How cheese brands are tapping into snacking
According to market analysts Mintel, more than 80% of shoppers in the UK, Germany and the US snack between meals, making snacking a near-universal habit.
And even though food inflation continues to affect the snacking landscape, salty snacks have experienced growth, in large part thanks to their relative affordability.
Cheese is particularly well-placed to fit into that niche and is being seen as a convenient and versatile option by consumers.
“In the US, the increase in snacking occasions is benefiting the cheese market, with cheese being used more frequently as a snack due to its satiety and convenience,” a spokesperson for Mintel told us.
“Similarly, in Germany, the ‘snackification’ trend has led to increased demand for cheese snacks, with a significant rise in cheese being consumed as a snack from 42% in 2019 to 51% in 2021.”
So what makes cheese so desirable in the snacking world?
Portability and convenience
Whether it’s taking mini cheeses to work or school, the portability of cheese makes it a favored choice for consumers with busy lifestyles. “In the US, hybrid work models have highlighted cheese's versatility as it can be consumed at home, on the commute, or in the office,” Mintel’s spokesperson said.
A similar trend is taking shape in the UK, where Saputo Dairy UK’s Cathedral City and The Bel Group’s Babybel, among others, are present in the segment, with grocery retailers offering private-label cheese sticks as parts of Meal Deals, too.
Cathedral City brand manager Lissie Bernard told us the brand now has 51.5% market share in the adult snacking market in the UK, with Cathedral City’s portfolio ‘in clear growth’, seeing 35% volume uplift YoY in the adult snacking category and 22% rise in kids snacking (source: Circana 12w/e 11 May 2024). The Cathedral City Mature Minis and Cathedral City Lunch Packs are seeing sales of £16m and £3.1m, a YoY increase of 15.7% and 65.5% respectively, based on IRI All Outlets & KWP Discounters w/e 6 July 2024, she added.
Meanwhile, The Bel Group reported in its H1 2024 results that sustained sales performance from Babybel contributed to organic growth across its mature categories, with sales of the wax-wrapped mini cheeses rebounding in Canada and buoying business in Europe.
Innovation & variety
Consumers are showing interest in a variety of cheese formats and flavours, Mintel told us.
“In the UK, there is a demand for smaller cheese formats that offer variety, with consumers keen to try different types of cheeses,” a spokesperson for the market intelligence agency said.
“In Germany, younger consumers are particularly interested in innovative cheese formats and flavours, driving the ‘snackification’ trend forward.”
In recent years, dehydrated cheese rounds have been positioned as a clean-label, low-carb and high-protein snack. Often a one-ingredient product but also available in different flavors, these salty snacks are made by removing the moisture from hard cheese such as cheddar, parmesan or gouda, then baking it into crispy puffs that are high in protein and calcium but lower in fat.
Consumers have also taken to making their own cheese puffs at home in a trend dubbed 'keto popcorn cheese' where cheese is naturally dried at ambient temperature for several days, then baked in an air-fryer.
In retail, US brand Whisps is among the players to launch a range of cheese puffs. Whisps Popped 'is made with 100% real cheese, grated and baked into poppable snacks, then seasoned with even more cheese,' says the company, and packing 10g of protein per serving.
Kids snacking
Kids snacking offers another avenue for cheesemakers looking to tap into the snacking segment.
According to Mintel data quoted to us by Saputo Dairy UK, health remains a top priority for parents, with 65% stating that cheese to be a good snack option for kids.
With that in mind, Saputo expanded its kids’ cheese this year with the launch of Cathedral City Bites. A spokesperson for the company told us the kids market had driven snacking’s 8.7% growth according to Grocery Outlets and Kantar Discounters data; and the total kids cheese snacks segment achieved a year-on-year growth of 5.4%, reaching a valuation of £344.4m according to IRI SIG Outlet + Kantar Discounters & Bargain Stores.
Lissie Bernard, brand manager for Cathedral City, told DairyReporter: “The growth of the children snacks market is affected by several factors, including changing lifestyles, and the rising demand for on-the-go snack options.
“Additionally, the influence of digital media and advertising plays a significant role in shaping children's snack preferences.
“However, market growth is restrained by challenges such as industry body restrictions on marketing to children, concerns over childhood obesity and dental health, and the need for product differentiation amidst fierce competition.”
Balancing health with indulgence
“There is a focus on balancing indulgence with health,” Mintel’s spokesperson told us.
“In Germany, brands are encouraged to associate cheese with better-for-you ingredients like vegetables and nuts, rather than reducing fat and salt levels.
“In the US, cheese is positioned as a permissible indulgence and a healthy snack option.”
Focus on low-fat, high-protein cheese is also on the rise. British better-for-you cheddar brand EatLean recently struck a deal with retailer Morrisons to include its protein-rich cheese sticks as a Meal Deal option.
In the US, Saputo’s Frigo Cheese Heads added a Whole Milk Cheese variety of individually-wrapped mozzarella string cheeses, aimed at consumers seeking satiety but also suitable for inclusion in kids’ lunchboxes.
Affordability
Economic considerations remain key for global consumers in 2024 – but there’s a silver lining for the salty snacking sector.
“While inflation poses a threat to cheese as an affordable snack, consumers are still inclined towards savoury snacks like cheese over sweet treats, especially in countries like France, Spain, and Poland.
“In the US, despite higher prices, cheese remains a household staple due to its versatility and value.”
