The “Booming” Cheese Market — Sugar Reduction Solutions

1. The Rise of Cheese: Significant Market Growth Potential

Cheese is produced through the concentration and fermentation of milk and is regarded as one of the most nutrient-dense dairy products, often referred to as “liquid gold.” It is currently entering a golden growth phase in China. According to data from Euromonitor, China’s cheese market reached a value of RMB 8.843 billion in 2021, representing a 22.72% increase compared with 2019, with a compound annual growth rate (CAGR) of over 20% between 2006 and 2020. It is projected that by 2024, the market size will grow by 8.18% year-on-year, reaching approximately RMB 10 billion.

Source: Euromonitor International; Debon Research Institute

Cheese products are generally classified into natural cheese and processed cheese. During the fermentation of natural cheese, partial protein degradation may generate bitter peptides, resulting in bitterness or sourness. Processed cheese, by contrast, is produced through further processing of natural cheese and is often positioned as a snack-style dairy product.

Driven by the rapid expansion of children’s cheese snacks (e.g., cheese sticks) over the past two years, the retailization of cheese has accelerated significantly. In 2020, the overall retail cheese category grew by 52%, while the cheese snack segment maintained a CAGR of around 25%, with growth in tier-3 and tier-4 cities exceeding 200%.

2. Breaking Through an Intensely Competitive Cheese Market

China’s snack cheese market is in a phase of rapid development, attracting both established dairy giants and emerging brands. Facing a market with vast potential, many brands are actively innovating by launching health-oriented, differentiated, diversified, and engaging products. Meanwhile, cheese consumption is expanding beyond children to include adult consumers, broadening the overall consumer base.

Among various innovation strategies, health positioning has become the primary driver. The health trend has profoundly influenced the food and beverage industry and is increasingly acting as an internal engine for innovation. Across the cheese category, brands are upgrading formulations through a combination of “addition and reduction” strategies:

· Addition, such as increasing cheese content or incorporating functional ingredients like prebiotics and lutein esters;

· Reduction, such as emphasizing “no added sugar” or “no sucrose added,” to meet growing consumer demand for healthier products.

3. Healthier Cheese Products: Approval of Sucralose Use

On May 5, 2022, China’s National Health Commission issued the Announcement on 36 New Food Ingredients Including Chlamydomonas reinhardtii (Announcement No. 2, 2022), approving the expanded use of sucralose. Sucralose is now permitted for use as a sweetener in processed cheese (food category 01.06.04), with a maximum usage level of 0.2 g/kg.

Source: National Health Commission of the PRC

【Advantages of L&P Foods’ Cheese Sugar-Reduction Solutions】

· Excellent Taste
Sucralose delivers a clean sweetness very close to that of sucrose. Partial or complete replacement of sucrose in cheese products allows manufacturers to achieve a sucrose-like taste while significantly reducing total sugar content.

· Calorie Reduction
With zero calories, sucralose helps control caloric intake and modulate glycemic response when used as a sugar substitute.

· Cost Efficiency
Compared with sucrose, sucralose can help reduce production costs, enhance product cost-performance, and support improved market competitiveness.

【Advantages of L&P Foods’ Sucralose Ingredients】

· Superior Quality
Stable quality, clean sweetness without off-flavors, and reliable large-scale supply capacity.

· Comprehensive Quality Systems
Certified under ISO 9001, ISO 22000, ISO 14001, ISO 45001, BRC, and FSSC 22000.

· Multiple Specifications
Available in granular, powder, and ultra-fine grades, enabling flexible application across different production processes.

About L&P Food Ingredient Co., Ltd

L&P Food Ingredient Co., Ltd (L&P Foods) is a professional manufacturer specializing in food additives and functional food ingredients. The company holds comprehensive production qualifications, including valid manufacturing licenses and a full range of internationally recognized management system certifications, including Quality Management (ISO 9001), Food Safety Management (ISO 22000), Religious Certifications (KOSHER and HALAL), Occupational Health and Safety (ISO 45001), Environmental Management (ISO 14001), as well as the Global Standard for Food Safety (BRC). With consistent and reliable product quality, a well-established after-sales service system, and the capability to provide customized solutions tailored to customer needs, L&P Foods has become a trusted and preferred supplier for downstream manufacturers.