Not a day goes by where we don’t hear about the current financial climate, the effects of inflation or the reducing purchasing power of Scottish consumers. Many sectors in the food and drink industry have wrestled with these challenges, impacting retailers who have had to adapt to succeed in today’s financial landscape.

In most sectors, rising costs have played a part, and consumers have changed their purchasing patterns to be more cost-effective. But when it comes to cheese, cost doesn’t seem to have hampered consumers’ appetite as much. We observe consumers’ cheese preferences becoming more upmarket and diverse. They are willing to spend more, and more generally, the retail market profile has evolved. It could almost be described as a "renaissanceW as the general public rediscover forgotten cheese varieties and give them new life in a retail setting.

This evolution provides a world of opportunities for our producers at home as artisan and farmhouse products are experiencing increased popularity. One of the key origins of this stems from Covid-19, and the increased desire to recreate the fine dining experience at home. Consumers began purchasing products they would normally find in restaurants. But as the pandemic becomes a distant memory, the trend remains as shoppers still have the taste for these artisan offerings. The range of cheese options on our shelves has never been so diverse, but there is still a gap for Scottish producers to do even more to capitalise on this trend.

The importation of goods from the Continent has become harder due to Brexit, and with the gap needing filled, there is a renewed focus on British cheese. Scottish producers have the chance to establish themselves with sales of speciality cheese still lagging behind other parts of the UK. As consumer interest for artisan cheese rises, so will the demand for locally produced varieties with diverse tastes, flavours and textures.

The renaissance of the cheese retail market is not contained to the sophisticated world of artisan cheeses however, as long-established varieties have also rebounded. Stirlingshire-based Graham’s Family Dairy noted massive sales boost to their cottage cheese products on the back of viral TikTok trends, to sales levels not seen since the 1980s. Cottage cheese sales in Scottish grocery retail are even outperforming the rest of Britain by 2.5%. The unpredictability of social media adds another dynamic for our producers, and those who can adapt have a wealth of new audiences to take advantage of while expanding their business. But we cannot forget the country’s favourite cheese, cheddar. It remains Scotland’s biggest cheese category and it is still growing, notably by 6.8% in the last year, if slower than other types of cheese. This growth represents a further opportunity for our locally-based producers to take advantage of the positive retail environment.

The nation’s love of cheese has not been dampened by the current financial climate and it’s great to see the retail market growth during this time. What is promising is how brands are adapting to this changing landscape to seek out new audiences for their products. If Scottish companies can jump onto the bandwagon, the future of the sector looks very promising indeed.

Anne-Laure Farrar is UK Market Insight Manager with The Knowledge Bank

Agenda is a column for outside contributors. Contact: agenda@theherald.co.uk