Although its growth at retail has slowed down in recent years, the natural cheese category is still gaining yardage. Dollar sales in the total category rose 1% to $12.9 billion during the 52 weeks ending Aug. 12, 2018, data from Chicago-based market research firm IRI show. Unit sales increased 1.5%.
Natural cheese sales have been steady for subcategories such as slices and shreds, but others (crumbles, chunks) are struggling. Meanwhile, cheese spreads/balls saw a sales boost in the processed cheese category.
Natural cheese is the consumer choice, with shreds, cubes and slices the preferred forms. Meanwhile, processed cheese spreads/balls are one beacon of light for that category.
Sales indicate that consumers continue to prefer natural over processed cheese, with slices, shreds and cubes sales getting a boost. In the processed cheese category, cheese spreads/balls was the only segment with positive sales numbers.
As we wrote about in our State of the Industry report last month, consumers love their cheese and are eating more of it, but prefer all-natural varieties.
Consumers’ preference for natural over processed shows in cheese sales. While natural cheese sales remained positive, processed cheese continues to see declines. Consumers are opting for natural slices, sticks and shredded cheese.
As the processed cheese category continues to struggle and with natural cheese still winning with consumers, we ask: Are fancy cheeses the next big thing?
Refrigerated grated, crumbled and shredded cheeses are still winners for the natural cheese category, while imitation cheese loaf and shreds show promise in the processed cheese category.
Convenience is the key. Shred it, grate it, crumble it. Consumers like their cheese ready-to-go, whether it’s natural or processed, though natural is still winning the game.