Spread fast: Industry export revenue growth has been boosted by the weakness of the pound

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 2.3% over the five years through 2019-20, although revenue did rise in 2017-18 and is expected to expand by 0.2% in the current year, to reach £2.8 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 4.4% over the five years through 2019-20...read more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Producers have been unable to fully pass on cost increases to downstream retailers
  • High-profile advertising campaigns have promoted alternatives to industry products
  • Upstream farmers may face a funding cut that could increase input prices
  • Industry Report - Starting a New Business Chapter

    The biggest impediment to future industry participants is the secure position of the industry's major companies. The top four companies are expected to account for 56.1% of revenue in the current year and they wield strong buying power, have access to resources and benefit from favourable relationships with upstream suppliers and downstream customers. Furthermore, they have the advantage of having economies of scale and scope, as many of the large players are involved in various different aspects of dairy product and food manufacturing. However, barriers are much lower in the speciality cheese segment, which is dominated by small local producers. Ris...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
  • Exchange rate - euros per pound
  • Population

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

  • Industry Outlook
  • Trading and funding
  • 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
  • Milk & Cream Production

  • 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
  • Chart: Cost Structure Benchmarking – Sector vs Butter & Cheese Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Butter & Cheese Production Industry

  • Industry Globalization
    Arla Foods Ltd, Dairy Crest Group Ltd, The First Milk Cheese Company Limited,
  • Table: Arla Foods Ltd - financial performance
  • Table: Dairy Crest Group Ltd - 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
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)
  • Distribution (2011-2025)

  • 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:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    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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