Perhaps unsurprisingly, the cost-of-living crisis, inflation and Brexit have impacted how frequently consumers are buying cheese, but volume sales of branded cheese are now returning to growth ahead of private label.
Branded cheese accounts for 40% of total cheese value sales, with it being worth a total of £1.2 billion, while private label accounts for 60% and is worth £1.8 billion, growing 4% year-on-year.
Heloise Le Norcy-Trott, group marketing director for dairy supplier Lactalis UK&I, explains: “After two years of contracted volume sales the cheese category has an opportunity to regain momentum. Looking ahead to 2025 and beyond, these are the cheese trends we think retailers should be aware of…”
- Premiumisation driving growth Even though grocery prices are increasing, and consumers have been choosing to buy fewer units of cheese, premiumisation still has the potential to drive market growth. This is likely to come from a combination of new and old consumer habits – exploring new ways of enjoying cheese, like enjoying hot and using it in different recipes, and rediscovering varieties they previously enjoyed.
- Power of protein Another trend is consumers seeking out cheese for its nutritional benefits. For example, cheese is packed full of essential dairy nutrients, such as protein. Unlike some plant-based proteins, cheese contains all of the nine essential amino acids (the building blocks of protein) that our bodies need.
- Some like it hot Hot eating is currently one of the highest grossing cheese categories, offering quick and tasty hot meal-time solutions, and another area where retailers can encourage premiumisation.
- Increased use of cheese as a meat alternative Cheese is a major recipe ingredient in many popular meat-free dishes, while hot eating cheese products provide consumers with a tasty vegetarian meat replacement they can enjoy at any time – while also appealing to consumers trying to reduce their meat intake, as an alternative to meat protein.
- Greater personalisation As shoppers recognise the recipe potential for cheese, expect greater creativity in its use in planned dishes, and making use of leftover cheese. In addition, TikTok and similar social media will increasingly impact people’s cheese tastes and usage. With the demand for affordable indulgence driving the category, we can expect a blurring of the distinction between speciality, every day, and recipe cheese, and cheese lovers ‘mixing it up’ with treats like brie on toast.
- A taste of the world Cheese products combined with flavours like chive, onion, garlic, truffle and dill are increasing in popularity. The implications for stores and suppliers too are that they should look across the dairy aisle for inspiration for tomorrow’s new products. They should think too about reducing additives and look for new consumer needs around seasonality or flavours.
As well as the above, Heloise expects regionality and sustainability to continue affecting shopper purchases into 2025. “The next twelve months are set to be an exciting opportunity for everyone involved to seize growing momentum, innovate and grow the UK cheese market,” she says.
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