Cheese Trends in Australia and New Zealand

Highlights:

Recent cheese trends in Australia and New Zealand include:

• Clean label cheeses
• Adding probiotics to cheeses
• Dairy-free and lactose-free options 

Cheese Market Growing with Consumer Demand

Retail cheese sales grew around the globe last year as more consumers ate from home during COVID lockdowns, with new product launches becoming a major category trend. In Australia, new cheese products saw exponential growth, with 263 new cheese launches in 2020 compared to 132 the year before.¹ 

The retail cheese market in Australia and New Zealand reached $2.4 billion last year, with a 1% CAGR forecast from 2020 to 2025.² Cheese growth in the region is being driven by demand for unprocessed cheese. Unprocessed cheese is estimated to grow by 2% during the forecast period, while processed cheese is expected to decline by 4%.³ Both hard and soft cheeses (mostly unflavored versions) are growing in new product launches in the region.⁴

A Look at Trends in Cheese

As cheese brands seek to appeal to Australian and New Zealand consumers, they’re turning to a variety of strategies ranging from new flavors to e-commerce of local artisanal cheese. But the ones that seem to be resonating the most are tapping into consumers’ concerns around health as well as sustainability.

Here’s a look at cheese trends in the Australian-New Zealand market:

1. Clean Label

Clean label claims are on the rise in cheese. Claims include no additives/preservatives, free from added/artificial flavorings, and free from added/artificial coloring. While these claims have been steadily increasing in new product launches of cheese over the past few years, there was a significant jump between 2019 and 2020.⁵

In 2020, those clean label claims accounted for three of the top four top claims in new cheese product launches.⁶ The growth in unprocessed cheese in the region also reflects consumers’ growing preference for cheese with a natural ingredient label.

2. Probiotic Cheese

Another health-focused trend in cheese is probiotic cheese, with new product launches in Australia and New Zealand slowly growing since 2017. The COVID pandemic has undoubtedly boosted consumer interest in probiotics to support immune health. 

Product examples in the market include Brancourts Probiotic Cottage Cheese and Paris Creek Farms Bio-Dynamic Low Fat Quark with live probiotic cultures. However, most of the recent probiotic cheese launches in the region have been vegan cheeses like Sprout & Kernel Pepper Corn Cultured Cashew Cheese and Kehoe’s Kitchen Basil Cashew Cheese.

3. Dairy-Free/Lactose-Free 

In New Zealand, consumer interest in health and wellness has been driving growth in lactose-free and dairy-free cheeses, both in value and volume. Consumers are showing they’re willing to spend more on these types of cheeses. With demand for plant-based alternatives increasing exponentially in New Zealand, plant-based cheese is an important cheese trend to watch.

In Australia, where processed cheese sales are declining the most, there has been some movement toward expanding the category through the use of plant-based ingredients. Processed dairy-free cheeses can appeal to health-conscious, as well as environmentally-conscious consumers. Dairy-free and lactose-free hold significant innovation opportunities for the region’s cheese market.

Innovating for Success

Keeping up with trends is essential to understanding consumers’ most important concerns and allowing brands to address them with the right product innovations. As a global leader in cheese, Glanbia Nutritionals offers brands a variety of cheeses that appeal to consumers’ diverse and evolving tastes. 

Explore our cheese solutions for your next product—including our classic, artisan, blended, and health and wellness cheeses.

References

1. Mintel GNPD, May 2021. 
2-3. Euromonitor Passport, May 2021.
4-6. Mintel GNPD, May 2021.