The cheese market is worth £2.4bn. It is growing at 2.8%, performing better than total dairy, which is growing at 0.8%. Growth is driven almost entirely by shoppers buying more per trip, on average 4.6% roughly 0.5kg.
Unsurprisingly, volume-based promotions are boosting volume sales. More than 65% of branded Cheddar volume was sold on promotion and retailers have increased multibuy promotions while offering fewer temporary price reductions, thus increasing volume sold.
Cheddar still claims nearly 55% of the market in value terms, but Continental, processed and soft white are driving market growth, mainly through new shoppers.
While performance of block cheese is relatively static, sliced and grated formats are thriving. Convenience now claims more than 10% market value. Tesco, Sainsbury's, Morrisons and Waitrose all outperform the market. Most of the main retailers, with the exception of M&S and independents, overtrade in cheese.
Focus On Cheese