The mozzarella market - Italy (2023)

1.2 The global market

In **** the world cheese market is estimated at $***.** billion. Future forecasts indicate timid but steady growth in the coming years. Between **** and ****, the cheese market is expected to grow at a compound annual rate (***) of *.* percent globally, under which it could touch a total value of more than $*** billion. Cheese Market World, ****-****, in billions of dollars Precedenceresearch As for the mozzarella cheese segment, the world market for this product reached a value of $**.* billion in ****. The projected compound annual growth rate (***) for the coming years is twice that of the more general cheese market and stands at *.* percent. Between **** and ****, the global mozzarella market could, therefore, exceed a total value of $** billion.

Mozzarella Market World, ****-****, in billions of dollars Researchandmarkets

1.3 The Italian market

In recent years, the dairy sector has been growing in Italy. Between **** and ****, the sector's total turnover grew by *.* percent to more than ** billion euros. Growth is especially evident between **** and ****, a period during which business turnover rose by *.* percent. Dairy industry turnover, hygienic treatment, milk preservation Italy, ****-****, in billion euros Istat However, the increase in enterprise turnover in the industry is not reflected in an increase in Italians' spending on cheese and dairy products. Between **** and ****, Italians' total spending on cheese and dairy products decreased by *.* percent. In particular, it is possible to see a growth in spending until **** (***).

Total expenditure on cheese and dairy products Italy, ****-****, in billions of euros *the figure for **** refers to spending on cheese only Istat

Then considering the value of production sold of scamorze, mozzarella, and fiordilatte, between **** and **** this increased. Over the *-year period considered, the value of production sold increased from *.** billion euros to *.** billion euros, marking a growth of **.* percent. After falling in **** (***).

Sold production of scamorze, mozzarella, fiordilatte Italy, ****-****, in billion euros Istat

The increase in the turnover of companies in the sector and the value of production sold in the face of a decline in household ...

1.4 Import - Export

Italy is a net exporter of mozzarella cheese. Between **** and ****, the coverage ratio, given by the ratio of exports to imports, remained stably above ***%. Specifically, the value of exports in the period under consideration grew by **.* percent, from ***.* million euros to ***.* million euros. Imports are also growing, albeit with an uneven trend. Between **** and ****, the value of Italian mozzarella imports grew by **.* percent, from ***.* million euros to ***.* million euros.

Import - export cheese and curd Italy, ****-****, in UN Comtrade

Italy's import-export trade relations for mozzarella cheese take place entirely within the borders of Europe. Considering the main countries from which Italy imports mozzarella, Germany is the main trading partner, collecting **.* percent of the total value of Italian imports. It is followed by France (***). Other countries collect **.* percent of the total value of imports.

Main countries of origin of fresh cheese and curd imports Italy, ****, % UN Comtrade

In the case of exports, the main partners are also European countries. However, the trade flow is highly fragmented among different countries. The main of these is France, which alone collects **.* percent of the total economic value of exports. It is followed by the United Kingdom (***). Japan is the main non-European trading partner, accounting ...

1.5 The consequences of the Russian-Ukrainian conflict

The outbreak of the Russian-Ukrainian conflict in February **** resulted in, among other things, a general increase in the consumer price index. The mozzarella market is particularly affected by the outbreak of the conflict. Between January **** and September ****, the consumer price index for fresh cheese and dairy products rose **.* points, representing a **.* percent increase in consumer prices. The increase over the past ** months is * times that recorded during the entire ****-**** period. Compared to ****, prices have increased by **.*%.

Consumer price index fresh cheese and dairy products Italy, ****-****, base ****=*** Istat

The increase in consumer prices is nothing but a reflection of the increase in producer prices. Between January **** and August ****, the producer price index for the dairy industry increased by **.* points, representing a price increase of **.* percent. The increase in producer prices recorded over the **-month period under consideration is almost * times that recorded during the entire ****-**** period. Compared to ****, the production of cheese and dairy products increased in price by **.*%.

Dairy industry producer price index Italy, ****-****, base ****=*** Istat

2.1 Demand in Italy

In order to analyze the demand for mozzarella cheese in Italy, the two main segments are considered: households and restaurants.

Households

In recent years, average monthly household spending on cheese and dairy products, which include mozzarella, has been on the rise. Between **** and ****, Italians increased their spending on this type of product by *.* percent, from **.** euros per month to **.* euros per month. However, the trend is not homogeneous during the period under consideration: while between **** and **** spending grows steadily (***) between **** and **** this drops by *.*%.

Average monthly household expenditure on cheese and dairy products Italy, ****-****, in euros Istat

Regarding frequency of consumption, between **** and **** the percentage of Italians who consume cheese at least once a day drops. In fact, over the *-year period considered, the share of Italians who eat cheese at least once a day dropped by *.* percentage points, amounting to

People aged * years and older who consume cheese at least once a day Italy, ****-****, % Istat

Catering

Regarding the demand for mozzarella cheese in the catering sector, it is crucial to consider establishments that produce and sell pizza. In fact, mozzarella cheese represents one of the most widely used ingredients in the preparation of pizza, and consumption in Italy ...

2.2 Demand drivers

Drivers of demand for mozzarella cheese include the age of consumers and occupational status. In the absence of specific data for the mozzarella segment, those for the cheese segment in general, which obviously includes mozzarella, are analyzed.

Age

Daily cheese consumption is strongly related to the age of the consumer. As shown in the graph below, daily consumption seems to decrease with advancing age: while among children between the ages of * and ** almost */* consume cheese every day, in baby boomers the share drops to **.*%. However, it can be seen that in the over-**s age group, daily cheese consumption undergoes an increase (***).

Share of people who consume cheese at least once a day, breakdown by age group Italy, ****, % Istat

Professional position

Considering instead the professional position of consumers, an inversely proportional relationship between professional position and daily cheese consumption can be appreciated. While among executives, entrepreneurs and freelancers only **.* percent are daily consumers, among students and those who have retired from work the share rises to **.* percent and **.* percent, respectively.

People aged ** and older who consume cheese daily, breakdown by occupational position Italy, ****, % Istat

2.3 Geographical distribution of demand

To analyze the geographical distribution of demand, the share of people over the age of three who consume cheese at least once a day and the average monthly household expenditure on cheese are considered.

Looking first at cheese consumption, the North has the highest share of the population consuming cheese at least once a day, accounting for **.* percent of the total. This is followed by the Islands, where **.* percent of the population consumes cheese at least once a day, and the Center with **.* percent. Finally, in the South only **.* percent of the population consumes cheese daily.

The distribution of average monthly expenditure on cheese closely tracks the distribution of daily consumption. In the North, households spend the highest average amount of **.** euros per month. This is followed by the South, thanks mainly to the consumption recorded in the Islands, with an average monthly expenditure of **.* euros. Finally, in the center, households spend an average of **.** euros per month on cheese purchases.

2.4 New demand trends: consumption of mozzarella di bufala campana PDO is growing

Mozzarella di bufala campana is the PDO cheese with the highest increase in production between **** and ****: +**%, compared with an average growth of **% in Italian production protected by the EU. ** million *** thousand kilos of PDO mozzarella were produced in ****, a growth of *.*% over the previous year. On the domestic market, in **** the consumption of mozzarella di bufala campana is distributed almost proportionally among different areas of the country, demonstrating a uniform recognition of the quality and goodness of the product. The main share (***)

Production of mozzarella di bufala campana PDO Italy, ****-****, in thousands of tons CLAL

3.1 The market structure

To analyze the structure of the mozzarella market, enterprises under Ateco Code **.**.* "Production of milk derivatives" are considered. In particular, the number of active enterprises, the number of employees in the industry and the legal form of enterprises will be analyzed.

Number of enterprises

The number of enterprises active in the milk derivatives production sector appears to have been shrinking in recent years. Between **** and ****, enterprises declined by **.* percent, from **** in **** to **** in ****. The trend is homogeneous throughout the entire period, and the negative changes recorded between years show similar values.

Milk derivatives production enterprises Italy, ****-****, in number Istat

Employees Unlike the number of enterprises, the number of employees in the milk derivatives production sector has remained stable in terms of numbers. Between **** and **** the percentage change is *, and analyzing the percentage changes between years it is possible to show a slight decline between **** and **** (***). Employees milk derivatives production enterprises Italy, ****-****, in thousands Istat Legal form Finally, considering the legal form, a marked fragmentation among enterprises can be seen. Limited liability companies collect more than */* of the total business (***) while sole proprietorships and cooperatives account for **.*% and **.*% of the total, respectively. Finally, general partnerships and other legal forms collect ...

3.2 The value chain

Milk processing is a complex process by which raw milk is transformed, in this case, into mozzarella cheese. The different stages of this process are:

Pasteurization: the milk is heated to eliminate pathogenic bacteria, preserving food safety. Acidification: lactic acid cultures are added to lower the pH of the milk, beginning the coagulation process. Coagulation: acidified milk is further treated with rennet, which allows curd to form. Curd cutting: at this point with a special tool, the curd is broken into many parts, causing it to sink into the whey. After breaking, the curd is left to acidify under whey. After some time, the solid part separates from the whey and is placed on tables to strain until it reaches the right PH, to release the excess whey. Spinning: the curd is salted and then passed through the spinning machine, a machine that, with water at **°, transforms the curd into pasta filata, which is then cut into thin strips, chopped and processed. Shaping: next, mozzatura takes place, which is the portioning of the pasta filata into the various shapes such as balls, braids or cherries. Salting: the addition of brine imparts flavor and acts as a natural preservative. Cooling and ripening: ...

3.3 The main manufacturers

The following is a list of the main Italian producers of dairy products that include mozzarella in their offerings:

Galbani s.p.a: founded in ****, since **** it has been part of Groupe Lactalis, the French Group, the world's leading producer in the dairy sector, with a turnover of **.* billion euros and more than **,*** employees worldwide. Thus, in **** Gruppo Lactalis Italia was born, bringing together within it the Galbani world and the other Italian companies already part of the French group.the Group employs about *,*** people and with Spa Egidio Galbani has five plants in Italy, all with production lines certified according to the BRC Global Standard Food and with UNI EN ISO ***** environmental certification.

Latteria Soresina: founded in **** as a milk processing cooperative, currently has about *** members and is represented by the companies where the milk processed by Latteria Soresina is produced. The company thus boasts a wide range of dairy products of high sensory quality, with service contents suited to meet the needs of all its customers and consumers, all over the world.Today Latteria Soresina is the world's leading producer of the famous Grana Padano cheese, and occupies leading positions in other Italian excellences, such as butter, provolone and ...

3.4 The distribution

The distribution channels for mozzarella, and more generally for dairy products, are mainly represented by large-scale organized distribution and wholesale trade.

Large-scale retail trade

Between **** and ****, the total number of businesses active in large-scale retail decreased. During the period, the total number of businesses decreased from **,*** to **,*** (***).

Enterprises active in large-scale retail trade Italy, ****-****, in number Istat

Wholesale trade

Considering Ateco Code **.**.* on "wholesale trade in dairy products and eggs," the total number of businesses appears to be growing between **** and ****. Over the *-year period considered, the total number of activities increased from **** in **** to **** in **** (***). The trend appears to be positive during the entire period, and the growth is particularly concentrated between **** and ****, when within a single year the number of businesses grew by **.*%.

Dairy and egg wholesale enterprises Italy, ****-****, in numbers Istat

Direct sales

Dairy farmers expect growth in direct sales in the coming years, a channel that currently accounts for about ** percent of national sales. It must be said, of course, that for most producers, large-scale retail will remain the predominant channel, but for * out of ** dairies it will be direct sales that will register the most significant growth dynamics.(***)

4.1 Type of the offer

Mozzarella is a dairy product, which is an unripened derivative of milk that retains measurable amounts of lactose. In more detail, mozzarella is a fresh, soft stringy cheese that is suitable for immediate consumption.Mozzarella is a typical food of the Mediterranean basin; the warm climate of these areas has led its inhabitants to take advantage of the rapid acidification of milk and related coagulation to produce mozzarella. The best-known types of mozzarella are:

Mozzarella di bufala campana DOP: prepared from buffalo milk from specific areas of Campania, lower Lazio, Puglia and Molise. Buffalo milk mozzarella: similar to the previous one, but made with buffalo milk from other regions. Cow's milk mozzarella: made with fresh cow's milk and processed according to traditional methods. Stracciatella: soft and creamy variant of mozzarella, made by mixing pieces of mozzarella curd and fresh cream. Burrata: delicious Apulian product consisting of a thick layer of mozzarella cheese enclosing a heart of pasta filata and cream. Smoked mozzarella: traditional mozzarella smoked using a natural method, characterized by a thin, smooth amber-colored rind and an intense, smoky flavor.

Mozzarellas of various shapes are also found:

spherical (***) with a head chunky or cherry-shaped braided

The nutritional values of the ...

4.2 The prices

The following is a list of prices for some types of products: fior di latte mozzarella, mozzarella di bufala DOP, smoked mozzarella, and other types of products.

Fior di latte

Mozzarella di Bufala DOP

Smoked Mozzarella

Other products

4.3 New supply trends: the plant-based alternative

Recent changes in mozzarella offerings substantially reflect trends in the more general agribusiness sector. In particular, the growing attention regarding environmental issues and the reduction of pollution at the production stage is prompting an increasing number of market players to adopt plant-based product lines. Forexample, start-up Dreamfarm has launched a plant-based 'mozzarella' made from fermented almonds, which stands out for its short list of natural ingredients and favorable nutritional values. The products are made from a paste of fermented almonds (***)

The market for non-dairy cheeses is expected to grow in the coming years. As for Europe, one of the world's major market segments in economic terms, the plant-based cheese market was worth $***.** million in **** and is expected to be well over $* billion by **** thanks to a compound annual growth rate (***) of **.*

Plant-based cheese market Europe, ****-****, in millions of dollars Mordorintelligence

%.

5.1 The legislation

The mozzarella market, as with many other agricultural products, is regulated by various laws and regulations at both the national and European levels. These laws are concerned with ensuring the quality, food safety and origin of the product. Some of the main laws and regulations for the mozzarella market in Italy are:

Regulation (***) principles Regulation (***) No. ***/****: establishes specific rules regarding products of animal origin intended for human consumption, including cheese. Regulation (***), ingredients and allergies. Law No. *** of June **, ****: establishes standards for the packaging of fresh pasta filata cheeses. Prime Ministerial Decree May **, ****: on the recognition of the designation of origin of "Mozzarella di Bufala Campana" cheese. Ministry of Agriculture Food and Forestry Decree December *, ****: implementing EU Regulation ****/**** establishes the obligation to indicate the origin of the raw material of dairy products in Italy such as UHT milk, butter, yogurt, mozzarella, cheese and dairy products.

6.1 Segmentation

Major producers of milk derivatives (***)

PDO buffalo mozzarella producers

• Galbani
• Latteria Soresina
• Ambrosi s.p.a
• Zanetti s.p.a
• Spinosa s.p.a
• Azienda Agricola Ponte Reale s.r.l
• Cilento s.p.a
• Europomella s.p.a
• Diano Casearia s.p.a