Chapter 1 Executive Summary
Introduction
Difference Between Natural and Specialty Cheese
Natural Cheese
Specialty Cheese
Products Outside Scope
Product Classifications
The Products
U.S. Production of Natural Cheese Continues to Grow
Table 1-1 Total U.S. Production of Natural Cheese by Variety, 2008-2014(in millions of pounds)
The Market
U.S. Retail Sales of Natural and Specialty Cheese at $17.4 Billion in 2015
Figure 1-1 U.S. Retail Dollar Sales of Natural and Specialty Cheeses, 2011–2015 (in millions)
Sales by Retail Channel
Market Forecast
Figure 1-2 Projected U.S. Retail Dollar Sales of Natural and Specialty Cheeses, 2015–2020 (in millions)
The Marketers
Kraft Ahead by Wide Margin in Fragmented Market
Figure 1-3 Retail Dollar Share for Leading Mass Marketers of Natural and Specialty Cheese, 2012 vs. 2015 (percent)
Marketing and New Product Trends
Taste and Experiences
Health and Nutrition
Snacking
Retail Trends
Private Label Store Brands
Table 1-2 Selected Private-Label Food Brands with Natural Cheese, 2016
Supermarkets Continue to Upgrade Cheese Offerings
Cheesemongers Are Rock Stars of Specialty Cheese
Retailers Differ for Natural and American Processed
Cheese Consumers
Foodservice Trends
Cheese in Foodservice
Mozzarella Most Used Cheese in Foodservice
Retail Packaged Foods
The Consumer
Nearly All American Adults Eat Cheese
Almost 30% of Adults Report Eating More Cheese
Millennials, Gen Xers Drive Higher Cheese Consumption
Figure 1-4 Self-Reported Current Level of Cheese Consumption
Compared to a Few Years Ago, 2016 (percent)
Natural/Imported Cheese Increasing, Processed Cheese
Decreasing
Table 1-3 Household Usage Rates: Natural or Imported Cheese vs.
American Processed Cheese, 2005-2015 (percent)
Global Overview
Global Growth Driven by Emerging Markets
Cheese Consumption
Per Capita Consumption
Cheese Imports by Country
Global Competitive Landscape
Trends
Chapter 2 The Products
Introduction
Difference Between Natural and Specialty Cheese
Natural Cheese
Specialty Cheese
Products Outside Scope
Product Classifications
Regional Classifications
Classifications by Consistency
Classifications by Cure
Other Industry Descriptors
Table 2-1 Selected Industry Descriptors of Natural and Specialty Cheese
Products by Market
Retail
Foodservice
Food Processing
Natural Cheese Format Classifications by IRI
Table 2-2 Natural Cheese Format Classifications by IRI
U.S. Cheese Production
U.S. Production of Natural Cheese Continues to Grow
Table 2-3 Total U.S. Production of Natural Cheese by Variety, 2008-2014(in millions of pounds)
Figure 2-1 Share of Total U.S. Production by Natural Cheese Variety,2014 (percent)
Figure 2-2 Share of Total U.S. Production by Natural Cheese Variety,2008 (percent)
U.S. Process Cheese Production Flat Over Last Six Years
Table 2-4 Total U.S. Production of Process Cheese Products, 2008-2014(in millions of pounds)
85% of U.S. Cheese Production Comes from 11 States
Figure 2-3 U.S. Production of Cheese by States, 2014 (percent share)
Chapter 3 The Market
U.S. Retail Sales of Natural and Specialty Cheese at $17.4 Billion in 2015
Figure 3-1 U.S. Retail Dollar Sales of Natural and Specialty Cheeses,2011–2015 (in millions)
Sales Growth Spiked in 2014
Table 3-1 Retail Dollar Sales of Natural and Specialty Cheeses,2011–2015 (in millions)
Cheese Prices Volatile
Figure 3-2 Average Yearly Price of 40-Pound Cheddar Block Cheese,2004-2015 (dollars, average per pound)
Factors Affecting Market Growth
Lagging Economy Impacts Consumer Spending
Figure 3-3 Change in Real GDP and Personal Consumption
Expenditures, 2007–2015 (percent change)
Median Incomes Down from 2007 High
Figure 3-4 Real Median Household Income, 2004-2014 (dollars)
Sluggish Growth of Household Formations
Figure 3-5 Number of U.S. Households, 2005-2015 (millions)
Sales by Retail Channel
Figure 3-6 Projected Share of Natural and Specialty Cheese Dollar Sales by Retail Channel, 2016 (percent)
Table 3-2 Dollar Sales by Retail Channel of Natural and Specialty Cheeses, 2015 and 2016 Projected (millions)
Product Segment Sales
Figure 3-7 Dollar and Volume Share of Natural Cheese by Segment,2015 (percent)
Table 3-3 IRI-Tracked Sales of Natural Cheese by Segment, 2014-2015(dollar, volume sales in millions; average price per pound)
Organic Cheese Sales Continue to Boom
Table 3-4 Sales of Organic Natural Cheese, 2012-2020(dollars million, percent)
Table 3-5 IRI-Tracked Sales of Selected Organic Cheese, 2014-2015(dollars in millions, percent)
Table 3-6 IRI-Tracked Sales of Selected rBGH/rBST-Free But Not
Organic Certified Cheese, 2014-2015 (dollars in millions, percent)
Processed Cheese Sales Continue to Decline
Table 3-7 IRI-Tracked Sales of Processed Cheese, 2014-2015(dollar, unit and volume sales; millions)
Market Forecast
Figure 3-8 Projected U.S. Retail Dollar Sales of Natural and Specialty Cheeses, 2015–2020 (in millions)
Chapter 4 The Marketers
Kraft Ahead by Wide Margin in Fragmented Market
Figure 4-1 Retail Dollar Share for Leading Mass Marketers of Natural and
Specialty Cheese, 2012 vs. 2015 (percent)
Table 4-1 IRI-Tracked Sales of Natural Cheese Marketers, 2014-2015(millions of dollars, percent)
Marketer Sales by Product Segment
Private Label Controls Nearly 60% of Shredded Segment
Table 4-2 IRI-Tracked Sales of Natural Shredded Cheese Marketers,2014-2015 (millions of dollars, percent)
Chunks Segment Fragmented with Kraft Leading
Table 4-3 IRI-Tracked Sales of Natural Chunks Cheese Marketers,2014-2015 (millions of dollars, percent)
Sargento Leads Slice Segment by Wide Margin
Table 4-4 IRI-Tracked Sales of Natural Slices Cheese Marketers,2014-2015 (millions of dollars, percent)
Saputo Leads String/Stick Segment
Table 4-5 IRI-Tracked Sales of Natural String/Stick Cheese Marketers,2014-2015 (millions of dollars, percent)
Kraft Controls a Third of Crumbled Segment
Table 4-6 IRI-Tracked Sales of Natural Crumbled Cheese Marketers,2014-2015 (millions of dollars, percent)
Sales Shift From Refrigerated to Shelf Stable Grated Cheese
Table 4-7 IRI-Tracked Sales of Natural Grated Cheese Marketers,2014-2015 (millions of dollars, percent)
Lactalis Leads Ricotta Segment
Table 4-8 IRI-Tracked Sales of Natural Ricotta Cheese Marketers,2014-2015 (millions of dollars, percent)
BelGioioso Best Performer in All Other Forms Segment
Table 4-9 IRI-Tracked Sales of Natural All Other Forms Cheese
Marketers, 2014-2015 (millions of dollars, percent)
Private Label Brands Control Cube Segment
Table 4-10 IRI-Tracked Sales of Natural Cube Cheese Marketers,2014-2015 (millions of dollars, percent)
Private Label
Table 4-11 Private Label Share of Sales by Natural Cheese Segment
and Total Market, 2012 vs. 2015 (percent)
Table 4-12 Selected Private-Label Food Brands with Natural Cheese,2016
Competitive Profiles
Kraft Heinz Company
Table 4-13 Kraft Cheese Products
Sargento Foods
Table 4-14 Sargento Cheese Products
Saputo Inc.
Table 4-15 Saputo Cheese Products
Tillamook County Creamery
Table 4-16 Tillamook County Creamery Cheese Products
Crystal Farms
Table 4-17 Crystal Farms Cheese Products
Lactalis American Group
Table 4-18 Lactalis Cheese Products
BelGioioso Cheese
Table 4-19 BelGioioso Cheese Products
Agri-Mark Inc.
Table 4-20 Agri-Mark Inc. Cheese Products
Dairy Farmers of America
Table 4-21 Dairy Farmers of America Cheese Products
Bel Brands USA
Table 4-22 Bel Brands Cheese Products
Schreiber Foods
Table 4-23 Schreiber Foods Cheese Products
Cacique
Table 4-24 Cacique Cheese Products
Organic Valley
Table 4-25 Organic Valley Cheese Products
Chapter 5 Marketing and New Product Trends
Marketing Trends
Sargento Chopped at Home Challenge
Taste and Experiences
Frigo Cheese Heads Get Robust
Illustration 5-1: Frigo Cheese Heads Robust Flavors
Kraft Raising the Heat
Illustration 5-2: Kraft’s Hot Cheeses
Taste for Peppery Cheeses
Illustration 5-3: Peppery Cheeses
Sliced Blue Cheese That Melts
Illustration 5-4: Castello Burger Blue Cheese
Triple Play Uses Three Different Milks
Illustration 5-5: Hook’s Cheese Triple Play
Garlic Makes Cheese More Assertive
Illustration 5-6: Crystal Farms Garlic Jack Cheese
Bacon Makes Everything Taste Better
Illustration 5-7: Bacon-Flavored Cheeses
Truffle Elevates Cheese
Illustration 5-8: Truffle Enhanced Cheese
Coconut Adds Exotic, Tropical, Flavor
Illustration 5-9: Coconut-Flavored Cheeses
Specialty Cheeses Infused With Florals, Herbs, & Spices
Illustration 5-10: Specialty Cheeses Infused with Flavor
Cheesorizo
Illustration 5-11: Cheesorizo
Artisanal Cheese Keeps Growing
La Bottega di BelGioioso
Illustration 5-12: La Bottega di BelGioioso Artisanal Cheeses
Cabot’s Founder Collection
Illustration 5-13: The Cabot Founder Collection
Tillamook 4-Year Vintage Cheddar
Illustration 5-14: Tillamook 4-Year Vintage Cheddar
Authenticity
Prairie Sunset Cheese
Illustration 5-15: Emmi Roth Prairie Sunset
Fromager d’Affinois Campagnier Represents the “Terroir” of
France
Illustration 5-16: Fromager d’Affinois Campagnier
Scottish Dairy Brand
Illustration 5-17: Scottish Dairy Brand
Restaurant Flavor at Home
Illustration 5-18: Roth Ultimates
Health and Nutrition
Illustration 5-19: New U.S. Government Dietary Guidelines
Milk Source Becoming More Important
Artificial Hormone Free
Illustration 5-20: Nuestro Queso rBST-Free Milk-Based Products
Grassmilk Cheese
Illustration 5-21: Tallgrass Reserve Pasture-Grazed Cow Milk Cheese
Illustration 5-22: Annie’s Organic Grass Fed Macaroni & Cheese
Raw Milk
Illustration 5-23: Raw Shredded Cheddar Cheese
Organic Continues to Gain
Illustration 5-24: Kingdom Organic Cheddar
Illustration 5-25: Applegate Natural And Organic Lunch Kit
The Thinner the Better
Illustration 5-26: Thinner Sliced Cheese
Dairy-Free Cheese
Table 5-1 IRI-Tracked Sales of Daiya’s Dairy-Free Cheese Products,
2014-2015 (dollars, percent)
Snacking
String Whips and Others from Burnett Dairy
Illustration 5-27: Burnett Dairy New Snacking Cheeses
Minis Are Big
Illustration 5-28: Portion Pack Mini Cheeses
More Bite-Sized Entries for Portion Control
Illustration 5-29: Bite-Sized Cheese
Cheese Shapes Make Snacking Fun
Illustration 5-30: Horizon Cheese Shapes
Cow Candy
Illustration 5-31: Cow Candy
Cheese Curds for Snacking
Illustration 5-32: Cheese Curds
Cheese Paired with Other Products for Snacking
Sargento’s Balanced Breaks
Illustration 5-33: Sargento Balanced Breaks
Borden GOOD2GETHER
Illustration 5-34: Borden Cheese GOOD2GETHER Snacks
Cheese Dippers
Illustration 5-35: Cheese Dippers
Pro2snax
Illustration 5-36: Pro2snax
Natural Cheese Taken into the Snack Aisle
Mr. Cheese O’s
Illustration 5-37: Sonoma Creamery’s Mr. Cheese O’s
Cheese Whisps & Crisps
Illustration 5-38: Cheese Whisps & Crisps
Nothing but Cheese
Illustration 5-39: Nothing but Cheese
Packaging
Stand-up Pouches
Illustration 5-40: Stand-Up Pouch Packaging
Resealable, Flexible Cheese Packaging for Club Stores
Illustration 5-41: BelGioioso’s Resealable Club Store Packaging
Tillamook’s Online Community
Illustration 5-43: Tillamook Co-op Community
Wisconsin Cheese Cupid
Illustration 5-44: Wisconsin Cheese Cupid
Chapter 6 Retail Overview
Wide Variety of Retail Outlets Sell Natural and Specialty
Cheese
Table 6-1 Characteristics of Retail Channels That Sell Natural and
Specialty Cheeses, 2015
Sales by Retail Channel
Figure 6-1 Projected Share of Natural and Specialty Cheese Dollar Sales
by Retail Channel, 2016 (percent)
Table 6-2 Dollar Sales by Retail Channel of Natural and Specialty
Cheeses, 2015 and 2016P (millions)
Private Label Store Brands
Table 6-3 Private Label Share of Sales by Natural Cheese Segment and
Total Market, 2012 vs. 2015 (percent)
Table 6-4 Selected Private-Label Food Brands with Natural Cheese, 2016
New Organic Line for Private Label
Illustration 6-1: Thought Organics Private Label Cheese Line
Meijer’s True Goodness
Illustration 6-2: Meijer’s True Goodness Cheeses
Whole Foods Launching New Store Format
Illustration 6-3: Whole Foods New Store Format
Supermarkets Continue to Upgrade Cheese Offerings
Wegmans Opens Cheese Caves
Illustration 6-4: Wegmans Cheese Caves
Cheese Shoppe Expansion at Stew Leonard’s
Illustration 6-5: Stew Leonard’s Cheese Shoppe
Grocers Partner with Well-Known Independent Cheese Shops
Illustration 6-6: Murray's Cheese Shop in Kroger Store
Retailers Promote Local Producers
New York City Whole Foods Stores Sell Exclusive Local Cheese
Illustration 6-7: Crown Finish Caves Cheese-Aging Facility
Metcalfe’s Showcases Wisconsin-made Cheese
Illustration 6-8: Metcalfe’s Cheese Department
Target Partners with “The Fabulous Beekman Boys” for
“Farm-to-Shelf” Line
Illustration 6-9: Beekman Boys 1802 Farm Pantry
Retailers Promote International Products
Mariano’s Expands International Offerings with Quebec
Partnership
Illustration 6-10: Mariano’s Partners with Quebec
Kroger’s Savor World Flavor: Taste of Italy
Illustration 6-11: Kroger’s Savor World Flavor: Taste of Italy
H-E-B Also Inspired by Italy
Illustration 6-12: H-E-B Showcases Italian Products
Cheesemongers Are Rock Stars of Specialty Cheese
Illustration 6-13: Whole Foods Cheesemonger
Where Cheese Consumers Shop for Cheese
Retailers Differ for Natural and American Processed Cheese
Consumers
Table 6-5 Where Natural/Imported and Processed Cheese Consumers
Shopped in Last Four Weeks, 2015 (index)
Chapter 7 Foodservice Overview
Overview
Cheese in Foodservice
Mozzarella Most Used Cheese in Foodservice
Specialty Cheese Gaining but Mozzarella Tops for Restaurant
Pizza
Table 7-1 Menu Penetration of Pizza Cheeses by Restaurant Segments,2015 (% offering)
Retail Packaged Foods
Frozen Pizza Leading Market for Cheese
Frozen Dinners and Entrées
Illustration 7-1: Products Call Out Real Cheese
Frozen Appetizers and Snack Rolls
Breakfast Big Business for Cheese
Illustration 7-2: The Den by Denny’s
The U.S. Restaurant and Foodservice Industry
Table 7-2 U.S. Restaurant Industry Sales, 2015 Projected (in billions)
U.S. Chain Restaurants
Table 7-3 Leading Chain Restaurants in the U.S., 2014 (in millions)
Bleu Cheese Has Highest Menu Penetration
Table 7-4 Menu Penetration of Cheeses by Restaurant Segments, 2015
(% offering)
Cheese Suppliers
Trends
More Cheese Please
Illustration 7-3: Taco Bell Quesalupa
Saputo Introduces Bold-flavored Cheese in Larger Size for
Foodservice
Illustration 7-4: Saputo’s Great Midwest Cranberry Cheddar Cheese
7-Eleven Adds New Sandwich Melts
Illustration 7-5: 7-Eleven Sandwich Melts
QuickChek Features Cheese in “Tacos” and Bowls
Illustration 7-6: QuickChek “Tacos” and Bowls
Specialty Cheeses Upgrade Menu Items
Illustration 7-7: Starbucks New Sandwiches
Emmi Roth USA Launches Roth Natural Melt Creamy Fontina
Illustration 7-8: Emmi Roth USA Natural Melt Creamy Fontina
Sharky’s Uses rBGH-free cheese
Illustration 7-9: Sharky’s Ingredients
Portable Frozen Meal, Breakfast Options Feature Cheese
Illustration 7-10: EVOL CUPS
Emerging Restaurant Concepts
Chapter 8 The Consumer
Sources
Nearly All American Adults Eat Cheese
Table 8-1 Adults Who Eat Cheese, 2016 (percent)
Almost 30% of Adults Eating More Cheese
Figure 8-1 How Much Cheese Adults Are Eating Compared to a Few
Years Ago, 2016 (percent)
Consumers Eating More Cheese for Reasons Beyond
Taste
Table 8-2 Selected Self-Reported Consumer Motivations for Eating More
Cheese, and Which Cheeses Are Being Eaten More, 2016
Consumers Eating Less Cheese for Health Reasons and
Cost
Table 8-3 Selected Consumer Motivations for Eating Less Cheese, 2016
Millennials, Gen Xers Drive Higher Cheese Consumption .. 184
Figure 8-2 How Much Cheese Each Age Group Is Eating Compared to a
Few Years Ago, 2016 (percent)
Natural/Imported Cheese Increasing, Processed Cheese
Decreasing
Table 8-4 Households That Eat Natural or Imported Cheese Compared to
American Processed Cheese, 2005-2015 (percent)
USDA Data Illustrates Cheese Consumption Trends
Table 8-5 U.S. Per Capita Consumption of Natural Cheese by Variety,
2004-2014 (pounds, percent)
Table 8-6 U.S. Per Capita Consumption of Processed Cheese Products
by Variety, 2004-2014 (pounds, percent)
Demographics Vary by Natural and Processed Cheese
Products
Table 8-7 Summary Analysis of Demographic Characteristics of
Natural/Imported and Processed Cheese Product Consumers, 2015
Table 8-8 Demographic Characteristics of Natural/Imported and
Processed Cheese Product Consumers, 2015 (index)
Quantity of Natural/Imported Cheese Eaten Per Week
Increasing
Table 8-9 Amount Eaten in Last Seven Days by Households That Eat
Natural or Imported Cheese, 2005-2015 (percent)
Majority of Natural Cheese Consumers Eat Full Fat
Products
Table 8-10 Types of Natural or Imported Cheese Eaten Most Often by
Households, 2005-2015 (percent)
Cheddar and Mozzarella Still Rule but Specialty Varieties
Keep Gaining
Table 8-11 Varieties of Natural or Imported Cheese Eaten Most Often by
Households, 2005-2015 (percent)
Demographics Vary by Cheese Variety
Table 8-12 Summary Analysis of Demographic Characteristics of Natural
and Imported Cheese Consumers by Selected Types Eaten, 2015
Table 8-13 Demographic Characteristics of Natural and Imported Cheese
Consumers by Selected Types Eaten, 2015 (index)
Consumers Eat Store Brands, Kraft and Sargento Most Often
Table 8-14 Brands of Natural or Imported Cheese Eaten Most Often by
Households in the Last 7 Days, 2005-2015 (percent)
Demographics Vary by Cheese Brand
Table 8-15 Summary Analysis of Demographic Characteristics of Natural
and Imported Cheese Consumers by Selected Brands, 2015
Table 8-16 Demographic Characteristics of Natural and Imported Cheese
Consumers by Selected Brands, 2015 (index)
6% of Adults Eat Organic Cheese
Table 8-17 Adults That Eat Organic Foods by Selected Product Type,
2010-2015 (percent)
Demographic Characteristics of Organic Versus Natural
Cheese Consumers
Table 8-18 Summary Analysis of Demographic Characteristics of Organic
Versus Natural Cheese Consumers, 2015
Table 8-19 Demographic Characteristics of Organic Versus Natural
Cheese Consumers, 2015 (index)
Over Half of Adults Have Been Watching Diet for the
Last 15 Years
Table 8-20 Reasons and Foods Eaten to Watch Diet for People Watching
Diet, 2005-2015 (percent)
Some Consumers Want Healthier, Some Indulgent
Table 8-21 Consumer Attitudes about Food: Agree a Lot, 2005-2015
(percent)
Demographic Differences Between Healthy and
Unhealthy Eaters
Table 8-22 Demographic Characteristics of “Healthy” and “Unhealthy”
Consumers, 2015 (index)
Table 8-22 [Cont’d] Demographic Characteristics of “Healthy” and
“Unhealthy” Consumers, 2015 (index)
Cheese Eater Attitudes Analyzed with Simmons
Segmentation System
Simmons Food Lifestyle Segmentation System
Table 8-23 How Cheese Consumers Identify with Simmons Food
Lifestyle Segments, 2015 (index)
Simmons Health and Well-Being Segments
Table 8-24 How Cheese Consumers Identify with Simmons Health and
Well-Being Segments, 2015 (index)
Chapter 9 Global Overview
Overview
Global Growth Driven By Emerging Markets
Cheese Production
Table 9-1 Cheese Production for Selected Countries, 2011-2016
(1,000 Metric Tons)
Figure 9-1 Share of Global Cheese Production by Leading Countries,
2015
Cheese Consumption
Table 9-2 Cheese Consumption for Selected Countries, 2011-2016
(1,000 Metric Tons)
Per Capita Consumption
Figure 9-2 Per Capita Cheese Consumption for Selected Countries,
2014 (pounds)
Cheese Imports by Country
Table 9-3 Cheese Imports for Selected Countries, 2011-2016
(1,000 Metric Tons)
Cheese Exports by Country
Table 9-4 Cheese Exports for Selected Countries, 2011-2016
(1,000 Metric Tons)
U.S. Cheese Exports
Table 9-5 Regional Export Markets for U.S. Cheese of All Types,
2011-2015 ($ in thousands)
Table 9-6 Leading Countries for Export of U.S. Cheese of All Types,
2011-2015 (in thousands of dollars)
Global Competitive Landscape
Groupe Lactalis, France
Friesland Campina, Netherlands
Arla Foods, Denmark
Fonterra Co-operative Group Ltd., New Zealand
Savencia Fromage & Dairy (formerly Bongrain SA), France
Sodiaal International SA, France
DMK, Germany
Saputo, Inc., Canada
Trends
Organic/Bio
Illustration 9-1: Organic/Bio Cheeses
Low/Lactose-free Cheeses
Illustration 9-2: Arla’s Lactofree Cheese
Low/No Salt/Fat
Illustration 9-3: Wyke Farms’ Fabulous 5 Reduced-Fat Cheese
Higher Protein Cheese
Illustration 9-4: Kraft Higher Protein Cheese
Snacking
Illustration 9-5: Cheese Snacks
Kids
Illustration 9-6: Kids Cheese
No-Melt Cheeses
Illustration 9-7: No-Melt Cheeses
Unique Flavors
Illustration 9-8: Flavorful Cheeses
Customized Grated Cheeses
Illustration 9-9: Džiugas Grated Cheese Mixes
Private Label/Store Brands
Table 9-10 Selected Private-Label Food Brands with Natural Cheese,2016