Changing consumer tastes to shape new products

Dutch dairy producer Royal FrieslandCampina, one of the world's largest dairy companies, said it has been working to understand Chinese consumers' tastes, and is hoping to introduce some healthier processed cheese products to China this year.

Currently, FrieslandCampina sells more than 20 types of cheese in China, but the business scale is relatively small, and it only sells at a few supermarkets and food outlets, the company said.

"We hope to grow our cheese business in China. We have an ambition to increase our market share, and we would like to target all age groups," said Rahul Colaco, president of FrieslandCampina China.

"Now there are about 150 million Chinese consumers traveling abroad annually. Many of them try cheese and learn about it abroad, and then they bring back products and ways of consuming it," Colaco said.

"This will help with the growth of the market for cheese in China as more Chinese travel abroad, especially the younger generation," he said.

Colaco added that the company fully recognizes the need to educate Chinese consumers about eating more cheese, and said it is looking at developing and bringing in some cheeses specifically processed for Chinese consumers.

"More people are willing to pay for premium, ultra-premium and innovative dairy products. Increasingly, they are looking for healthier options, so we would like to offer different ranges of low-fat and low-salt cheese," he said.

The Dutch dairy maker said it is strong in the production of natural cheese, something that is good for consumers as it is free of preservatives and artificial coloring and flavoring.

Current Chinese regulations do not allow domestic retailers to cut imported large packages of cheese into sliced or shredded cheese for food safety reasons, and the company is hoping for a revision of regulations that may allow imports of more varieties of cheese.

Neil Wang, president of consultancy Frost& Sullivan in China, said the cheese market in China is still in its infancy, and there is significant growth potential in the future. Consumption levels of dairy products are closely related to the per capita income of residents and industry development, based on experiences in developed economies.

"Usually, dairy product consumption starts with liquid milk and then progresses to cheese and butter," Wang said. "China is still at the liquid milk consumption stage. With continuous increases in incomes and acceptance of cheese by consumers, dairy consumption in the country is set to upgrade to dry dairy products."

Cheese concentrates all the nutritional ingredients of milk and is rich in protein and vitamins. As a result, its popularity as a food for babies and children is expected to grow, Wang added.

"Besides, women aged between 20 and 35 may prefer low-fat cheese while products with extra calcium will be suitable for elderly people. In the next few years, some new cheese products tailored to the demands of different consumer groups may have bigger growth opportunities," he said.

Meanwhile, he noted that the main challenge facing the cheese market in China is that most products are fairly expensive, retailing at 20 yuan ($2.98) per 200 grams on average. Prices of imported cheeses or healthy products are even higher, making it hard for many Chinese consumers to buy cheese on a regular basis.

(China Daily 04/18/2019 page9)