Evolution of China’s Cheese Industry

The Chinese cheese market currently accounts for only five percent of dairy consumption. Unlike other markets where cheese consumption per capita exceeds ten kg, China's cheese consumption is modest, at 2.2 kg to 1.8 kg, similar to that of South Korea and Japan.

Cheese is becoming increasingly popular in major cities such as Beijing, Shanghai, Guangzhou, and Shenzhen. The cheese penetration rate in these cities has risen to 38 percent by 2021, reflecting a shift in local preferences and palates.

As the market expands, innovative categories of cheese-infused dishes are emerging, especially in the restaurant sector. By 2022, restaurant sales had risen to 163,200 tons, while retail sales climbed to 86,100 tons.

The Chinese cheese market is relatively new and represents an exciting frontier with immense potential. Consumer products, mainly reconstituted cheese, demonstrate higher markup rates than business products, highlighting varying profit margins and diverse consumption patterns.

Cheese in the Chinese market primarily comes from Europe, North America, and Australia. These foreign brands are also establishing local production facilities.

The cheese market in China is projected to exceed 100 billion CNY by 2035, indicating an upward trajectory and venturing into the mother and child food market.

Innovations, such as CHEESPIRIT's 'Five-Dimensional Natural Beauty Cheese,' cater to evolving consumer needs, addressing more than just calcium and protein.

SIAL in China will leverage SIAL SHANGHAI and SIAL Shenzhen to help foreign companies in the cheese sector capture market share in 2024 through strategic measures.