The most important category within cheese, processed cheese posted continued strong retail growth in 2018, thanks to the diverse formats and acceptable flavours and textures. Flavour is the most important factor why processed cheese is winning over unprocessed cheese.
Amidst increasing awareness of children’s diets, cheese snacks have been well-received by parents. Amongst all the cheese categories, other processed cheese is most often used for children’s cheese, due to the well-accepted light flavour.
Consumption patterns are changing from eating at home to eating out, with consumer foodservice booming in 2018. As a result, more manufacturers expanded their businesses to foodservice.
As the first player to see the potential of children’s cheese, and following the launch of Milkana children’s cheese sticks, Bongrain (Tianjin) Foods has grown to become the main player in this segment and in overall cheese, seeing rapid expansion in the review period. However, the competition is increasing, as more players entered this segment in 2017, such as Beijing San Yuan Foods.
The overall performance of Fonterra Commercial Trading (Shanghai) is outstanding, particularly in foodservice. Although the company’s retail business does not heavily invest in campaigns or marketing, its rapid expansion in foodservice plays a strong role in retail by strengthening its brand reputation.
A foodservice provider at the beginning, Milkland (Tianjin) Foods Technology increasingly leaned towards retail in the review period. Although its retail share is still low, it has high potential.
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This industry report originates from Passport, our Packaged Food market research database.