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The global halloumi cheese market is anticipated to reach a market value of US$ 851.40 million by 2030. In 2021, the market was US$ 425.14 Million. It is expected to rise with of 8.5% CAGR.
The market is expected to benefit from factors such as rising awareness about the health benefits of consuming halloumi cheese and the expansion of the food and beverages industry. However, certain factors have restricted the growth of the regional market, such as strict EU regulations on halloumi cheese; on October 2021, European Union granted halloumi the protected designation of origin (PDO) status. However, there exist many unresolved disputes between Cyprus halloumi cheese farmers and the government over PDO specifications (goat or sheep milk in the halloumi mix).
The market is observed to have monopolistic competition. The top four players collectively account for a share of around 18.2% in the market, with Nordex Food holding the highest share of 5.1%, closely followed by Achnagal Dairies, Arla Foods Company, and Petrou Bros Dairy Products. These big market players focus on having a long-term impact on clients and partnering with other organizations to hold a major share in the marketplace.
Rising awareness of benefits associated with the consumption of halloumi cheese
Halloumi cheese is a semisoft cheese with a rubbery texture that has its roots in the Middle Eastern country of Cyprus but is gaining popularity worldwide. Halloumi cheese has a high melting point so it can be warmed up without completely melting it, making it a great fit for salads, sandwiches, and many other vegetarian dishes moreover, halloumi cheese is also known to have low lactose content, making it relatively safer for lactose-intolerant people. The demand for halloumi cheese is increasing on the backdrop of its nutritional and health benefits. According to the United States Department of Agriculture (USDA), one ounce (28 g) serving of halloumi cheese contains 390 mg of calcium, 6g of protein, 350 mg of sodium, 1g each of sugar and carbohydrates, and 90 calories. It is considered a protein-rich product as 6 grams provide 12% of the daily suggested value of 50 g. Halloumi cheese finds high demand in Europe, majorly in the U.K.
EU regulations on halloumi cheese
On October 2021, European Union gave halloumi the protected designation of origin (PDO) status. However, there exist many unresolved disputes between Cyprus halloumi cheese farmers and the government over PDO specifications (goat or sheep milk in the halloumi mix). In this case, any fallacies on part of Cyprus’ supply of Halloumi can affect the market as 40% of the cheese produced in the country is exported to the U.K. only. The regulation specifies that the cheese must be made with at least 51% sheep or goat milk to come to the marketplace. The PDO recognition might have been taken as a step toward supporting the commercial cheese producers in Cyprus.
Expansion of the retail industry
In 2022, global retail sales are estimated to grow by 5%, exceeding USD 27 trillion in sales. Due to low unemployment rates and steady electricity prices in the US and the rest of the world, the retail sector has grown immensely in the past few years. Expansion of the retail industry has led to the diversification of sales channels. Due to the limited or local production of halloumi cheese, many manufacturers have been facing a large gap between demand and supply of halloumi cheese. However, with the increasing penetration of restaurants and online food delivery apps, many manufacturers are now able to bridge this gap.
Covid-19 impact on the market
The covid-19 pandemic has put immense economic stress on the overall supply chain and logistics of the global food industry. This resulted from the unprecedented shortage of farm labor triggered by movement restrictions and lockdowns, bottlenecks in processing, transport, and logistics activities, as well as momentous shifts in demand. The market witnessed a dip of 3.09% YoY in 2020. People preferred to eat at home and refrained from going to grocery stores/ supermarkets or restaurants. As the effects of the pandemic fade, the demand for ready meals is expected to rise, which, in turn, would propel the market.
Product Type Analysis
In 2021, the matured halloumi cheese segment accounted for the highest market share of 57.1% in terms of revenue. It is expected to register an 8.3% CAGR between 2022-2030. The fresh halloumi segment is expected to jump with the highest CAGR of 8.7% over the forecast period. The high demand for fresh halloumi cheese is driven by an increase in cross-cultural interaction brought about by frequent travel and a rise in the popularity of eating out as a result of rising disposable incomes. Cheese manufacturers are constantly experimenting to create fresh iterations of the product.
Conventional halloumi cheese is expected to continue to generate the bulk of sales due to its widespread availability and reasonable cost over the forecast period. In 2021, the conventional halloumi cheese segment accounted for the highest market share at 70.6%. The demand for conventional halloumi cheese is anticipated to increase as a result of the rise in the number of food service establishments offering innovative and regional cuisines globally. However, the rising customer demand for wholesome foods because of the health advantages of organic products is expected to drive the demand for organic halloumi cheese.
Most of the global halloumi cheese market's revenue came from plain cheese in 2021, which accounted for 45.4% market share. The segment is anticipated to register an 8.7% CAGR over the forecast period. In terms of revenue, the other category accounted for the second-largest market share in 2021 and it is anticipated to rise with the highest CAGR of 8.7% over the forecast period. The category is anticipated to benefit from the consumers' growing preference for flavored products over the plain form due to their taste.
Distribution Channel Analysis
The offline segment, including supermarkets and hypermarkets, accounted for the highest revenue share of 87.6% in 2021. Customers feel more at ease selecting products, particularly grocery and dairy goods through offline stores as they allow customers the opportunity of picking the right product from a range of choices while also making sure that the product is high quality and fresh. However, the online distribution channel segment is expected to register the highest CAGR. One of the key factors driving the growth of the online distribution channel is the ongoing COVID-19 epidemic. To compete with large e-commerce platforms such as Amazon.com, retail behemoths like Walmart and Kroger are invested in online sales capabilities.
The global halloumi cheese market is dominated by Europe, with a market share of 35.9% in terms of revenue. Since authentic halloumi cheese is only produced in Cyprus, the high demand from Middle Eastern European nations has given competitors a logistical advantage.
However, the Asia Pacific region is expected to expand at the highest CAGR of 9.1% over the forecast period, with China expected to occupy a major share. Growing consumer knowledge of healthy eating practices in the region is expected to generate an increase in demand for nutrient-dense foods, favoring the market for halloumi cheese.
By Distribution Channel
|Market Size Value in 2021||US$ 425.14 Million|
|Expected Revenue in 2030||US$ 851.40 Million|
|Unit||Value (USD Mn)|
|Segments covered||By Type, By Nature, By Flavor, By Distribution Channel, By Region|
|Key Companies||Achnagal Dairies, Almarai, Arla Foods, Dafni Dairy, Lefkonitziatis Dairy Products, Nordex Food, Olympus Cheese, Petrou Bros Dairy Products, Pittas Dairy Industries, Uhrenholt, Zita Dairies, Other Prominent Players|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
On the back of rising customer desire for wholesome foods because of the health advantages of organic products, there will certainly be a rise in demand for organic halloumi cheese.
Based on flavor, the global halloumi cheese market is segmented into plain, salty, tangy, and others.
During the forecast period, the online distribution channel is expected to grow at the highest CAGR of 9.1%.
The global halloumi cheese market is projected to grow at a CAGR of 8.5% during the forecast period 2022-2030.
Factor such as increasing changes in consumers' eating habits and shifting preferences toward the Mediterranean diet is driving the growth in the global halloumi cheese market.
The main barrier to the growth of the halloumi cheese market worldwide is ingredient adulteration. Additionally, cheese is not generally regarded as being very healthy, and people who are concerned about their health frequently avoid cheese because of its high fat and salt content, which also restrains the market's expansion.
Asia-Pacific region is growing with the highest CAGR during the forecast period.
Europe region holds the highest market share in the global halloumi cheese market.
US holds the major share in terms of revenue in the North America halloumi cheese market.
One of the most effective strategies to address the rising demand for halloumi cheese has been thought to be the genetic development of local goat and sheep breeds.
Type, nature, flavor, and distribution channel are the different segments in the global halloumi cheese market.
Achnagal Dairies, Almarai, Arla Foods, Dafni Dairy, Lefkonitziatis Dairy Products, Nordex Food, Olympus Cheese, Petrou Bros Dairy Products, Pittas Dairy Industries, Uhrenholt, Zita Dairies, among others.