Market Dynamics
The Israeli frozen and chilled cheese market is set to experience an expansive growth in the coming years. This is predominately due to increasing demand from urban consumers and the proliferation of convenience-related products, such as frozen pizza and potato chips, which require cheese as an ingredient. Furthermore, the rise in disposable incomes, coupled with the emergence of innovative product applications, will further drive market growth. The dynamics of the market are further bolstered by the rising popularity of dairy products, such as hard, processed, soft and cream cheese. The health and nutritional benefits associated with cheese, such as its rich calcium content, support the growth of the category. Vendors are thus focused on launching innovative products, such as organic cheese, to address the changing dietary needs of consumers. As such, the market is steadily transitioning to offer premiumization, quality-related attributes, and natural and organic cholesterol-free variants. The use of aromatic, pungent, additive-free and preservative-free flavors is an attractive proposition for eco-conscious consumers and is fueling the demand for these products. In response to these market dynamics, vendors are engaging in partnerships and collaborations with local cheese producers to offer unique product offerings.
For example, in 2018, Frito-Lay Israel, a subsidiary of PepsiCo, announced its partnership with Israeli cheese producers Uri Binyamin Dairy & Cheese Factory and Achdut Dairy Industries, to offer a portfolio of cheese-based flavors, such as cheddar and goat cheese. In addition, to meet the needs of changing consumer preferences, vendors are focusing on innovations and investments to cater to their customer needs. For example, in 2018, Feta Factory, an Israel-based cheese producer, invested in new production technologies to facilitate increased production capacity. Overall, the Israeli frozen and chilled cheese market will experience significant growth in the coming years, driven by urbanization and changing consumer preferences. Moving forward, vendors in the space should capitalize on the demand for convenience and healthy products, as well as focus on developing innovative offerings to meet the ever-evolving needs of consumers.
