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Australian Cheese Lovers Embrace Artisanal and Vegan Options Amid Soaring Cheddar Prices

Australia 05.04.2024
Source: The DairyNews
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As the price of supermarket cheddar skyrockets to $16/kg, Australian consumers are pivoting towards artisanal and vegan cheese varieties, seeking both quality and affordability in their dairy choices.
Australian Cheese Lovers Embrace Artisanal and Vegan Options Amid Soaring Cheddar Prices
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Driven by inflation and dairy industry volatility, the cost of cheese has surged by 23% over the past two years, prompting a decline in total sales. Dairy Australia's analysis reveals that even specialty cheeses, sold in smaller quantities, have seen a notable per kilo price hike, with everyday cheese now averaging at $16 and entertaining cheese at $31.

Independent producers, like Harvey Cheese in Western Australia, have managed to navigate these challenges by focusing on labor-intensive artisanal production, creating a niche that larger producers find difficult to penetrate due to scalability issues. Pieter Loitering, the general manager of Harvey Cheese, highlights the company's strategic decisions to partner with independent suppliers and supermarkets instead of industry giants like Coles and Woolworths, allowing them to maintain sustainable margins.

This shift in consumer behavior towards specialty and dairy-free alternatives is corroborated by market analysis from IBIS World, indicating a preference for goat, feta, and plant-based cheeses over traditional cheddar varieties. Notably, IBIS projects a rebound in domestic cheese revenue by 0.2% over the next five years, driven partly by the growing popularity of plant-based options.

Recognizing this trend, major Australian cheese producer Bega has already ventured into the plant-based market, positioning itself to cater to evolving consumer preferences for healthier and diverse cheese options. As Australian cheese enthusiasts embrace these changes, the landscape of the cheese market continues to evolve, with artisanal and vegan varieties becoming increasingly prominent choices on grocery shelves.

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