Cheese and curd market in China

Earlier Report Observations

From 2018 to 2020, the cheese and curd market in China grew steadily, with volume increasing from 481 thousand tons to 541 thousand tons. This expansion was primarily fueled by the strategic entry of large domestic dairy companies such as Yili and Mengniu into the cheese segment, leveraging their production expertise and cost advantages. The COVID-19 outbreak in 2019 temporarily disrupted the industry, but demand quickly recovered as consumers began seeking diversified dairy products, with cheese emerging as a new growth point. In 2020, Mengniu's acquisition of the cheese brand Miaoke Landuo for CNY 30 billion consolidated market leadership, enhancing scale, product range, and R&D capabilities, further boosting production capacity.

Between 2021 and 2022, market growth momentum adjusted. The volume reached 608 thousand tons in 2021 but stabilized at around 597 thousand tons in 2022. During this period, the number of new cheese enterprises declined sharply from a peak of over 200 to fewer than 100, indicating an industry consolidation phase. Despite softer demand conditions, domestic brands continued to expand their presence. Government policy support through the "14th Five-Year Plan for Dairy Industry Competitiveness Improvement" emphasized developing value-added products like cheese, while new regulations focused on product quality and safety.

In 2023, the market volume rebounded to 643 thousand tons, signaling a recovery. The industry shifted focus from child-centric products like cheese sticks to broader age groups, driving product diversification and differentiation. Continuous integration of the dairy supply chain and innovations such as spreadable cheese, low-fat, lactose-free, and plant-based varieties gained traction. State directives called for optimizing the ratio between liquid milk and dry dairy production, specifically advocating for increased output of high-value cheese, supporting long-term market development.

Production cheese and curd in China

In kind, 2017-2020, K t

From 2017 to 2020, China held the 24th position globally in cheese and curd production.

Top producers of cheese and curd, 2017-2020

World map of production of cheese and curd, 2017-2020

China's cheese and curd production grew for the third year in a row. In 2020, the country produced 411.8 thousand tonnes, marking a 6.4% increase from 2019. Over the 2017-2020 period, production rose by 11.6%, with a compound annual growth rate of 3.7%.

Annual dynamics of production in China in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the value of cheese and curd output in China was 2 191 million US dollars, a sharp 25.5% drop from the previous year. Between 2017 and 2020, production value decreased by 24.8%, translating to an annualized decline of 9.1%. The peak value occurred in 2019 at 2 940 million US dollars, with the largest increase that year at 22.6%.

Annual dynamics of production in China in value, 2017-2020, M $ US

Exports cheese and curd from China

Exports in kind, K t

Market performance showed notable fluctuations during this period. Exports hit a low in 2019 at 0.1 thousand tonnes and peaked in 2020 at 0.4 thousand tonnes, a 3.1-fold difference. In 2020, cheese and curd volumes leaving China were 206.1% higher year-over-year. The largest decline was recorded in 2019 at 38.2%.

Annual dynamics of product's exports from China in kind, 2017-2020, K t

From 2017 to 2020, Hong Kong was the top buyer of cheese and curd from China, accounting for 74.7% of total exports in volume, while the remainder was distributed among various other countries.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from China in kind, 2017-2020

Exports in value, M $ US

Market performance exhibited significant fluctuations during this period. Exports reached a minimum in 2019 at 0.9 million US dollars and a maximum in 2020 at 1.9 million US dollars, a 2.1-fold variation. In 2020, China's cheese and curd export value was 114.3% greater than in 2019. The largest decline occurred in 2019 at 27.1%.

Annual dynamics of product's exports from China in value, 2017-2020, M $ US

Over 2017-2020, Hong Kong dominated as the primary destination for cheese and curd exports from China in value terms, representing 74.7% of total flows, with the rest spread across several smaller markets.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from China in value, 2017-2020

Imports cheese and curd to China

Imports in kind, K t

China's cheese and curd imports grew for the third consecutive year. In 2020, imports reached 129.2 thousand tonnes, a strong 12.5% gain from the previous year. From 2017 to 2020, imports increased by 19.7%, with a compound annual growth rate of 6.2%.

Annual dynamics of product's imports to China in kind, 2017-2020, K t

Throughout 2017-2020, New Zealand (54.2% of imports in volume), Australia (16.5%), and the United States (8.6%) were the key partners for cheese and curd imports to China, together making up 79.3% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to China in kind, 2017-2020

Imports in value, M $ US

China's cheese and curd imports in value terms rose for the third year in a row. In 2020, imports totaled 590.3 million US dollars, a substantial 13.1% increase over the past year. Between 2017 and 2020, imports grew by 18.7%, equating to an annualized rate of 5.9%.

Annual dynamics of product's imports to China in value, 2017-2020, M $ US

From 2017 to 2020, New Zealand (51.3% of imports in value), Australia (15.0%), and the United States (8.9%) led as the main suppliers of cheese and curd to China, with their combined share reaching 75.2% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to China in value, 2017-2020