in the UK cheese market and add expert context to the numbers.

The income squeeze will take its toll on cheese, with 42% of people who eat and buy cheese saying money concerns would make them spend less. Together with the popular view that own-label cheese is just as good quality as branded, this puts the leading brands under pressure to prove their value. How they pack a punch on flavour remains a key message to explore, to leverage the oft-seen ‘trading up while trading down’ mindset.”

Angharad Goode - Research Analyst

Angharad Goode
Research Analyst

 

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for cheese
      • Figure 1: Category outlook, 2022-27
    • The market
    • 2022 will see volumes fall further, price rises drive value growth
    • Cheese market to see volumes fall in 2023
      • Figure 2: Market forecast for value sales of the UK cheese retail market, 2022-27
    • Cheddar and processed cheese outperform wider category in 2022
      • Figure 3: UK retail value and volume sales of cheese, by type, 2020-22
    • Companies and brands
    • Own-label gains market share amidst growing pressures on household budgets
      • Figure 4: Leading brands’ sales and shares in the UK retail cheese market, by value and volume, 2019/20-2021/22
    • Major names launch vegan variants; leading cheddar brands revamp packaging
      • Figure 5: Share of cheese product launches with vegan, dairy-free and plant-based claims, 2017-22
    • 2022 gets off to a slow start on adspend
    • The consumer
    • Nine in 10 adults eat cheese
      • Figure 6: Frequency of eating cheese, 2021 and 2022
    • Overall cheese buying is unchanged against 2021
      • Figure 7: Types of cheese bought, 2021 and 2022
    • Income squeeze will put cheese under pressure
      • Figure 8: Behaviours related to cheese, 2022
    • A quarter would eat less cheese to reduce environmental impact
      • Figure 9: Preferred steps to reduce the environmental impact of personal cheese usage, 2022
    • Two in five would like a wider variety of plant-based cheese in supermarkets
      • Figure 10: Attitudes towards cheese, 2022
  3. Issues and Insights

    • Cost-of-living crisis takes its toll on the cheese market in 2022
    • A quarter would eat less cheese to reduce environmental impact
    • Plant-based cheese faces opportunities and challenges
  4. Market Size and Performance

    • 2022 will see volumes fall further, price rises drive value growth
      • Figure 11: UK retail sales of cheese, by value and volume, 2017-22
  5. Market Forecast

    • Mixed fortunes for value and volumes sales
      • Figure 12: Category outlook, 2022-27
    • Cheese volumes to fall in 2023
      • Figure 13: Market forecast for value sales of the UK cheese retail market, 2022-27
      • Figure 14: Market forecast for volume sales of the UK cheese retail market, 2022-27
    • Learnings from the last income squeeze
      • Figure 15: UK retail cheese sales’ annual growth, by value and volume, 2009-14
    • Forecast methodology
  6. Market Segmentation

    • Cheddar remains largest segment
    • Cheddar struggles in 2021
    • Processed cheese thrives, recipe cheese struggles, in the absence of restrictions
      • Figure 16: UK retail value and volume sales of cheese, by type, 2020-22
  7. Market Drivers

    • Farmgate price of milk rises sharply, cheese prices follow
      • Figure 17: All items, food and cheese & curd CPI, farmgate milk price, January 2017-July 2022
    • Brexit hinders imports for small cheesemongers
    • Ongoing growth of 15-44s will support cheese’s volume growth
      • Figure 18: Trends in the age structure of the UK population, 2016-21 and 2021-26
    • COVID-19 adds to the focus on sustainability
    • Inflation is the key concern for consumers and brands…
    • …and despite government support, energy prices are still a major concern…
    • …and will weigh down the post-COVID recovery
    • Consumer spending power will be curbed
    • The conflict in Ukraine is hurting the UK economy in a number of ways
    • Unemployment is at a near 50-year low
    • Consumers’ financial wellbeing has fallen from the highs of 2021…
      • Figure 19: Household financial wellbeing index, 2016-22
    • …and most people are feeling the effects of price rises
    • Cheese faces curbs on spend
  8. Market Share

    • Own-label gains share in 2021/22
      • Figure 20: Leading brands’ sales and shares in the UK retail cheese market, by value and volume, 2019/20-2021/22
    • Leading cheddar brands lose ground in 2021/22
    • Children’s brands buck downward trend
  9. Launch Activity and Innovation

    • Flavoured cheeses abound
    • One in four launches feature flavours in 2021
      • Figure 21: Recent examples of flavoured cheese launches, 2021-22
    • Cathedral City and Philadelphia explore flavours
      • Figure 22: Cathedral City, Wyke Farms and Philadelphia flavoured cheese launches, 2022
    • Seasonal and premium launches leap ahead in 2021
    • Seasonal makes up one in five launches
      • Figure 23: Share of premium and seasonal launches in cheese launches, 2017-22
      • Figure 24: Recent examples of seasonal cheese launches, 2021-22
    • Packaging refreshes and seasonal activity take premium to one in three launches
      • Figure 25: Recent examples of premium cheese launches, 2021-22
    • Slew of new packaging designs comes to market
    • Cathedral City launches side-opening pack
      • Figure 26: Cathedral City packaging revamp, 2021-22
    • Pilgrims Choice revamps design to focus on taste
      • Figure 27: Pilgrims Choice packaging revamp, 2021-22
    • Wyke Farms revamps packaging design and launches carbon-neutral cheese
      • Figure 28: Wyke Farms packaging revamp, 2021-22
    • Omsco launches Grass Roots Dairy Co., Arla brings B.O.B to cheese
      • Figure 29: Arla B.O.B Mature Cheddar, 2022
    • Vegan cheese launches remain uncommon
      • Figure 30: Share of cheese product launches with vegan, dairy-free and plant-based claims, 2017-22*
    • Leading dairy cheese brands move into vegan segment
    • Bel, Boursin and Philadelphia launch plant-based variants
      • Figure 31: Cheese product launches with a plant-based claim, 2021-22
    • Saputo extends plant-based presence with Cathedral City
    • ‘Cheese’ pushes melting capabilities
      • Figure 32: Cheese alternative launches with claims about melting, 2021
  10. Advertising and Marketing Activity

    • 2022 off to slow start
      • Figure 33: Total above-the-line, online display and direct mail advertising expenditure on cheese, 2019-22*
    • Cathedral City banks on quality in 2022 campaign
      • Figure 34: Total above-the-line, online display and direct mail advertising expenditure on cheese, by brand, sorted by 2022, 2019-22*
    • Pilgrims Choice pushes taste
    • Provenance of parmesan spotlighted
    • Babybel continues Red Nose Day partnership
    • M&S Food highlights Cornish Cruncher cheese
    • Violife explores a vegan BBQ…
    • …and encourages people to Change Your Cheese
    • Dairy UK launches consumer-facing ad to highlight progress on sustainability
    • Nielsen Ad Intel coverage
  11. Brand Research

    • Brand map
      • Figure 35: Attitudes towards and usage of selected brands, 2022
    • Key brand metrics
      • Figure 36: Key metrics for selected brands, 2022
    • Brand attitudes: Cathedral City seen most widely as trustworthy
      • Figure 37: Attitudes, by brand, 2022
    • Brand personality: Babybel and Dairylea vie for most fun image
      • Figure 38: Brand personality – macro image, 2022
    • Cathedral City leads on image as delicious
      • Figure 39: Brand personality – micro image, 2022
  12. Usage and Types of Cheese Bought

    • Usage remains high
    • Nine in 10 adults eat cheese
      • Figure 40: Frequency of eating cheese, 2021 and 2022
    • Under-45s are core users
      • Figure 41: Frequency of eating cheese, by age and family situation, 2022
    • Overall cheese buying is unchanged against 2021
      • Figure 42: Types of cheese bought, 2021 and 2022
  13. Behaviours Related to Cheese

    • Income squeeze will put cheese under pressure
    • Two in five would spend less on cheese amidst money concerns
      • Figure 43: Behaviours related to cheese, 2022
    • Tips for trading down appeal widely
    • Focus on flavour that packs a punch
      • Figure 44: Allerum’s Präst Cheese positioned as elevating the flavour of meals, 2020
    • Help people combat food waste to strengthen value image
      • Figure 45: ICA Cabbage and Pak Choi Mix calls out tips for using up leftovers, 2022
  14. Perceptions of Reducing Environmental Impact of Cheese

    • A quarter would eat less cheese to reduce environmental impact
      • Figure 46: Preferred steps to reduce the environmental impact of personal cheese usage, 2022
    • Local cheese can push environmental credentials
    • Carbon offset cheese has work to do to win over consumers
      • Figure 47: Arla Organic Skimmed Milk and Sojasun Corn, Oat & Almond Drink highlighting green credentials on-pack, 2022
  15. Attitudes towards Cheese

    • Plant-based cheese faces opportunities and challenges
    • Two in five would like a wider variety of plant-based cheese in supermarkets
      • Figure 48: Attitudes towards cheese, 2022
    • Price and complex ingredients pose barriers to plant-based cheese
    • Cheese can tap into the meat reduction trend
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  17. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 49: UK retail sales of cheese, by value and volume, 2017-27
      • Figure 50: UK retail value sales of cheese, best- and worst-case forecast, 2022-27
      • Figure 51: UK retail volume sales of cheese, best- and worst-case forecast, 2022-27
    • Market drivers and assumptions
    • Forecast methodology
  18. Appendix – Market Share

      • Figure 52: Leading manufacturers’ sales and shares in the UK retail cheese market, by value and volume, 2019/20-2021/22
  19. Appendix – Launch Activity and Innovation

      • Figure 53: Cheese product launches, by flavour component, 2017-22
      • Figure 54: Launch activity in the cheese market, by launch type, 2017-22

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

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Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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