The cheese market is highly pervasive, with a 99% penetration rate and increasing per capita consumption and expenditure.
Butter consumption has also increased over the past five years, but health concerns regarding its saturated fat content remains an impediment to future growth.
The industry has also benefited from clever and timely product innovation such as convenient packaging, the addition of functional and healthy ingredients, and a focus on provenance.
In the five years through 2012-13, industry revenue is estimated to grow by an annualised 1.6% to total £3.2bn, with a 0.6% increase in 2012-13.
Future prospects for the industry are bright, according to the research. Over the five years through 2017-18, industry revenue is expected to continue to increase.
The slow economic recovery over the next few years is expected to stifle growth for the industry as consumers rein in spending and trade down food purchases in order to save money.
However, the forecast stability in commodity prices and continued product innovation will support industry growth in the longer term.
Source: IBISWorld
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