Canada Cheese Market Report 2022

Overview

• What you need to know
• This Report looks at the following areas
• Definition

Executive Summary

• Top takeaways
• Market overview
• • Figure 1: Category outlook for cheese, 2022-27
• Opportunities
• Versatility is cheese’s biggest asset
• Half of consumers are willing to pay more for convenience
• Consumers want to see more local cheeses where they shop
• Challenges
• Half of consumers are willing to sacrifice on quality to save money
• Most Canadians are skeptical that plant-based is as good as dairy cheese

Market Factors

• As inflation mounts, value’s importance rises
  • Figure 2: Canadian year-over-year Consumer Price Index (inflation rate) by month, 2019-22
  • Figure 3: Expected increase in household income vs household spending by quarter among Canadians, 2014-Q1 22
• • Figure 4: Top issues of concern for Canadians over the next six months (any rank), 2022
• • Figure 5: Monthly average retail prices for processed cheese slices, 2019-22
• Shifts in where Canadians work will persist beyond the pandemic
  • Figure 6: Stated work location of employed Canadian adults, 2022
• • Figure 7: Population growth by select census metropolitan areas, 2021 vs 2019
• Methane reduction is becoming a key focus
  • Figure 8: Global methane emissions, 1990-2018
• The UK is the latest trading partner to make a ‘stink’ about dairy exports into Canada

Competitive Strategies and Market Opportunities

• Snacks and life-hacks grow in importance as life returns to ‘normal’
  • Figure 9: Kraft Natural Cheese Cracker Cuts Sharp Cheddar Cheese (US), 2021
• • Figure 10: Cracker Barrel Sweet Combo Old Cheddar Cheese + Raspberry Infused Dried Cranberries, Graham Bites & Milk Chocolate Chunks (Canada), 2021
  • Figure 11: Babybel Plus+ Dairy Snack with Vitamin A & Vitamin B12 (US), 2021
• • Figure 12: SlimFast Keto Fat Bomb Garlic & Onion Snack Mix (US), 2021
  • Figure 13: Merkts Mini Sharp Cheddar Cheese (US), 2021
• • Figure 14: Cracker Barrel Signature Smoked Aged & Medium Shredded Natural Cheddar Cheese (Canada), 2021
• Cheese expands into different formats (cheese fries, bread and wraps)
  • Figure 15: Parm Crisps Original Snack Mix (US), 2021
  • Figure 16: Folios Parmesan Cheese Wraps (US), 2021
• • Figure 17: Emporium Selection Cheese Fries (US), 2021
  • Figure 18: Pavé d’Affinois Advent Calendar Cheese Lovers (Canada), 2021
• Cheese can be a trusted vehicle for flavour exploration
  • Figure 19: Kite Hill Pumpkin Pie Cream Cheese Alternative (US), 2021
  • Figure 20: Martha Stewart Kitchen Baked Brie with Brown Sugar, Apple and Pecans (US), 2021
• • Figure 21: Kindred Creamery Ginseng & Garlic Jack Cheese (US), 2021
  • Figure 22: Montchevre Blueberry Lemon Goat Cheese (US), 2022
• • Figure 23: Emporium Selection Mango Chilli Goat Milk Cheese (US), 2021
  • Figure 24: Cracker Barrel Jalapeño Pizza Mozzarella String Cheese (Canada), 2021
• Wine/beer and cheese makes way for wine/beer in cheese
  • Figure 25: Coombe Castle Beer Cheddar Cheese (Canada), 2022
  • Figure 26: Coombe Castle Irish Buck Cheddar Cheese with Whiskey & Ginger (Canada), 2022
• • Figure 27: Emporium Selection Irish Porter Cheddar Cheese with Porter Ale (US), 2021
  • Figure 28: Trader Joe’s British Mustard & Ale Cheddar Cheese (US), 2021
• • Figure 29: Kirkland Signature Cabernet Sauvignon Sartori BellaVitano Cheese (US), 2021
  • Figure 30: Snowdonia Cheese Company Ruby Mist Cheddar Cheese with Port Brandy (Canada), 2022
• Plant-based cheese can leverage different flavours, benefits and formats to make it more enticing and relevant
  • Figure 31: Daiya Cutting Board Collection Mexican Four Cheeze Flavoured Blend Shreds (Canada), 2021
  • Figure 32: Plant Perks Smoked Gouda Spread (US), 2020
• • Figure 33: Daiya Think Crust Gluten-Free Classic Pizza (Canada), March 2022
  • Figure 34: Daiya Cheddar Flavour Slices (Canada), 2022
• Beyond plant-based, cultured dairy is a space to watch

The Cheese Consumer – Fast Facts

Cheese Consumption by Type

• Nearly all Canadians eat cheese in one form or another
  • Figure 35: Types of cheese eaten in the past three months, 2022
• Women eat a wider variety of cheese
  • Figure 36: Types of cheese eaten in the past three months, men vs women, 2022
• • Figure 37: Types of cheese eaten in the past three months (select), by age, 2022
• • Figure 38: Types of cheese eaten in the past three months (select), by parental status, 2022
• • Figure 39: Types of cheese eaten in the past three months (select), South Asians vs Chinese Canadians vs overall, 2022

Cheese Consumption by Format

• Cheese formats that make life easier are also the most popular
  • Figure 40: Cheese formats eaten in the past three months, 2022
• Age and parental status impact demand for different formats
  • Figure 41: Cheese formats eaten in the past three months, by age, 2022
• • Figure 42: Cheese formats eaten in the past three months, by parental status, 2022
• • Figure 43: Cheese formats eaten in the past three months, South Asians vs Chinese Canadians vs overall population, 2022
• • Figure 44: Types of cheese eaten in the past three months (select), Quebec vs overall population, 2022

Cheese Consumption Frequency

• Incentivizing more frequent consumption of cheese is key to growing the category
  • Figure 45: How often cheese is eaten, 2022
• South Asians and Chinese Canadians eat cheese less often
  • Figure 46: How often cheese is eaten, South Asians vs Chinese Canadians vs overall population, 2022
• • Figure 47: Frequent eaters of cheese, by parental status, 2022

How Cheese is Typically Used

• The number of ways in which Canadians use cheese is a testament to its versatility
  • Figure 48: How cheese is typically used or eaten, 2022
• Older consumers are more likely to use cheese in a greater variety of ways
  • Figure 49: How cheese is typically used or eaten, by age, 2022
• • Figure 50: How cheese is typically used or eaten, South Asians vs Chinese Canadians vs overall population, 2022
• • Figure 51: Typically eat cheese paired with a beverage, Quebec vs overall population, 2022

Important Factors When Choosing Cheese

• Price and flavour are top-of-mind for Canadians when choosing cheese
  • Figure 52: Important factors when choosing what cheese to purchase, 2022
• Price, format and flavour resonate across age groups
  • Figure 53: Important factors when choosing what cheese to purchase, by age, 2022
• • Figure 54: Important factors when choosing what cheese to purchase, South Asians vs Chinese Canadians vs overall population, 2022

Where Cheese is Purchased

• The dairy section in grocery stores is where the vast majority of Canadians buy their cheese
  • Figure 55: Where cheese is typically purchased, 2022
• Younger Canadians get their cheese from a wider variety of sources
  • Figure 56: Where cheese is typically purchased, by age, 2022
• • Figure 57: Where cheese is typically purchased, by parental status, 2022
• • Figure 58: Where cheese is typically purchased, South Asians vs Chinese Canadians vs overall population, 2022
• • Figure 59: Where cheese is typically purchased, by work location, 2022
• • Figure 60: Where cheese is typically purchased, Quebec vs overall population, 2022

Attitudes Toward Cheese

• Half of Canadians are willing to sacrifice on quality to save money
  • Figure 61: Statements about cheese and ‘current events’, 2022
• • Figure 62: No Name Shredded Mild Cheddar Cheese (Canada), August 2020; PC Shredded Smoke Flavoured Cheddar Cheese (Canada), May 2020
  • Figure 63: “Right now I’m more willing to sacrifice on quality when it comes to cheese because of rising food prices” (% agree), by household income, 2022
• • Figure 64: “I’m eating more cheese now than compared to before the start of the pandemic (ie March 2020)” (% agree), by work location, 2022
• Canadians are split when it comes to paying extra for convenience
  • Figure 65: Statements about cheese and ‘cost and convenience’, 2022
• • Figure 66: Statements about cheese and ‘cost and convenience’, by parental status, 2022
• • Figure 67: Statements about cheese and ‘cost and convenience’, by age, 2022
• Most Canadians view cheese as both nourishing and indulgent
  • Figure 68: Statements about the role of cheese, 2022
• • Figure 69: “Cheese makes meals/snacks more nourishing” (% agree), by age, 2022
• • Figure 70: Statements about the role of cheese, by work location, 2022
• Most Canadians want more local cheese options
  • Figure 71: Statements about variety and the importance of local when it comes to cheese, 2022
• • Figure 72: “I often seek out different types of cheese” (% agree), by parental status, 2022
• Most Canadians are skeptical of non-dairy cheese
  • Figure 73: Statements about non-dairy cheese, 2022
• • Figure 74: Views about non-dairy cheese and health and the environment (% agree), by age, 2022
• • Figure 75: Views about non-dairy cheese and health and the environment (% agree), South Asians vs Chinese Canadians vs overall population, 2022
• • Figure 76: “The environmental impact of dairy production has led me to cut back on eating dairy-based cheese” (% agree), by region, 2022

Appendix – Data Sources and Abbreviations

• Data sources
• Consumer survey data
• Abbreviations and terms
• Abbreviations