Grated cheese becomes one of the most sought after markets in the dairy chain

The Brazilian grated cheese market moves around 25 thousand tons per year and has established itself as one of the most competitive segments of the dairy industry. However, behind the expressive volumes and the strong presence on the shelves, the sector faces challenges related to profitability, the consumer's perception of value and the growing search for differentiation.

According to Angelo Sartor, CEO of RAR Agro & Indústria, grated cheese has become one of the most sought after markets within the Brazilian dairy chain, bringing together large national brands and regional companies competing for retail space.

"It's an extremely competitive market. The volumes are significant, practically everyone consumes grated cheese. There are national leaders, but also many regional brands operating in this segment", he states.

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Despite the demand, the sector faces a situation considered contradictory from an economic point of view. Contrary to what many consumers imagine, grated cheese goes through an industrial process that adds costs and reduces the yield of raw materials. Still, it is often sold for lower prices than cheese sold in pieces.

Sartor explains that there is a misperception regarding the product. "Consumers tend to believe that grated cheese should cost less than a fraction of cheese. But the reality is just the opposite", he says.

According to the executive, to produce traditional grated cheese, the dairy uses ready-made cheese, which goes through a dehydration process to increase its shelf life and allow it to be sold at room temperature.

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"Grated cheese is nothing more than cheese that has been grated and dehydrated. When we remove the moisture, there is a loss of approximately 15% of the original mass. In other words, you take 100 grams of cheese and transform it into approximately 85 grams before packaging the product", he explains.

In practice, this means that there is less product available for sale after processing, in addition to the industrial costs involved in transformation and packaging. Even so, intense competition between companies ended up putting downward pressure on prices over the years.

"There was very great competition within this market and this ended up pushing the price of grated cheese to levels lower than what would be expected by the production process", says Sartor.

The fight for market share also led companies to look for new strategies to add value to the product. In recent years, some dairies have started to invest in premium, refrigerated and non-dehydrating versions, trying to replicate the experience of consuming freshly grated cheese.

RAR itself invested in this concept by launching a fresh grated cheese, which preserves sensory characteristics closer to the product consumed directly from a piece of cheese.

"The characteristics are the same as when you take a fraction of cheese and grate it on the plate. The product maintains more flavor, more freshness and delivers a different experience to the consumer", he states.

The challenge, however, lies in changing consumer habits. As the product needs to remain refrigerated, it no longer occupies the traditional space of conventional grated cheeses in the dry areas of supermarkets.

"Consumers are used to looking for grated cheese on the shelf. When it moves to the refrigerated area, there is a change in behavior that takes time to be assimilated", he explains.

The search for differentiation reflects a broader trend observed in the food industry. Instead of competing solely on volume, some companies started to invest in quality, origin of ingredients and more sophisticated consumer experiences.

In the case of RAR, the strategy is aligned with the company's positioning in the premium dairy market. The company operates in categories with higher added value and focuses on consumer loyalty through the quality of its products.

"We try to position ourselves not by volume, but by quality.

We have a loyal consumer who recognizes the characteristics of our products and seeks this differentiation", says Sartor.

Even with lower margins than those obtained from the sale of sliced cheeses, grated cheese continues to be considered a strategic product by industries. This is because it expands the presence of brands at points of sale and strengthens the relationship with the consumer.

"Often the margin is smaller than that obtained with cheese sold in pieces, but grated cheese has an important loyalty function. It keeps the brand present in the consumer's daily life and creates a connection with other products in the line", he explains.

The segment also benefits from wide national distribution. As practically all large dairy products operate in this category, grated cheese has become a fundamental product to take advantage of logistical structures, commercial channels and spaces already conquered in retail.

At the same time, the growth in consumption of premium products opens up space for new opportunities. The industry sees a growing number of consumers willing to pay more for quality, origin and differentiation, a movement that also affects the grated cheese market.

For Sartor, the tendency is for the sector to continue divided between high-volume products and options aimed at consumers who value specific attributes.

"The market will continue to have space for mass products, but also for those consumers who seek quality, flavor and a differentiated experience. It is in this segment that we believe and continue to invest", he pointed out.

https://stories.cnnbrasil.com.br/?post_type=web-story&p=582741

Source: CNN