Over the forecast period, cheese is set to register positive value growth at constant 2018 prices in line with review period growth rates. This set to be based on the improving economic conditions and rising disposable incomes.
As modern grocery retailers continue to expand their outlet networks in major urban areas throughout the forecast period, the distribution of cheese is set to expand as well. Supermarkets already dominate sales of cheese and this is largely due to the requirement for cheese to be kept refrigerated; relatively few traditional retail outlets have refrigerated storage units, while supermarkets invariably do.
Over the forecast period, cheese players are expected to tap into an expanding consumer base by offering cheaper brands and a wider selection of products. The challenge is likely to be how to position cheese as a mainstream product to a consumer base that is relatively unfamiliar with it.
France-based multinational company Groupe Bel maintained its leading position in cheese in 2017. Groupe Bel’s success is due to the widespread popularity of its key brands Kiri and La Vache Qui Rit, the company’s long-standing presence in Cameroon and its strong advertising campaigns, which have resulted in high levels of consumer awareness and confidence.
Cheese remains a category under the control of international brands and domestic players present little or no competition, a situation which is very likely to remain in effect throughout the forecast period. The high investment costs involved in cheese production as well as the high levels of technical expertise required to operate this type of business make it difficult for new players to enter cheese.
Premium cheese brands tend to outperform economy and standard brands due to their higher prices, although standard brands generate the highest proportion of volume terms in the category. Nevertheless, cheese is generally viewed as an expensive and non-essential packaged food product.
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This industry report originates from Passport, our Packaged Food market research database.