"Dairy Packaging in China" is now available at Fast Market Research

Cheese continues to grow sales from a relatively small sales base, with more consumers becoming aware of these products. The growing popularity of western food is encouraging consumers to try dishes containing cheese at home, contributing to sales growth for cheese. Cheese targeting children from Bongrain (Tianjin) Foods and Bel China also continue to be popular among Chinese consumers due to a healthy and nutritional positioning, with their high calcium content believed to help children's growth. Being a premium and nutritious dairy product, cheese is increasingly popular among foreigners in China and among educated mid- to high-income Chinese consumers and children.

Competitive Landscape

In 2013, Bongrain (Tianjin) Foods is expected to remain the leading player in cheese with 13% retail value share. This dairy product manufacturer continues to invest in familiarising consumers with cheese via marketing and widening distribution. The company's flagship brand Milkana offers a wide variety of cheese including children's cheese snacks and breakfast spreadable cheese, with these being especially popular among Chinese consumers looking for high quality and safe dairy products.

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Industry Prospects

As cheese is gradually more widely accepted by consumers in China, it is expected that sales will become more developed over the forecast period with higher household penetration. Manufacturers are expected to introduce more diversified products catering for consumers' differing demands. Products with a health and wellness positioning, such as cheese with added calcium or vitamins or reduced fat, are expected to prove particularly successful. With accelerated urbanisation, consumers from smaller cities and rural areas are expected to gain more access to western cuisine, which will contribute to the popularity of cheese in China during the forecast period.

Drinking Milk Products

Current value growth for drinking milk products slowed in 2012 and is expected to continue to slow in 2013 due to slowing economic growth in China and quality problems that negatively influenced consumer confidence in these products. In early-2012, cancer-causing ingredient Aflatoxin M1 was found in products from Inner Mongolia Mengniu Dairy Industry. As a result of ongoing negative news reports this company's value share declined in 2012 and 2013, dropping to second place from its rank of first in 2010. Premium brands such as Inner Mongolia Mengniu Dairy Industry's Deluxe and U Best from Bright are expected to see a dynamic performance in 2013. However, these premium products continue to record a lower value share compared to mass products.

Competitive Landscape

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