Dive Brief:
- The five global leaders in the cheese industry, Kraft, Philadelphia, President, Sargento, and Galbani, together own less than 10% of the overall cheese market, according to new research from Canadean.
- This figure demonstrates how fragmented the cheese industry is as more competition enters the market.
- Canadean also predicted that the global cheese industry will grow by almost 10% over the next few years, jumping to $237 billion in 2019 from $216.3 billion in 2014. Leading the way is Brazil with growth expected to triple.
Dive Insight:
Part of the growth for cheese comes from the rise of Western foods in emerging nations, such as China, India, and especially Brazil, the fastest growing cheese market. As populations with increasing disposable income grow in these countries, more consumers spend money on processed foods, including cheese. The appeal of Western foods, such as pizza, pasta, and sandwiches, have made cheese a crucial component. According to Canadean, "Simultaneously, the rapid growth of modern retail formats and fast food chains in emerging markets are driving both retail and on-trade sales of cheese."
"Hypermarkets and supermarkets are the leading retailer channel for cheese in emerging markets, as they offer a wide range of cheese including multi-brand, private label and specialty products," said Dhara Badiani, analyst at Canadean, in a press release.