Cheese finding its special niche in China

Groupe Bel has been selling an average of 500 to 700 metric tons of cheese every year in China, volumes that are still significantly low compared to its home market, but with numbers having more than doubled in the past two years.

"Five years ago, the market for cheese products was still very slow," said Gaelle Launay, general manager for China and South Korea at Groupe Bel. "However, it started accelerating in the past three years, helped by fast-food chains in China."

China consumed about 70,000 tons of cheese in 2014, of which almost 94 percent were imported, according to market analysis firm Mintel Group Ltd.

China's economic growth has not only translated into more adventurous palates but also led to higher nutrition awareness, with consumers paying greater attention to food properties.

Outside of fast-food chains, cheese is gaining popularity in supermarkets because of its high levels of protein and calcium content.

Andrew Kuiler, managing director at Shanghai-based food and beverage marketing and insights agency the Silk Initiative, said: "Cheese has become popular with Chinese children. Parents are clearly recognizing its nutritious value."

Producers agree that there are still plenty of opportunities in supermarkets to attract new cheese consumers.

Groupe Bel, which claims to have a 6 percent share in hypermarkets and supermarkets in Beijing, Guangzhou and Shanghai, said it is focusing on healthy cheese snacks.

"The retail cheese market in China is experiencing double-digit growth," said Gaelle Launay.

"In 2014, it expanded more than 20 percent, growing twice as much as the retail dairy market."

Michael Mullen, senior vice-president of corporate & government affairs at United States-based Kraft Heinz Co, said: "Our company has been selling cheese in China, including Kraft Parmesan Cheese, since 2014.

"And we believe there is still significant untapped potential to internationalize many of our brands."

emmagonzalez@chinadaily.com.cn

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