Maturing well: Organic and free-range dairy products have become important drivers of revenue growth

The industry faced significant pressure from highly volatile input prices over the past five years. However, the persistent popularity of Cheddar cheese and ongoing product innovation have extended the industry’s shelf life. Revenue is expected to decline at a compound annual rate of 6.9% over the five years through 2018-19, although revenue did rise in 2017-18 and is expected to expand by 0.4% in the current year, to reach £2.5 billion. The provenance of food has played an important factor in consumer purchasing habits, with artisan cheese producers growing in popularity. This is highlighted by the number of enterprises operating in the industry rising at an estimated compound annual rate of 3.2% over the five years through 2018-19...read more.

Industry Statistics & Market Size
Revenue
£2.5bn
Annual Growth 14-19
-6.9%
Forecast Growth 19-24
Profit
Employment
6,775
Businesses
193

Industry Threats & Opportunities

  • Fluctuating milk prices and the supermarket price war have constrained industry revenue
  • A recent resurgence in the popularity of butter, in addition to rising prices, has supported growth
  • Barriers to trade could pose problems, as the industry derives a significant share of revenue from exports
  • Industry Report - Industry Locations Chapter

    The geographic spread of industry establishments largely reflects the distribution of dairy farms, although there is a limit to the strength of the relationship. Establishments are spread across many regions, showing that transport networks have evolved beyond the need for close geographical proximity. For example, Arla Foods is headquartered in Leeds and has dairies spread around the country in Leicestershire, Somerset, Lockerbie, Chelmsford and North Yorkshire. Other than the South West, the distribution of butter- and cheese-producing establishments in the United Kingdom is strongly correlated with the distribution of population, especially for the smaller producers...purchase to read more.

    Additional Insights for the Butter & Cheese Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Butter & Cheese Production Industry are

  • Ability to alter goods and services produced in favour of market conditions
  • Access to high quality inputs
  • Undertaking technical research and development
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and Domestic price of milk in the Butter & Cheese Production industry impact industry performance..

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    What's in this report

    What is the Butter & Cheese Production Industry?

    This industry includes establishments that manufacture butter, cheese and curd. It excludes the manufacture of non-dairy cheese or butter substitutes. Spreads made from buttermilk are included whereas margarine, which is made from vegetable oil, is excluded. Fromage frais, although technically a type of cheese, is excluded from this industry (see IBISWorld report C10.519).

    Industry Products
  • Cheddar
  • Unripened cheese
  • Processed cheese
  • Butter and dairy spreads
  • Other cheeses
  • Buttermilk and other products
  • Industry Activities
  • Butter production
  • Cheese production
  • Curd production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets
  • Domestic price of milk
  • Health consciousness
  • Real household disposable income
  • Population

  • Current Performance
  • Farm-gate fluctuations
  • Buttered up
  • Discerning tastes
  • Chart: Revenue Growth

  • Industry Outlook
  • Trade uncertainty
  • Irish imports
  • Milk prices
  • Consumer demands
  • Table: Butter & Cheese Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Butter & Cheese Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Prepared Meal Manufacturing
  • Dairy Product, Egg & Edible Oil Wholesaling
  • Supermarkets
  • Full-Service Restaurants

  • Key Selling Industries
  • Dairy Cattle Raising

  • Products & Services
  • Cheddar
  • Butter and dairy spreads
  • Unripened cheese
  • Other cheeses
  • Processed cheese
  • Buttermilk and other products
  • Chart: Butter & Cheese Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retail trade
  • Food-service industry
  • Food processors
  • Wholesalers
  • Speciality retailers
  • Chart: Major Market Segmentation for the Butter & Cheese Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Butter & Cheese Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Butter & Cheese Production Industry

  • Industry Globalization
    Arla Foods Ltd, Dairy Crest Group plc, The First Milk Cheese Company Limited,
  • Table: Arla Foods Ltd - financial performance
  • Table: Dairy Crest Group plc - financial performance
  • Table: The First Milk Cheese Company Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Butter & Cheese Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Butter & Cheese Production Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fromage Frais
  • A dairy product originating from Belgium and the north of France. Its name comes from the French for fresh cheese.
  • Protected Designation Of Origin (Pdo)
  • An EU regulation that is designed to ensure that produce associated with a particular place has been made in a certain way.
  • Saturated Fat
  • A fatty acid found in butter and cheese. It has been associated with heart disease and cardiovascular problems when consumed in excess.
  • What Our Customers Say

    Why buy this report?

    The Butter & Cheese Production market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
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    • Inform your decisions for marketing, strategy and planning
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    This report on Butter & Cheese Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Butter & Cheese Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Butter & Cheese Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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