Recipe cheeses, such as mozzarella and halloumi, have also been top performers during the last year, with sales growing by 16 percent, which is also ahead of total cheese and everyday cheese.1 Over the last few months, however, we have started to see some decline in this trend, as shoppers revert to pre-lockdown behaviours.2 However, speciality and recipe cheeses are declining at a slower rate, meaning some of this momentum will be maintained versus the total cheese category. We expect speciality cheeses in particular to continue faring well.
During the last several weeks, we have seen value decline by 6.2 percent year on year, compared to the massive growth seen in 2020; again this can be attributed to the lifting of lockdown restrictions. However, the overall cheese category is now larger than pre-lockdown levels with 52 week ending (w/e) sales growth at 17.9 percent and four w/e growth at 12.7 percent vs the same periods in 2019.
New cheese trends and innovations
There are several key consumer trends shaping the cheese category at the moment, which is why understanding a shopper’s reasons for purchasing is vital. At Lactalis UK & Ireland, we pride ourselves on placing the consumer at the heart of everything we do, hence why our cheese brands, Galbani, Président and Seriously, are market leaders. 
One of the most prominent cheese trends is speciality cheeses which, over the past 12 months as a result of lockdowns and restrictions, have been popular with consumers looking to upgrade everyday occasions with affordable luxuries. Consequently, the speciality cheese category has grown by 12 percent year on year – way ahead of everyday cheese at 1.6 percent and total cheese at 6.3 percent.2 The top performers in this category include speciality cheddar, mozzarella, goat’s cheese, as well as British and continental blue cheeses. In particular, brie has seen a rise of 7.3 and camembert five percent year-on-year (YOY).
The trend for meat-free occasions is also in growth, with many now reducing meat consumption and looking for alternative tasty protein choices.3 Therefore, there is a significant opportunity for the cheese category to assist with experimental flexitarianism. As a result, cheese alternatives and baking cheeses have increased in popularity with consumers, growing by 17.6 and 43.2 percent in value sales YOY respectively.
Cheese alternatives are mainly appealing to pre-family shoppers who are flexitarians, evidenced by the fact that 93 percent of them have also bought dairy cheese over the last year. Baking cheese however is bought by all life stages but does over‑index with more affluent households and has also benefitted from flexitarianism, as some of these products can be served as a meat replacement.
During the pandemic, consumers increasingly cooked their meals from scratch. Sales of continental cheeses, which can be used in recipes, have benefitted from this trend. Of particular note in this category is burrata, which is performing particularly well with a 73 percent value sales growth YOY. Burrata, a type of mozzarella made in the Puglia region of Italy, is filled with cream. Galbani Burrata, which is currently worth £2.3 million and is the main contributor to growth for this cheese, is outperforming the category with 72 percent value sales and 67 percent volume sales YOY.
The alternative cheese impact
Cheese alternatives are bringing in more incremental sales to the cheese market than they are taking away, with 63 percent of cheese alternatives growth estimated to be added to the category, while only 37 percent was ‘stolen’ from dairy cheese over the last year.
From the volume that was taken away from the rest of the category, 60 percent came from cheddar and 21 percent from soft white cheese, with the rest being split among other cheese categories. Interestingly, hot eating cheese has actually gained, switching from cheese alternatives over the last year.4
Drivers and longevity
Some of the trends in the cheese category are being driven by changing consumer perceptions around health. For example, a significant percentage of UK consumers are actively trying to cut down on their meat consumption and cheese is increasingly being recognised as a good source of calcium and protein.
Cheese alternatives are mainly appealing to pre-family shoppers who are flexitarians
However, indulgence and social media have also played an important role as evidenced by the growth of burrata and others. While lockdown accelerated both the cheese alternatives and baking cheese trends, we expect these to continue their growth as consumers become more familiar with new cheese types and formats.
How Lactalis is approaching the market and such trends
We have recently relaunched our cheese category strategy, which is focused around increasing consumption through changing consumer behaviour. Cheese is already the seventh most purchased category in food and drink; however, we want to establish cheese as a growth driver for the wider industry by creating more reasons to purchase. We have used consumer insights about how people use and enjoy cheese to inform our strategy, and with penetration in cheese already very high, we are looking to increase frequency of purchase.
With a significant foodservice portfolio, we are also very aware of how the trends impacting hospitality can affect the way people enjoy food at home. Therefore, we are always looking to capitalise on food service trends that might be suitable for retail as early as possible. Examples of this innovation are Président a la Carte Crispy Bakes with Brie and Seriously Crispy Nuggets, which are now worth £1.1 million after their first year of sales. We developed these products to capitalise on the baking cheese and flexitarian trends, as they are an excellent option for those looking for a meat replacement.
In line with the trend for recyclable packaging, we expanded our Galbani range earlier this year with the UK’s first buffalo mozzarella in a recyclable carton. In addition, while most of our Seriously Spreadable packaging has been recyclable for years, we recently made changes to ensure all the tubs in the range can be widely recycled and to make this clearer for consumers. We continue to work on package recyclability as one of the top global priorities for the company.
The future of cheese
We foresee continued growth in the cheese market over the coming years, largely driven by the previously mentioned trends. New formulations and formats will make it even easier for consumers to choose cheese as a staple food with the potential to improve their everyday meals and snacks. However, competition will also become more intense as retailers continue to look for ways to simplify their supply chains and rationalise their range, making it even more important for brands to demonstrate the value they bring to consumers and how they are different from others.
References
- Over the last 12 weeks, recipe declines -6.1 percent, speciality -0.4 percent, vs. everyday at -13 percent and total cheese at -8.2 percent. Kantar 52 w/e 12th of July 2021
- Kantar 52w/e 12th of July 2021
- Mintel – the future of cheese 2020
- Kantar 52w/e 11 July 2021/own calculations (incrementality % is calculated from Kantar volume source of change)
Heloise Le Norcy-Trott
Heloise is Group Marketing Director for Lactalis UK & Ireland.
