Foodservice Drives Asian Cheese Demand
US - For US cheese suppliers, reports of soaring restaurant profits in China or same-store sales growth in South Korea or new unit construction in Southeast Asia spell opportunity—and a sizable one at that, writes Angélique Hollister Vice president, cheese and consumer products at the US Dairy Export Council.
21 May 2012
3 minute read
Three new cheese foodservice and bakery
research studies produced by the US Dairy
Export Council (USDEC) examined the
foodservice and bakery markets in Korea,
China and a select group of Association of
Southeast Asian Nations (ASEAN) countries,
specifically, Indonesia, Malaysia, the
Philippines, Singapore, Thailand and
Vietnam—also known as the “ASEAN 6.”
Three positive cheese growth messages
emerged:
- Cheese consumption in each market is booming. The report forecasts 10 per cent annual gains for the ASEAN 6 over the next five years, creating the need for an additional 110 million lbs. of cheese. China’s cheese market is expanding about 20 per cent per year, which should push total volume to more than 125 million lbs. by 2015. South Korea’s market is expanding more sporadically but grew 30 per cent to 194 million lbs. from 2006-2011 and further expansion is ahead.
- The foodservice and bakery channels are driving the gains, accounting for 80-90 per cent of cheese use, depending on the country.
- Imports account for more than 70 per cent of Korean cheese consumption, around 85 per cent of ASEAN 6 consumption and a whopping 98 pe rcent of Chinese consumption. And that situation is not expected to change soon due to scant cheesemaking capacity and no plans to invest on the horizon.
ASEAN 6 foodservice operators
questioned in one of the reports forecast 10-
25 per cent cheese usage per year for the next
three to five years.
US suppliers have earned recognition for
efforts to meet buyer specs, particularly in
Korea, and US cheeses boast a reputation
for quality. However, US mozzarella is still
viewed by many consumers as too white, and
salt content is often an issue. Despite
progress a perception lingers among some
that US product is behind that of Oceania
and Europe.
There still exists a gap in basic cheese
knowledge in all three regions that limits the
uptake to the most popular varieties—
mozzarella, cream cheese and processed
cheese.
Korea, the most advanced in terms of cheese
use, is an example of what cheese education
can accomplish. The country imported no
gouda in 2007. In 2011, gouda was gaining
on cream cheese as the third largest seller by
variety after pizza chains began incorporating
it as a topping.
The United States is on the right track. US
sales have been rising to all three regions. In
2011, US cheese sales to Southeast Asia,
Korea and China/Hong Kong grew 46, 85 and
117 per cent, respectively, to a combined 122
million lbs. Targeting foodservice
opportunities could drive those gains
significantly in the years ahead and USDEC’s
marketing programs will continue to lay the
groundwork to build image and increase the
overall sector’s recognition of the United
States as a quality and committed cheese
supplier.
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