Understanding the Cheese Market in China

Cheese, known as “奶酪” or “芝士” in China, has seen astonishing growth over the years. It is hard to believe how the market was able to evolve between 2017 when the per capita consumption of cheese was still less than 0.1 kg, and 2023 when it doubled to 0.4 kg. Thanks to a general increase in wages as well as food globalization encouraging people to try and purchase new things, the cheese market seems to be one of the most lucrative industries in the foreign food sector.

As of 2023, China cheese market accounted for 14.52 billion dollars, with a CAGR of 10% (2023-2028). Now considered one of the major dairy foods for Chinese consumers looking for healthy and natural products, the cheese sector in China will be a staple for any foreign company looking to expand its activities in the world’s most populous country.

In this article, we will present the cheese market in China, its opportunities for foreign sellers, and some tips to tap into the Chinese market.

Cheese: A Very Promising and Growing Market in China

There’s no denying that there has been an uptick in Chinese people craving dairy products like never before – as demonstrated by the recent craze over ice cream, milk products, yogurt, chocolate, and of course, cheese. However, it is clear that China is still far behind in terms of the production and consumption of cheese.

On the other hand, when looking at the market value of cheese worldwide, the market is expected to maintain sustainable growth in the years to come, with an estimated market value of $88.05 billion in 2023, to $105.93 billion in 2026, thanks to emerging countries that are slowing learning to purchase cheese and eat it on a daily basis.

Overview of the Cheese Market in China

Cheese is not part of China’s culinary tradition, except for some ethnic minorities living near the borders, like the Mongols and Tibetans. In fact, a few decades ago, the biggest consumers and producers of cheese were located in Inner Mongolia. At that time, it was common to travel and purchase cheese as a souvenir to take back home. But other than that, cheese was still considered rare in China.

Moreover, China’s population is characterized by having a large proportion of people who are lactose intolerant, thus contributing back then to the fact that they didn’t want to eat cheese. Thankfully, people are now aware that the fermentation process removes most of the lactose contained in cheese.

Compared to the long history and the deeper culture of cheese in other countries, China’s cheese market is still developing as 4/5 of the most popular cheese brands in China are foreign brands. Indeed, the cheese market is ushering in the “golden period” of development in China, thanks to dairy products that are gaining popularity among Chinese consumers.

Cheese is the top-selling product in China’s dairy products category, as its compound annual growth rate cheese sales between 2019 and 2024 are expected to reach 11.5%.

Moreover, by 2025, the projected cheese consumption in China is expected to reach 307.2 thousand metric tons, compared to 276 thousand metric tons back in 2018.

As of 2023, China cheese market size accounted for 14.52 billion dollars, with a CAGR of 10% (2023-2028). More than 90% of cheese is sold offline, with supermarkets and local stores being the main distribution channel options. The average price in 2023 was 22.59 US dollars per unit, placing cheese (also processed cheese) in the premium range of products, that a majority of people in China can’t afford.

What are the most popular kinds of cheese among Chinese consumers?

In China, more and more parents are seeking out cheese products for their children. This trend is mostly due to the younger generation (born between 1980 and 1990) becoming parents themselves and wanting to find new ways to feed their offspring healthier and natural products.

That’s why in China, cheese targeted at children is the most popular and lucrative cheese brand. And brands know how to catch Chinese parents eyes: their products are either shaped like sticks or come with stickers labeled “high in calcium and proteins”, attracting both children and parents.

On the other hand, even though Chinese consumers had the opportunity to travel more, including in Europe for example, to discover new culinary tastes, stinky cheese is still quite rare in China and was even forbidden by the Chinese government till 2017, because of bacteria problems.

Chinese consumers tend to prefer soft and mild cheese instead of more pungent varieties. For example, the consumption of mozzarella over the last 2 years has skyrocketed to more than 180% in China.

Moreover, it is also important to know that, unlike other countries where people refer to different sorts of cheese by their respective names (Roquefort, Gorgonzola, Emmental, Brie, Camembert, etc), most Chinese consumers are just using the word ‘cheese’ for everything.

Why is Cheese Getting More Popular in China?

When looking back at China’s food history, some people might be wondering how cheese brands were able to conquer the Chinese market. In fact, cheese has some attributes that turned into silver linings for Chinese consumers, and that’s what we are now going to see.

First of all, as the majority of foreign food products, Chinese consumers will think that they are safer to eat. On top of that, foreign products are appreciated because they convey a certain image of people who can afford to buy them and know how to cook and eat them. Even Chinese President Xi Jinping enjoyed a Swiss cheese fondue during his visit to Switzerland.

On the other hand, cheese can be found easily in supermarkets, as well as on e-commerce websites, which drastically benefits this sector.

Finally, cheese is part of very popular dishes in China, such as in fast-food restaurants, with pizzas, Mozza sticks, burgers, etc.

Cheese: a nutritious dairy product full of calcium

Viewed as nutritious food, cheese has gained popularity in China in a few years, with 32% of the Chinese population trying to increase its consumption of nutritious dairy products (according to Global Data). As cheese is a natural source of calcium and protein, Chinese people know that it can benefit them in terms of health, weight, and muscle growth, especially when it comes to children.

As we can see according to the cheese brand ‘Kiri”s website, the cheese brand is depicted as providing quality products of certified origin, as well as nutritional benefits. We can also see some healthy recipes using Kiri as part of their ingredients.

But cheese is not only for children. In 2018, the National Institute for Nutrition and Health’s report on the Chinese citizens’ need to consume more dairy products is a great way of getting nutrients: “Our country has been facing an increased rate of calcium deficiency”. Cheese is now seen as an essential product for children and elders.

Food globalization: a phenomenon in China

Because of globalization and the increasing number of tourists and expatriates, western culture and cuisine have spread all across China, especially in the biggest cities like Beijing, Shanghai, and Guangzhou. That’s why Chinese consumers are increasingly trying new culinary tastes, eating both local and foreign specialties, and ready to discover all kinds of cheese.

It is also important to note that cheese was greatly democratized thanks to sandwiches and other dishes (both fast-food and gourmet restaurants). Most Chinese consumers had their first approach with cheese in pizzas, cheesecakes, cupcakes, etc, or for children. Others have discovered cheese during their journey abroad when studying, traveling, and visiting their friends.

The evolution of the cheese industry in China

As mentioned earlier, China’s cheese consumption was almost inexistent a few decades ago. Only the upper class of society who was able to travel and go to gourmet restaurants was able to enjoy eating cheese after their main course. On the other hand, cheese brands were not convinced yet that China would be a promising market as cheese was not part of their daily habits. However, food globalization played a determinant role in the rise of the cheese industry, encouraging consumers to slowly increase their consumption.

Nowadays, some of the most popular recipes and everyday food contain cheese, whether original cheese or cheese derivatives.

For example, Chinese consumers are fond of cheesecakes, which can be found in almost all bakeries, but of beverages such as the famous bubble tea brand ‘Hey Tea’ known as 喜 茶, with one of its best-sellers ‘芝芝’, China’s most popular cheese tea, which has become popular thanks to its “cheese milk cap”. This was all possible because Chinese consumers love the combination of fruits and sugar with cheese and other dairy products.

Snacks with cheese are also popular in China, and Chinese citizens like to consume some snacks or want to buy them for their children. Cheese snacks like cheese lollipops are seen as healthier compared to chips for example, or other high-calorie snacks.

Another popular trend in China is vegan cheese, which is seen as healthier and low-calorie compared to other traditional cheeses. Indeed, the forecasted market value of vegan cheese worldwide is expected to reach $3,906 million in 2024, compared to its $2,060 million in 2015.

Therefore, it can be extremely interesting for cheese brands specializing in vegan cheese to expand their activities in China.

Exporters should also take into consideration that for most Chinese people, cheese is still considered a strange delicacy that is hard to implement in recipes. That’s why some Chinese chefs are regularly going abroad to learn how to use and cook cheese.

China: A Digitalized Market that Cheese Producers can’t ignore anymore

The Chinese people are always looking for new tastes and products to experience. For foreign companies, it is a challenge to educate consumers about their food products. That’s why adapting your product line to meet market demands by introducing tailored goods according to China’s taste preferences is key. Using the most popular sales channels is also crucial if you want to increase your ROI and visibility online.

How to sell cheese in China?

Choosing the best entry strategy is the most important key to consider when looking to export your cheese to China. It will depend on your budget, the audience targeted your goals, the timing you have, etc. Considering the fact that China is an extremely digitalized country, you can have more impact online than offline depending on your approach, that’s why comparing all the possibilities you have is crucial.

Selling cheese in Chinese & international supermarket chains

For a long time, selling cheese through supermarket chains in China was the best way for a brand to be visible and attract customers. Even though e-commerce platforms have gained popularity, supermarkets are still extremely useful for brands looking to export their cheese in China.

Selling cheese in supermarkets is a great way to display your products physically to a wide audience. In this way, they will be able to directly discover and look at your products. Supermarkets have the infrastructure you need for selling, as your products can be seen by regular consumers doing their shopping. If you want to sell your cheese in Chinese supermarkets, you can book an appointment with us!

Selling cheese via distributors in China

It is never easy to get your products into China as you will need certifications, but distributors can help make the process easier. By partnering with them and letting them handle all of the certifications for you, it will be possible to save money on shipping costs while also saving time since their team will already have done most of the work.

Therefore, it can be more advantageous to work with distributors in China, as they are well-connected and know exactly what the Chinese market is like and how to meet Chinese consumers’ standards when it comes to cheese.

E-commerce platforms: A good way to sell cheese in China

Tmall, Jd.com, Taobao, and Pinduoduo are among the top e-commerce platforms for cheese brands. In fact, China’s tech-savvy population is always connected online, and with the possibility to purchase online their grocery products and get them delivered directly to home, it is now essential for any brand to use e-commerce platforms.

How to Increase Sales in China and Attract Chinese Consumers?

Your products must be presented and viewed enough by Chinese consumers, especially on the internet. The Chinese are increasingly hunting for information online and this is an opportunity for brands to make themselves known and trusted. For this, it is important to ensure your visibility and reputation online.

For cheese producers, having a Chinese website will reassure Chinese consumers

It is useful to highlight the benefits that cheeses bring. Some brands play on the nutritional benefits of cheese for consumers’ health. In addition, the origin and story-telling around the brand and its products can also offer a considerable competitive advantage, by catching consumers’ interest.

For this, having your website in Chinese is important. As a communication platform but also as an image of the quality and authenticity of your brand. On the other hand, as Baidu is the leading search engine in China, it is important to properly reference your brand or product in related searches. Again, to ensure your visibility, your brand must be sufficiently “popular” and Chinese customers need to find it easily with keywords. Thus, word of mouth and brand reputation are important things.

Social media are determinant for your success in China

Having a WeChat, Weibo and other social media accounts is essential if you want to target and reach Chinese consumers. As the two most popular social media reuniting with more than a billion active users, it is crucial for brands to create an official account on these social media apps. If you want to promote and market your cheese in China, this will be your main platform of communication.

Little Red Book is the new favorite tool of marketers in China. It is a social network that encourages its users to share their daily lives, discoveries, and experiences with others. 780 million topics are created daily in a community of more than 200 million active users. LRB is also an e-commerce platform. Brands make a request to enter the platform and can then market their product.

Promotion is mainly done through posting and user sharing. Some quality articles have the chance to appear on the home page of LRB (in this case, it is the jackpot). This can significantly boost the exposure and therefore the sale of your products. However, this often requires putting money on the table.

Although LRB is mainly used in the field of fashion and cosmetics, let’s not forget that it is also an excellent sharing application where users are looking for new discoveries. Incorporated into recipes, during aperitifs with friends, and in French restaurants, there are many topics in which we can promote cheese.

Most Importantly: Adapting to Chinese Consumers

Bongrain SA is one of the market leaders today in the Chinese cheese market, with almost 20% market share. This company entered the Chinese market in 1997, by establishing its first plant in Tianjin.

However, Bongrain noticed that Chinese consumers didn’t appreciate a lot of the naturally salty taste of cheese (things are changing nowadays). Thus, the company has worked to better meet the needs of its Chinese clientele, changing some of its recipes.

Chinese consumers likely prefer creamy and soft cheeses. (This type of cheese represents 80% of retail sales in the market). Therefore as seen in this case, it is clear that Chinese consumers have different expectations and tastes when it comes to cheese. If you want to attract them and sell your cheese in China, you will have to adapt to their culinary habits and expectations.

Contact Us If You Want to Sell Your Cheese in China

With China being an extremely promising market and the world’s second-largest economy, it can be extremely rewarding for you to export your cheese to China. The cheese market is indeed still flourishing, as we have seen in this article, and has a lot of opportunities for brands that are willing to invest themselves in order to adapt to the Chinese market and to Chinese consumers.

Collaborating with an agency specialized in the Chinese market is the best way to achieve your goal and increase your Return On Investment. As all companies are different, the marketing and advertising strategy must be tailored according to their needs and within their financial means.

Proud of the success of the companies we have helped over the years, we know exactly the needs of each company and the strategies that must be tailored to them in order to get the best of the Chinese market.

For more information about our services and projects, do not hesitate to browse our website or contact one of our experts who will be happy to answer your questions and inquiries.