- Dairy and soy market highly fractured
- Kraft Heinz facing lawsuit over cheese product’s labeling
- S. soybean production slightly lower than forecasted
The dairy and soy market is poised for modest growth through 2020, according to a report by Canadean, with growth affected by supply and demand as well as political and economic factors.
The most growth will be seen in developing nations with Canadean forecasting China, India and Russia witnessing the highest growth.
Despite the popularity of dairy and soy products, the market is highly fractured. The top five brands each hold only a 6% market share.
When it comes to cheese brands, Kraft is king. It is the largest cheese brand in North America, and it is also popular in Asia where it holds a 25% market share in Singapore and a 43% share in Hong Kong.
Kraft’s manufacturer, Kraft Heinz, is the subject of a class-action lawsuit that disputes the “100% grated” claim on the company’s canned Parmesan cheese.
Customers say the labeling is inaccurate because the product also contains the filler cellulose which is made from wood pulp.
“This lawsuit is based solely on plaintiffs’ unreasonable reading of the name of Kraft Heinz’s well-known product, 100% Grated Parmesan Cheese,” Dean Panos, a partner at Chicago’s Jenner & Block told The National Law Journal. “Common sense dictates that most packaged food products that remain on store shelves for an extended period of time routinely contain ingredients to make them shelf-stable and palatable.”
In recent years, the number of lawsuits over food labeling has grown. Most defendants try to get cases dismissed using similar reasoning to Panos’s.
Meanwhile, in mid-January, Kraft Heinz announced it would introduce Cheesy Bites, which uses Velveeta cheese, a brand it introduced in 1928. The move comes as companies seek new ways to cater to the on-the-go snack-products market in North America.
Soy Bean Production
The soy portion of the soy and dairy market is dominated by processed soybean products. Soy products are used as a substitute for dairy and meat. They are used by vegans, because of a fatty acids and vitamins content. People who are lactose intolerant also are attracted to soy products.
In the United States, the third largest region in the dairy and soy market, soybean production last autumn was slightly lower than forecasted. The US Department of Agriculture had predicted a yield of 52.5 bushels per acre for November, but actual production was 52.3.
According to the United States Department of Agriculture (USDA), 2.9 bushels of soybeans were in storage in December, a 7% increase from the previous year.
- In 2015, market value was $617.9 billion.
- In 2015, the market grew at a compound annual growth rate (CAGR) of 4.6%.
- In Russia, the market is forecasted to grow at a CAGR of 8.7% between 2015 and 2020.
- Globally, the largest markets are China, India and the United States.
- In North America and Western Europe, private-label brands have a stronger presence than in other regions.