The Future of Cheese & Dairy 2025
steve • January 29, 2025
Navigating Challenges and Embracing Opportunities
The dairy and cheese industry in the UK has always been integral to both our everyday diets and our national identity. From a comforting slice of cheddar to the indulgence of a rich brie, dairy plays a significant role in what we eat, how we celebrate, and even how we socialise. But as we approach 2025, the industry is on the precipice of change. The landscape is evolving, with new consumer expectations, environmental pressures, and market trends all demanding a shift. This article explores the challenges the UK dairy and cheese sector faces in 2025 and the steps brands must take to engage consumers and lead in this shifting environment.
Sustainability and the Growing Pressure to Adapt
If 2025 is to be a year of change for the dairy and cheese industry, sustainability will be at the heart of it. From dairy farming to production, the environmental impact of the sector is under intense scrutiny. With consumers increasingly looking for brands that prioritise sustainability, the dairy industry is facing a simple question: how can it continue to meet demand without compromising the environment? We know that younger generations, particularly Millennials, are becoming more vocal about sustainability and the brands they choose to support. In fact, recent statistics reveal that over 70% of consumers under the age of 35 are more likely to engage with or buy from a brand that demonstrates a commitment to sustainability. For the dairy industry, this represents both a challenge and an opportunity. Consumers are no longer just looking for a good product—they’re looking for a brand that aligns with their values. The dairy sector will need to find innovative ways to reduce its carbon footprint and embrace new, more sustainable farming practices. This might include everything from adopting renewable energy sources on farms to rethinking packaging and reducing food waste. Many cheese brands are already leading the way with more sustainable production methods, yet the bigger question remains: how do we bring these efforts to the forefront, so that consumers understand and appreciate them? Navigating the Price-Sensitive Market
While sustainability is vital, it’s not the only challenge facing dairy brands in 2025. The rising cost of living is creating a more price-sensitive consumer base. With inflation affecting almost every sector, dairy prices are climbing, and consumers are more careful about what they spend their money on. And in the face of competition from plant-based alternatives, like oat milk and vegan cheeses, how can traditional dairy brands justify their premium prices? The answer lies not only in the product but in the story behind it. As much as consumers are focused on sustainability, they are equally concerned about quality, authenticity, and local provenance.The challenge for dairy brands is to ensure their products stand out by emphasising the quality, tradition, and ethical values behind their production.
Dairy brands that can demonstrate value beyond the price tag—by showcasing their sustainable practices, supporting local farmers, or investing in animal welfare—will have an edge in a competitive market. While plant-based alternatives may be appealing to some, there is still a large, loyal audience who appreciate the richness and quality of dairy. These consumers are looking for more than just a cheap deal—they want to feel like they are making a meaningful purchase, one that supports their values.
The Health Debate: Rebuilding the Narrative
Health is an issue that continues to evolve in the public conversation. As more people adopt plant-based and dairy-free diets, the health debate around dairy products intensifies. With concerns about lactose intolerance, the rise of veganism, and the perception that dairy may be less healthy than plant-based alternatives, the industry must work harder than ever to educate consumers about the health benefits of dairy. Dairy is rich in essential nutrients—calcium, protein, vitamins A and D—but this message often gets lost in the noise of plant-based alternatives.For brands, the task now is clear: they must help people understand the genuine health benefits that dairy products offer, and why they should be included in a balanced diet.The key lies in better education. Instead of shying away from the conversation, brands need to confront it head-on. This might mean partnering with nutritionists, dietitians, and health experts to advocate for the benefits of dairy, and to offer solutions for those with specific dietary needs, such as lactose-free options. It’s about being transparent with consumers and showing how dairy fits into a modern, healthy lifestyle.
The Ethical Consumer and Transparency
Ethical consumerism is here to stay. Consumers want to know where their food comes from and how it is produced. In an era of increased transparency, the dairy industry must be open about its sourcing practices and production methods. Brands that can offer traceability—from farm to table—will likely earn greater trust and loyalty from consumers, especially those who are concerned about animal welfare and the environmental impact of production. In 2025, the expectation is clear: brands must be honest and upfront about the provenance of their products. Whether it’s ensuring that animals are treated well, using ethical farming practices, or reducing environmental harm, dairy brands need to go beyond the product itself. They need to offer an insight into the process.This is particularly relevant as consumers increasingly demand more transparency around packaging and the overall environmental impact of products. As part of the ethical narrative, brands should ensure their packaging is sustainable—whether that’s recyclable or made from biodegradable materials. This small change can have a huge impact on consumer loyalty, especially among younger shoppers who are highly vocal about the brands they choose to support.
The Path Forward: Educating and Engaging the Consumer
The future of the dairy and cheese industry in the UK lies in its ability to adapt to changing consumer attitudes, environmental demands, and market pressures. In 2025, the most successful dairy brands will be those that are not just selling a product but are part of a broader narrative—one that includes sustainability, health, and ethics. The key challenge will be educating consumers about these values while delivering high-quality products that justify their price.By focusing on consumer education and transparency, brands can build trust and loyalty, creating a meaningful connection with their audience. The future of the dairy industry lies in its ability to adapt to these shifting expectations and remain true to the values that made it an essential part of our daily lives. Ultimately, it’s not about getting ahead of trends; it’s about leading with purpose.
Dairy brands that embrace sustainability, champion health, and support ethical practices will continue to thrive.Those that don’t may struggle to stay relevant in a market that is increasingly driven by conscious consumerism.
The UK’s cheese industry faces a complex landscape. Rising living costs have driven consumers to be more budget-conscious. The Office for National Statistics (ONS) reports food and beverage inflation reached 12% in 2024, reshaping purchasing behaviours. Kantar UK highlights that private label cheese sales reached £4.2 billion, with overall private label grocery sales growing by 10% in 2024. For cheese brands, this dynamic market presents both significant challenges and promising opportunities. Steve Moncrieff, Strategy Director at the International Cheese and Dairy EXPO, offers insights "Private label sales reflect shifting consumer priorities—value, trust, and health are now central. While this poses challenges for established brands, it also opens opportunities for those ready to differentiate. Success lies in more than competing on price; it’s about creating emotional and ethical resonance through stories of provenance, sustainability, and nutrition." Private labels are particularly appealing to younger consumers. Mintel reports that 72% of Gen Z and Millennial shoppers see private labels as offering similar quality to national brands. However, brand trust remains critical for older consumers, with 82% of Baby Boomers preferring established names. Regional differences also shape preferences: IGD data shows premium and organic cheeses are favoured in London and the South East, while value-focused choices dominate in the North and Wales. With IGD forecasting private label sales to outpace branded sales by 2025, brands must strategically address these consumer segments. Cheese brands can stay competitive by aligning products with regional and generational preferences. Offering both premium and value options, while focusing on provenance and ethical sourcing, will differentiate brands in a crowded market. Capitalising on Health-Conscious Consumer Trends Health-conscious consumption is reshaping the dairy sector. NHS Digital notes that GLP-1 prescriptions for weight management have tripled in five years. With 65% of UK adults overweight or obese (Public Health England), consumers are increasingly drawn to products supporting healthier lifestyles. The British Nutrition Foundation reports that 82% of UK consumers prioritise healthier food choices, and 47% focus on high-protein diets. Flexitarianism is also on the rise, with 29% of adults embracing this approach. Key findings from a YouGov UK survey include: 91% reduced portion sizes 62% cut back on sugary drinks and alcohol 40% increased high-protein food consumption Cheese brands can leverage these trends by introducing high-protein, low-fat varieties and promoting portion-controlled offerings. Educational campaigns emphasising the nutritional role of cheese in balanced diets can strengthen brand-consumer connections. Differentiation Through Functional Benefits Functional benefits are emerging as key drivers of consumer preference. Deloitte UK reports that 58% of consumers seek products with added health benefits. Mintel adds that 45% link dairy products to positive health outcomes. Several brands have successfully embraced this trend: Cathedral City launched a high-protein snack range in 2024, achieving a 12% sales boost within six months (NielsenIQ). The Laughing Cow introduced vitamin D-fortified cheese portions, quickly becoming a top seller. Yeo Valley expanded its organic cheese line with probiotic-enriched options, gaining 8% market share in 2024. To capitalise on this momentum, cheese brands should: Develop high-protein, portion-controlled products. Incorporate functional ingredients such as probiotics and vitamins. Launch digital educational campaigns showcasing cheese’s health benefits. Collaborate with nutritionists and influencers for credible endorsements. Innovating for Plant-Based and Lactose-Free Demand Demand for plant-based and lactose-free cheese options is rising. IGD reports a 15% annual growth in plant-based dairy sales, while Mintel states that 28% of UK adults purchase plant-based dairy alternatives. This trend reflects health awareness, environmental considerations, and dietary restrictions. Cheese brands can respond by: Introducing premium plant-based cheeses using locally sourced ingredients. Offering lactose-free alternatives for the 8% of UK consumers who are lactose intolerant (NHS). Developing convenience-focused products, such as on-the-go cheese snacks. Enhancing flavour and texture** in niche offerings to meet UK taste preferences. Embracing Digital Engagement and Omnichannel Strategies Digital engagement is crucial in today’s marketplace. Ofcom’s 2024 data shows that 96% of UK adults use the internet daily, with 70% researching grocery purchases online. Statista reports an 8% growth in UK food e-commerce sales in 2024. Social media plays a central role, with 78% of consumers engaging with food-related content, particularly on Instagram and TikTok (Hootsuite). Cheese brands can strengthen consumer engagement by: Creating engaging, health-focused conten t on social media. Partnering with health and wellness influencers for credible campaigns. Enhancing e-commerce platforms with personalised recommendations and subscription services. Hosting live-streaming events and virtual tastings to deepen brand connections. Strengthening Brand Equity Through Sustainability Sustainability remains a priority for UK consumers. Deloitte UK reports that 56% of Gen Z and Millennials consider sustainability essential in purchasing decisions. NielsenIQ data shows that 48% of consumers are willing to pay more for eco-friendly dairy products. The UK Dairy Roadmap sets ambitious targets: a 30% emission reduction by 2030 and net zero by 2050. Cheese brands can reinforce sustainability credentials by: Sourcing milk sustainably and showcasing these efforts on packaging. Reducing carbon emissions through innovative manufacturing. Adopting recyclable and eco-friendly packaging. Partnering with local farms to lower transportation emissions and support the £2.5 billion local food market. Balancing Affordability and Perceived Value While price remains a top priority, perceived value drives premium purchases. KPMG UK notes that 73% of consumers consider price first, but 54% are willing to pay more for dairy products offering health benefits. NielsenIQ projects a 5% annual growth in demand for affordable luxury products through 2027. Cheese brands should: Offer value packs catering to families. Provide tiered product lines to appeal to different income brackets. Implement dynamic pricing strategies , including time-limited promotions. Bundle complementary products to enhance perceived value. The Path Forward for UK Cheese Brands To succeed in this evolving market, cheese brands must embrace actionable strategies: Focus on functional innovation by developing health-focused products. Adopt tiered pricing strategies to balance value and premium appeal. Enhance digital engagement through omnichannel marketing and influencer collaborations. Commit to sustainability with eco-friendly sourcing and packaging. By aligning with these consumer-driven trends, UK cheese brands can secure a competitive edge and build lasting connections with their audience.
The UK cheese market, currently valued in the billions of pounds, represents a vital arena for both established brands and emerging producers seeking to capture the evolving tastes of consumers. Industry reports indicate that specialty varieties now command a notable share of category growth, suggesting a strategic window for those prepared to offer products that balance tradition and innovation. This climate of change underscores an opportunity for FETA PDO - a protected Greek cheese steeped in heritage yet adaptable to modern demands - to serve as a compelling addition to brand portfolios in search of meaningful differentiation. FETA PDO stands apart through its Protected Designation of Origin status, which guarantees production within select regions of mainland Greece and Lesvos. This authentication is crucial when brand transparency and provenance can shape purchasing decisions, particularly among buyers and category managers who prioritise clear narratives. The controlled method of production - from the use of specific proportions of sheep’s and goat’s milk to the aging of the cheese in wooden barrels filled with brine - enhances its distinct flavour profile that resonates well with UK consumers who have shown an increasing openness to Mediterranean-inspired diets. Retail buyers looking to develop or refresh their premium lines can leverage FETA PDO’s story, emphasising meticulous craftsmanship, time-honored recipes, and stringent controls that resonate with consumers prioritising authenticity. Within this context, FETA PDO becomes more than a single SKU; it evolves into a narrative focal point, linking brand identity to genuine heritage. Buyers evaluating the broader cheese landscape are already mindful of ongoing pressures on the supply chain, from fluctuating milk prices to evolving consumer behaviours shaped by inflationary concerns. FETA PDO offers an assurance of consistent quality, supported by local Greek producers who operate in circumstances that foster the specific milk profiles needed for production. In a challenging environment, a well-articulated story of origin and artisanal care can capture consumer loyalty, particularly for those willing to pay a slight premium for perceived quality. There is, however, sometimes a tension between tradition and market-driven innovation that warrants attention. The cheese’s PDO framework demands rigorous adherence to production methods, which can occasionally limit immediate flexibility. Yet, this very constraint can serve as a point of difference, reminding retail buyers and foodservice operators that not all cheeses are created equal. By highlighting FETA PDO’s unique production criteria, brands emphasise the authenticity that modern consumers increasingly value, thereby justifying its placement at a higher price tier or in more specialised sections of a chiller. Such strategies should be rooted in clear-sighted data analysis. Ongoing category research reveals that while staples such as Cheddar still dominate volume sales, niche and specialty varieties often inspire stronger growth percentages. FETA PDO, when positioned effectively, can capitalise on this trend. Decision-makers using their own data - loyalty metrics, focus-group findings, or insights from store-level observational studies – can align with broader market intelligence. In some regions of the UK, consumers gravitate to unique flavour experiences. In others, they might respond best to messaging around healthfulness or ethical sourcing. A nuanced, region-by-region or even store-by-store approach can amplify results. Those adding FETA PDO into broader category portfolios will benefit from reinforcing the cheese’s story through carefully curated displays, thoughtful packaging, and engaging promotional campaigns. Buyers and brand teams that communicate the cheese’s PDO’s origins, generational know-how, and controlled production standards invite shoppers into a narrative of tradition and quality. When coupled with versatile recipe ideas and demonstrations - either online or in-store - this approach can elevate FETA PDO beyond a mere commodity cheese. Instead, it becomes an essential ingredient in a consumer’s culinary journey, stimulating repeat purchases and stronger loyalty. In moving forward, the collective evidence suggests a market environment in which FETA PDO is well-poised to contribute both to immediate sales objectives and to a broader brand narrative. By treating it as part of a holistic strategy - one that recognises the cheese’s heritage and values its potential to spark consumer interest. FETA PDO ultimately represents an opportunity: it leverages genuine cultural heritage, meets consumer appetite for unique flavors, and offers room for imaginative brand storytelling. When aligned with data-driven insights into evolving UK cheese consumption, it can serve as a resilient, forward-looking addition to a retailer’s category portfolio.
Unlocking the potential of the UK Cheese market
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The UK’s cheese industry faces a complex landscape. Rising living costs have driven consumers to be more budget-conscious. The Office for National Statistics (ONS) reports food and beverage inflation reached 12% in 2024, reshaping purchasing behaviours. Kantar UK highlights that private label cheese sales reached £4.2 billion, with overall private label grocery sales growing by 10% in 2024. For cheese brands, this dynamic market presents both significant challenges and promising opportunities. Steve Moncrieff, Strategy Director at the International Cheese and Dairy EXPO, offers insights "Private label sales reflect shifting consumer priorities—value, trust, and health are now central. While this poses challenges for established brands, it also opens opportunities for those ready to differentiate. Success lies in more than competing on price; it’s about creating emotional and ethical resonance through stories of provenance, sustainability, and nutrition." Private labels are particularly appealing to younger consumers. Mintel reports that 72% of Gen Z and Millennial shoppers see private labels as offering similar quality to national brands. However, brand trust remains critical for older consumers, with 82% of Baby Boomers preferring established names. Regional differences also shape preferences: IGD data shows premium and organic cheeses are favoured in London and the South East, while value-focused choices dominate in the North and Wales. With IGD forecasting private label sales to outpace branded sales by 2025, brands must strategically address these consumer segments. Cheese brands can stay competitive by aligning products with regional and generational preferences. Offering both premium and value options, while focusing on provenance and ethical sourcing, will differentiate brands in a crowded market. Capitalising on Health-Conscious Consumer Trends Health-conscious consumption is reshaping the dairy sector. NHS Digital notes that GLP-1 prescriptions for weight management have tripled in five years. With 65% of UK adults overweight or obese (Public Health England), consumers are increasingly drawn to products supporting healthier lifestyles. The British Nutrition Foundation reports that 82% of UK consumers prioritise healthier food choices, and 47% focus on high-protein diets. Flexitarianism is also on the rise, with 29% of adults embracing this approach. Key findings from a YouGov UK survey include: 91% reduced portion sizes 62% cut back on sugary drinks and alcohol 40% increased high-protein food consumption Cheese brands can leverage these trends by introducing high-protein, low-fat varieties and promoting portion-controlled offerings. Educational campaigns emphasising the nutritional role of cheese in balanced diets can strengthen brand-consumer connections. Differentiation Through Functional Benefits Functional benefits are emerging as key drivers of consumer preference. Deloitte UK reports that 58% of consumers seek products with added health benefits. Mintel adds that 45% link dairy products to positive health outcomes. Several brands have successfully embraced this trend: Cathedral City launched a high-protein snack range in 2024, achieving a 12% sales boost within six months (NielsenIQ). The Laughing Cow introduced vitamin D-fortified cheese portions, quickly becoming a top seller. Yeo Valley expanded its organic cheese line with probiotic-enriched options, gaining 8% market share in 2024. To capitalise on this momentum, cheese brands should: Develop high-protein, portion-controlled products. Incorporate functional ingredients such as probiotics and vitamins. Launch digital educational campaigns showcasing cheese’s health benefits. Collaborate with nutritionists and influencers for credible endorsements. Innovating for Plant-Based and Lactose-Free Demand Demand for plant-based and lactose-free cheese options is rising. IGD reports a 15% annual growth in plant-based dairy sales, while Mintel states that 28% of UK adults purchase plant-based dairy alternatives. This trend reflects health awareness, environmental considerations, and dietary restrictions. Cheese brands can respond by: Introducing premium plant-based cheeses using locally sourced ingredients. Offering lactose-free alternatives for the 8% of UK consumers who are lactose intolerant (NHS). Developing convenience-focused products, such as on-the-go cheese snacks. Enhancing flavour and texture** in niche offerings to meet UK taste preferences. Embracing Digital Engagement and Omnichannel Strategies Digital engagement is crucial in today’s marketplace. Ofcom’s 2024 data shows that 96% of UK adults use the internet daily, with 70% researching grocery purchases online. Statista reports an 8% growth in UK food e-commerce sales in 2024. Social media plays a central role, with 78% of consumers engaging with food-related content, particularly on Instagram and TikTok (Hootsuite). Cheese brands can strengthen consumer engagement by: Creating engaging, health-focused conten t on social media. Partnering with health and wellness influencers for credible campaigns. Enhancing e-commerce platforms with personalised recommendations and subscription services. Hosting live-streaming events and virtual tastings to deepen brand connections. Strengthening Brand Equity Through Sustainability Sustainability remains a priority for UK consumers. Deloitte UK reports that 56% of Gen Z and Millennials consider sustainability essential in purchasing decisions. NielsenIQ data shows that 48% of consumers are willing to pay more for eco-friendly dairy products. The UK Dairy Roadmap sets ambitious targets: a 30% emission reduction by 2030 and net zero by 2050. Cheese brands can reinforce sustainability credentials by: Sourcing milk sustainably and showcasing these efforts on packaging. Reducing carbon emissions through innovative manufacturing. Adopting recyclable and eco-friendly packaging. Partnering with local farms to lower transportation emissions and support the £2.5 billion local food market. Balancing Affordability and Perceived Value While price remains a top priority, perceived value drives premium purchases. KPMG UK notes that 73% of consumers consider price first, but 54% are willing to pay more for dairy products offering health benefits. NielsenIQ projects a 5% annual growth in demand for affordable luxury products through 2027. Cheese brands should: Offer value packs catering to families. Provide tiered product lines to appeal to different income brackets. Implement dynamic pricing strategies , including time-limited promotions. Bundle complementary products to enhance perceived value. The Path Forward for UK Cheese Brands To succeed in this evolving market, cheese brands must embrace actionable strategies: Focus on functional innovation by developing health-focused products. Adopt tiered pricing strategies to balance value and premium appeal. Enhance digital engagement through omnichannel marketing and influencer collaborations. Commit to sustainability with eco-friendly sourcing and packaging. By aligning with these consumer-driven trends, UK cheese brands can secure a competitive edge and build lasting connections with their audience.
The UK cheese market, currently valued in the billions of pounds, represents a vital arena for both established brands and emerging producers seeking to capture the evolving tastes of consumers. Industry reports indicate that specialty varieties now command a notable share of category growth, suggesting a strategic window for those prepared to offer products that balance tradition and innovation. This climate of change underscores an opportunity for FETA PDO - a protected Greek cheese steeped in heritage yet adaptable to modern demands - to serve as a compelling addition to brand portfolios in search of meaningful differentiation. FETA PDO stands apart through its Protected Designation of Origin status, which guarantees production within select regions of mainland Greece and Lesvos. This authentication is crucial when brand transparency and provenance can shape purchasing decisions, particularly among buyers and category managers who prioritise clear narratives. The controlled method of production - from the use of specific proportions of sheep’s and goat’s milk to the aging of the cheese in wooden barrels filled with brine - enhances its distinct flavour profile that resonates well with UK consumers who have shown an increasing openness to Mediterranean-inspired diets. Retail buyers looking to develop or refresh their premium lines can leverage FETA PDO’s story, emphasising meticulous craftsmanship, time-honored recipes, and stringent controls that resonate with consumers prioritising authenticity. Within this context, FETA PDO becomes more than a single SKU; it evolves into a narrative focal point, linking brand identity to genuine heritage. Buyers evaluating the broader cheese landscape are already mindful of ongoing pressures on the supply chain, from fluctuating milk prices to evolving consumer behaviours shaped by inflationary concerns. FETA PDO offers an assurance of consistent quality, supported by local Greek producers who operate in circumstances that foster the specific milk profiles needed for production. In a challenging environment, a well-articulated story of origin and artisanal care can capture consumer loyalty, particularly for those willing to pay a slight premium for perceived quality. There is, however, sometimes a tension between tradition and market-driven innovation that warrants attention. The cheese’s PDO framework demands rigorous adherence to production methods, which can occasionally limit immediate flexibility. Yet, this very constraint can serve as a point of difference, reminding retail buyers and foodservice operators that not all cheeses are created equal. By highlighting FETA PDO’s unique production criteria, brands emphasise the authenticity that modern consumers increasingly value, thereby justifying its placement at a higher price tier or in more specialised sections of a chiller. Such strategies should be rooted in clear-sighted data analysis. Ongoing category research reveals that while staples such as Cheddar still dominate volume sales, niche and specialty varieties often inspire stronger growth percentages. FETA PDO, when positioned effectively, can capitalise on this trend. Decision-makers using their own data - loyalty metrics, focus-group findings, or insights from store-level observational studies – can align with broader market intelligence. In some regions of the UK, consumers gravitate to unique flavour experiences. In others, they might respond best to messaging around healthfulness or ethical sourcing. A nuanced, region-by-region or even store-by-store approach can amplify results. Those adding FETA PDO into broader category portfolios will benefit from reinforcing the cheese’s story through carefully curated displays, thoughtful packaging, and engaging promotional campaigns. Buyers and brand teams that communicate the cheese’s PDO’s origins, generational know-how, and controlled production standards invite shoppers into a narrative of tradition and quality. When coupled with versatile recipe ideas and demonstrations - either online or in-store - this approach can elevate FETA PDO beyond a mere commodity cheese. Instead, it becomes an essential ingredient in a consumer’s culinary journey, stimulating repeat purchases and stronger loyalty. In moving forward, the collective evidence suggests a market environment in which FETA PDO is well-poised to contribute both to immediate sales objectives and to a broader brand narrative. By treating it as part of a holistic strategy - one that recognises the cheese’s heritage and values its potential to spark consumer interest. FETA PDO ultimately represents an opportunity: it leverages genuine cultural heritage, meets consumer appetite for unique flavors, and offers room for imaginative brand storytelling. When aligned with data-driven insights into evolving UK cheese consumption, it can serve as a resilient, forward-looking addition to a retailer’s category portfolio.