Cheese - US

Report description

Increasing global attention to the environmental impacts of the foods people eat has not bypassed the cheese industry, with efforts seen for environmentally friendly packaging, organic and ethical production, as well as more sustainable processing in manufacturing. The environmental impact of animal protein consumption has increased as small, family farms have been replaced by centralized operations, or "factory farms," that house and process thousands of animals in tight and unsanitary conditions. A lack of environmental controls in many states has contributed to the growth of factory farms in recent years.

According to the Environmental Defense Fund Scorecard, every year almost 2 trillion pounds of animal waste are produced nationally from 1.5 billion cattle, hogs, poultry, and sheep.

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer data
Advertising clips
Abbreviations and terms
Abbreviations
Terms

EXECUTIVE SUMMARY
Cheese sales a victim of the economy
A diverse market results in varied segment results
Supermarkets increase focus on private label and specialty cheese
Kraft Foods the leading company, but private label dominates overall
Innovators zero in on market trends
Marketing efforts as distinctive as brand personalities
Today’s cheese consumer

INSIGHTS AND OPPORTUNITIES
“Green” cheese
Better for the planet (BFP)
Source-verified: Organic, humane, and local

Figure 1: Organic food and cheese household usage, by age, February 2010-March 2011

Vegetarian/flexitarian
Stronger flavors gain favor

Figure 2: Cheese purchasing occasions and attitudes, by age, June 2011

INSPIRE INSIGHTS
Trend: Guiding Choice
Trend: Snack Society

MARKET SIZE AND FORECAST
Key points
Market sales reflect diverse nature of cheese category
Sales and forecast of cheese

Figure 3: Total U.S. retail sales of cheese, at current prices, 2006-16
Figure 4: Total U.S. retail sales of cheese, at inflation-adjusted prices, 2006-16

Fan chart forecast

Figure 5: Fan chart forecast of cheese, 2006-16

Walmart sales

MARKET DRIVERS
Overview
Economic factors
Disposable personal income limits spending

Figure 6: Real disposable income, 2007-11

Consumer confidence tumbles in the face of a double-dip recession

Figure 7: Consumer sentiment index, January 2007-July 2011
Figure 8: Unemployment and underemployment rate, January 2007-July 2011

Household income impacts cheese consumption

Figure 9: Personal consumption of cheese, by household income, June 2011

Demographics: Population growth for older generations and Hispanics

Figure 10: Population, by age, 2006-16
Figure 11: Population by generation, 2011
Figure 12: Personal consumption of cheese, by age, June 2011
Figure 13: Population, by race and Hispanic origin, 2006-16

COMPETITIVE CONTEXT
Key points
Global demand forces rising cheese prices

Figure 14: Consumer Price Indexes for all urban consumers, U.S. average (not seasonally adjusted), 2008-June 2011

Consumers continue to cut back

Figure 15: Private label purchasing behavior, by household income, June 2011

SEGMENT PERFORMANCE
Key points
Modest sales gains in 2011 keep category in the black

Figure 16: Total U.S. retail sales of cheese, by segment, 2009-11

SEGMENT PERFORMANCE—NATURAL CHEESE
Key points
Natural cheese rallies following sales slump
Sales and forecast of natural cheese

Figure 17: Total U.S. retail sales and forecast of natural cheese, 2006-16

SEGMENT PERFORMANCE—PROCESSED CHEESE
Key points
Processed cheese sales flat, yet opportunity exists to grow segment
Sales and forecast of processed cheese

Figure 18: Total U.S. retail sales and forecast of processed cheese, at current prices, 2006-16

SEGMENT PERFORMANCE—CREAM CHEESE/CREAM CHEESE SPREAD
Key points
Cream cheese sees success via versatility
Sales and forecast of cream cheese/cream cheese spread

Figure 19: Total U.S. retail sales and forecast of cream cheese/cream cheese spread, at current prices, 2006-16 34

SEGMENT PERFORMANCE—COTTAGE CHEESE
Key points
Cottage cheese struggles to maintain its dairy snack position
Sales and forecast of cottage cheese

Figure 20: Total U.S. retail sales and forecast of cottage cheese, at current prices, 2006-16

RETAIL CHANNELS
Key points
Supermarkets dominate, growing market share and sales

Figure 21: Total U.S. retail sales of cheese, by channel, 2009 and 2011
Figure 22: Supermarket/food stores’ sales of cheese, at current prices, 2006-11
Figure 23: Supercenter and warehouse club cheese sales, at current prices, 2006-11
Figure 24: In-store deli cheese sales, at current prices, 2006-11

RETAIL CHANNELS—NATURAL SUPERMARKETS
Key points
Organic products significant boost for natural retailers
Sales of spreads and dips in the natural channel

Figure 25: Natural supermarket cheese sales, at current prices, 2009-11
Figure 26: Natural supermarket cheese sales, at inflation-adjusted prices, 2009-11

Natural channel sales by segment

Figure 27: Natural supermarket cheese sales, by segment, 2009 and 2011

Brands of note
Natural channel sales by organic content

Figure 28: Natural supermarket cheese sales, by organic content, 2009 and 2011

LEADING COMPANIES
Key points
Private label the leading collective, Kraft the leading brand
FDMx sales of cheese by manufacturer

Figure 29: Manufacturer FDMx cheese sales, 2010 and 2011

BRAND SHARE—NATURAL CHEESE
Key points
Private label and smaller brands see sales successes
Manufacturer and brand sales of natural cheese

Figure 30: Selected FDMx brand sales of natural cheese, 2010 and 2011

BRAND SHARE—PROCESSED CHEESE
Key points
Kraft Foods’ flat sales keep segment sales in check
Manufacturer and brand sales of processed cheese

Figure 31: Selected FDMx brand sales of processed cheese, 2010 and 2011

BRAND SHARE—CREAM CHEESE/CREAM CHEESE SPREAD
Key points
Kraft dominates and grows segment with promotional efforts
Manufacturer and brand sales of cream cheese/cream cheese spread

Figure 32: Selected FDMx brand sales of cream cheese/cream cheese spread, 2010 and 2011

BRAND SHARE—COTTAGE CHEESE
Key points
Private label holds a commanding share of cottage cheese
Manufacturer and brand sales of cottage cheese

Figure 33: Selected FDMx brand sales of cottage cheese, 2010 and 2011

INNOVATIONS AND INNOVATORS
Key points
Launches down during the recession

Figure 34: Cheese product launches, by subcategory, 2007-11
Figure 35: Cheese product launches, by top claims, 2007-11
Figure 36: Cheese product launches, by top companies/brands, 2007-11

Product innovations
Private label continues BFY push
Organic releases reflect recognition of sales growth
Added flavors and variety blends up the Hispanic appeal
Vegetarian products gain appeal
String cheese broadens appeal

MARKETING STRATEGIES
OVERVIEW
Brand analysis: Kraft

Figure 37: Kraft Shredded Naturals television ad, 2011

Partnership with TerraCycle
Kraft Touch of Philadelphia

Figure 38: Brand analysis of Kraft Touch of Philadelphia, 2011
Figure 39: Kraft/Touch of Philadelphia television ad, 2011

Brand analysis: Tillamook

Figure 40: Brand analysis of Tillamook, 2011
Figure 41: Tillamook television ad, 2011
Figure 42: Tillamook television ad, 2011

Brand analysis: Sargento Foods Inc.

Figure 43: Brand analysis of Sargento, 2011
Figure 44: Sargento Artisan Blends television ad, 2010
Figure 45: Sargento Slices television ad, 2010

Promotional efforts can help to reach younger consumers
Sampling

Figure 46: Cheese purchasing occasions and attitudes, by age, June 2011

Social media

HOUSEHOLD USAGE
Key points
Cooking cheese use on the rise

Figure 47: Household consumption of cheese, February 2010 and June 2011
Figure 48: Household consumption of cheese, June 2011

Kids’ usage of cheese
Cheese purchasing for kids in household

Figure 49: Cheese purchasing for kids in household, by age and household income, June 2011

Kids’ usage of cheese

Figure 50: Kids’ cheese usage, by age, February 2010-March 2011

Household usage, by cheese type
American cheese

Figure 51: American cheese household usage, by household income, February 2010-March 2011

Natural or imported cheese

Figure 52: Natural or imported cheese household usage, by household income, February 2010-March 2011

Cream cheese

Figure 53: Cream cheese household usage, by household income, February 2010-March 2011

Cottage cheese

Figure 54: Cottage cheese household usage, by age, February 2010-March 2011

Spread cheese

Figure 55: Spread cheese household usage, by household income, February 2010-March 2011

POPULAR CHEESE CONSUMPTION
Key points
Cheddar and mozzarella remain the favorites

Figure 56: Popular cheese consumption, by age, June 2011
Figure 57: Popular cheese consumption, by household income, June 2011
Figure 58: Popular cheese consumption, by region, June 2011

CONSUMPTION OCCASIONS
Key points
Sandwiches, cooking, and with crackers/bread top cheese uses

Figure 59: Cheese consumption occasions, by age, June 2011
Figure 60: Cheese consumption occasions, by household income, June 2011

FACTORS THAT MATTER TO CHEESE BUYERS
Key points
Type of cheese leading factor but shifting trends are evident

Figure 61: Factors that matter to cheese buyers, by gender, February 2010 and June 2011
Figure 62: Factors that matter to cheese buyers, by age, June 2011
Figure 63: Factors that matter to cheese buyers, by household income, June 2011

PURCHASE OCCASIONS FOR CHEESE, BY FORM
Key points
Slices most popular, followed by shredded

Figure 64: Purchase occasions for cheese, by form, June 2011
Figure 65: Purchase occasions for cheese, by form, by age, June 2011
Figure 66: Purchase occasions for cheese, by form, by household income, June 2011

RETAIL PURCHASING AND PRIVATE LABELS
Key points
Outlets where consumers buy cheese

Figure 67: Outlets where consumers buy cheese, June 2011
Figure 68: Outlets where consumers buy cheese, June 2011

Private label purchasing behavior

Figure 69: Private label purchasing behavior, by age, June 2011

PURCHASING OCCASIONS AND ATTITUDES
Key points
In-store sampling drives new variety trial

Figure 70: Cheese purchasing occasions and attitudes, by age, June 2011
Figure 71: Cheese purchasing occasions and attitudes, by household income, June 2011

IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Personal consumption of cheese

Figure 72: Personal consumption of cheese, by race/Hispanic origin, June 2011

Popular cheese consumption

Figure 73: Popular cheese consumption, by race/Hispanic origin, June 2011

Factors that matter to cheese buyers

Figure 74: Factors that matter to cheese buyers, by race/Hispanic origin, June 2011

Purchase occasions for cheese, by form

Figure 75: Purchase occasions for cheese, by form, by race/Hispanic origin, June 2011

Retail purchasing

Figure 76: Outlets where consumers buy cheese, by race/Hispanic origin, June 2011

Purchasing occasions and attitudes

Figure 77: Cheese purchasing occasions and attitudes, by race/Hispanic origin, June 2011

CUSTOM CONSUMER GROUPS
Key points
Personal consumption

Figure 78: Personal consumption of cheese, by gender and age, June 2011

Popular cheese consumption

Figure 79: Popular cheese consumption, by gender and age, June 2011

Consumption occasions

Figure 80: Cheese consumption occasions, by gender and age, June 2011

Factors that matter to cheese buyers

Figure 81: Factors that matter to cheese buyers, by gender and age, June 2011

Cheese purchasing occasions and attitudes

Figure 82: Cheese purchasing occasions and attitudes, by gender and age, June 2011

SYMPHONYIRI/BUILDERS—KEY HOUSEHOLD PURCHASE MEASURES
NATURAL CHEESE
OVERVIEW OF NATURAL CHEESE
NATURAL SHREDDED CHEESE
Consumer insights on key purchase measures—natural shredded cheese
Brand map

Figure 83: Brand map, selected brands of natural shredded cheese buying rate, by household penetration, 2010