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Cheese - UK - October 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Falling prices see volume sales return to growth
Figure 1: Forecast of UK retail value sales of cheese, 2014-24
Cheddar retains lead, despite sluggish sales; continental sees growth
Figure 2: Share of UK retail value sales of cheese, by type, 2019
Improved household incomes create a boost
Companies and brands
Own-label growth outpaces the market; Saputo’s Cathedral City leads brand sales
Figure 3: Leading brands’ shares in the UK cheese market, by value, 2018/19*
Brands look to health and snacking in NPD
Vegan trend continues to gather pace
Decline in adspend stabilises
Cathedral City leads on trust; Cheestrings on fun
The consumer
91% of UK adults eat cheese
Figure 4: Frequency of eating/using cheese, July 2019
Hard cheese is by far the most popular purchase, at 73%
Figure 5: Types of cheese bought, July 2019
With bread is the most popular way to eat cheese; a third snack on it
Figure 6: Occasions when cheese is used/eaten, July 2019
Cheese type is the top purchasing factor
Figure 7: Factors influencing purchasing of cheese, July 2019
Meat replacement trend poses an opportunity; promotions still popular
Figure 8: Behaviours related to cheese, July 2019
Health benefits such as protein content resonate widely
Figure 9: Attitudes towards cheese, July 2019
What we think
ISSUES AND INSIGHTS
Meat replacement trend poses an opportunity for cheese
The facts
The implications
Highlight health benefits to prevent switching away from cheese
The facts
The implications
Freshness resonates more than environmentally friendly packaging in cheese
The facts
The implications
In-store guidance would help shoppers to navigate the cheese fixture
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Falling prices see volume sales return to growth
Cheddar retains lead, despite sluggish sales
Continental sees strongest growth
Health remains a concern for consumers
Out-of-home lunch market remains a threat
Improved household incomes create a boost
MARKET SIZE AND FORECAST
Falling prices see volume sales return to growth in 2019
Figure 10: UK retail value and volume sales of cheese, 2014-24
The future
Figure 11: Forecast of UK retail value sales of cheese, 2014-24
Figure 12: Forecast of UK retail volume sales of cheese, 2014-24
Forecast methodology
MARKET SEGMENTATION
Cheddar retains lead, despite sluggish sales
Continental sees strongest growth
Figure 13: UK retail value and volume sales of cheese, by type, 2017-19
MARKET DRIVERS
Health remains a concern for consumers
Meat-free trend provides an opportunity for cheese
The vegan movement is a threat
Out-of-home lunch market remains a threat
Improved household incomes create opportunities for premium products
Figure 14: CPI vs average weekly earnings, January 2013-April 2019
Brexit uncertainty lingers, potentially denting volumes as consumers cut back
Pressure grows on the food industry to reduce packaging waste
Rise in children and over-55s should support sales
Figure 15: Change in age structure of the UK population, 2014-19 and 2019-24
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Own-label growth outpaces the market; Saputo’s Cathedral City leads brand sales
Saputo’s Cathedral City focuses on health and snacking
Children’s brands look to snacking opportunities
Vegan trend continues to gather pace
Decline in adspend stabilises
Cathedral City leads on trust; Cheestrings on fun
MARKET SHARE
Own-label growth outpaces the market
Figure 16: Leading brands in the UK cheese market, by value and volume, 2017/18 and 2018/19
Saputo’s Cathedral City leads brand sales
Other cheddar brands see mixed fortunes
Mondelēz brands perform well
Figure 17: Leading manufacturers in the UK cheese market, by value and volume, 2017/18 and 2018/19
LAUNCH ACTIVITY AND INNOVATION
Own-label steps up innovation in 2019
Figure 18: Share of new product launches in the cheese market, by own-label vs branded, 2015-19
Tesco leads NPD
Figure 19: Tesco expands Creamfields tertiary line, 2019
Figure 20: Share of new product launches in the cheese market, by top 10 companies (sorted by 2018), 2015-19
Sainsbury’s steps up NPD
Figure 21: Retailers look to flavour innovation, 2019
Saputo’s Cathedral City focuses on health and snacking
Figure 22: Cathedral City NPD looks to snacking and health, 2019
Figure 23: Cathedral City extends further into biscuits, 2019
Other cheese makers look to health and snack trends too
Reducing fat content
Referencing digestion
Brands look to snacking opportunities, adding more fun through NPD
Figure 24: Brands target the snacking occasion in cheese, 2019
Vegan trend continues to gather pace
Figure 25: Share of new product launches in the cheese market carrying the vegan/no animal ingredients claim, 2015-19
Figure 26: Cheese makers look to vegan products, 2019
NPD positioning cheese as a core meal component taps into the meat reduction trend
Figure 27: Retailers market cheese as a meat/fish alternative, 2019
Premium claims bounce back in 2019
Figure 28: Share of new product launches in the cheese market carrying the premium claim, 2015-19
Lidl launches limited edition cheeses
Provenance offers standout
Figure 29: Emphasising country of origin, 2019
Referencing production methods can denote quality
Figure 30: Cheese makers reference production methods, 2019
Cheese makers look to cater to environmental/ethical concerns
Leerdammer launches Free Grazing Promise
Figure 31: Leerdammer highlights free grazing promise, 2018
Wensleydale Creamery converts food waste into electricity
Aldi’s cheese slices support sustainable palm oil
Figure 32: Aldi references use of sustainable palm oil on front of pack, 2019
ADVERTISING AND MARKETING ACTIVITY
Decline in adspend stabilises
Figure 33: Total above-the-line, online display and direct mail advertising expenditure on cheese, 2015-19
Bel overtakes Mondelēz as the leading advertiser
Babybel and The Laughing Cow focus on snack time
Leerdammer champions its free-grazing cows in ad
Mondelēz’ Philadelphia ad banned; Dairylea focuses on fun
Figure 34: Total above-the-line, online display and direct mail advertising expenditure on cheese, by top 10 advertisers (sorted by 2018), 2015-19
Figure 35: Share of total above-the-line, online display and direct mail advertising expenditure on cheese, by top brands, 2018
Seriously Spreadable returns to TV screens
Kerry supports Cheeshapes product under Strings & Things masterbrand
Pilgrims Choice continues dream campaign
Le Rustique pushes authenticity in TV advert
Wensleydale Creamery’s Crumble It campaign seeks to drive usage
Violife airs first vegan cheese ad on TV
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 36: Attitudes towards and usage of selected brands, September 2019
Key brand metrics
Figure 37: Key metrics for selected brands, September 2019
Brand attitudes: Philadelphia is most innovative
Figure 38: Attitudes, by brand, September 2019
Brand personality: Kids’ brands Dairylea and Cheestrings stand out on fun
Figure 39: Brand personality – Macro image, September 2019
Cathedral City seen to be the most delicious
Figure 40: Brand personality – Micro image, September 2019
Brand analysis
Cathedral City leads on trust, quality and authenticity
Figure 41: User profile of Cathedral City, September 2019
Seriously seen to be accessible by over half
Figure 42: User profile of Seriously, September 2019
Pilgrims Choice is seen to offer high quality by almost half
Figure 43: User profile of Pilgrims Choice, September 2019
Philadelphia delivers on health and for being unique
Figure 44: User profile of Philadelphia, September 2019
Cheestrings seen to be the most fun
Figure 45: User profile of Cheestrings, September 2019
Dairylea stands out as a family brand
Figure 46: User profile of Dairylea, September 2019
THE CONSUMER – WHAT YOU NEED TO KNOW
91% of UK adults eat cheese
Hard cheese is by far the most popular purchase, at 73%
With bread is the most popular way to eat cheese; a third snack on it
Cheese type is the top purchasing factor
Meat replacement trend poses an opportunity; promotions still popular
Health benefits such as protein content resonate widely
FREQUENCY OF EATING CHEESE 
91% of UK adults eat cheese
Figure 47: Frequency of eating/using cheese, July 2019
TYPES OF CHEESE BOUGHT 
Hard cheese is by far the most popular purchase, at 73%
Families opt for cream cheese and processed cheese
Figure 48: Types of cheese bought, July 2019
Affluent buyers are more adventurous
Figure 49: Types of cheese bought, by annual household income, July 2019
Buyers have a narrow repertoire; 35% buy just one type
Figure 50: Repertoire of types of cheese bought in the last three months, July 2019
CHEESE OCCASIONS 
With bread is the most popular way to eat cheese
Figure 51: Occasions when cheese is used/eaten, July 2019
A third eat cheese as a snack
Women and older consumers have a wider repertoire by occasion
Figure 52: Repertoire of occasions when cheese is used/eaten, July 2019
Figure 53: Boursin emphasises variety of uses on-pack, 2019
FACTORS INFLUENCING PURCHASING OF CHEESE
Cheese type is the top purchasing factor
Figure 54: Factors influencing purchasing of cheese, July 2019
Low price appeals to 42%
Figure 55: Those citing low price as a factor influencing purchasing of cheese, by annual household income, July 2019
CHEESE BEHAVIOURS 
Meat replacement trend poses an opportunity for cheese
Figure 56: Behaviours related to cheese, July 2019
Promotions remain a driver to switching among 52%
Brand extensions could offer additional revenue
Figure 57: Cheese – CHAID – Tree output, July 2019
Health influences cheese choices
Minority interest in subscriptions
ATTITUDES TOWARDS CHEESE
Health benefits such as protein content resonate widely
Figure 58: Attitudes towards cheese, July 2019
48% prioritise freshness over environmentally friendly packaging
In-store guidance would help 25%
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
CHAID Methodology
Figure 59: Cheese – CHAID – Table output, July 2019
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
Figure 60: UK value sales of cheese, best- and worst-case forecast, 2019-24
Figure 61: UK volume sales of cheese, best- and worst-case forecast, 2019-24
APPENDIX – LAUNCH ACTIVITY AND INNOVATION 
Figure 62: Share of new product launches in the cheese market, by launch type, 2015-19
Figure 63: Share of new product launches in the cheese market, by the top 20 claims, 2015-19
Figure 64: Share of new product launches in the cheese market, by claim category, 2015-19
APPENDIX – ADVERTISING AND MARKETING ACTIVITY
Figure 65: Total above-the-line, online display and direct mail advertising expenditure on cheese, by category (sorted by 2018), 2015-19
Figure 66: Total above-the-line, online display and direct mail advertising expenditure on cheese, by media type (sorted by 2018), 2015-19
Figure 67: Total above-the-line, online display and direct mail advertising expenditure on cheese, by top 10 brands (sorted by 2018), 2015-19

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