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The Hit Cheese Market-Sugar Reduction Solution

The Hit Cheese Market-Sugar Reduction Solution

Jul 29 , 2022

1Cheese’s market has a huge incremental space:

Cheese is made from milk after concentration and fermentation, which is one

of the dairy products with the highest nutritional content. It has been known as" milk gold" and is ushering in thegolden periodof development in China. According to data from Euromonitor, the market size of China's cheese industry will reach 8. 843 billion yuan in 2021with a year-on- year growth of 22. 72% compared with 2019and a compound annual growth rate of more than 20% from 2006 to 2020. It is predicted that the size of China' s cheese market will increase by 8. 18% year-on-year to about 10 billion yuan in 2024.

Data SourceEuromonitorTopsperity Securities

Cheese is divided into natural cheese and reprocessed cheese. In the process of natural cheese fermentation, part of protein decomposition will produce bitter peptide, which may cause bitter or sour taste. Reprocessed cheese is the product of reprocessing on natural cheese, which is equivalent to snack products of natural cheese. In the past two years, driven by the children' s cheese bar categorythe trend of cheese retailing is increasingly obvious. In 2020the overall growth rate of

retail cheese category is as high as 52%and the annual compound growth rate of cheese snack market is maintained at about 25%especially in the third-or fourth-tier marketthe growth rate reaches more than 200%.


2. How to break from the "rat race" cheese market

China' s snack cheese market is in a period of rapid developmentwith traditional giants, new brands and all kinds of players stepping on the gas pedal.Facing the potential cheese marketmany brands have the courage to innovate and launch healthy, differentiated, diversified and interesting products. The cheese consumer group has also expanded from children to adultsreaching more consumer groups.

Among them, "To Be Healthy" is the main way of brand innovation. The trend of "To Be Healthy" has a profound impact on the food and beverage industry, and gradually transformed into an internal powerthus becoming the driving force to guide the industry innovation. Looking at the healthy trend of the whole cheese market in recent years, brands are upgrading the formulation of their products through the combination of "addition and subtraction". On one hand, the "addition" measures include adding more nutrients, such as increasing the cheese content, adding prebiotics and lutein esters;On the other hand, the "subtraction" measure is that "sucrose free" is adopted to meet the increasing health needs of consumers.


3. "To Be Healthy" cheese products Sucralose is approved for use

On May 5, 2022, the National Health Commission of the People’s Republic of China issued the Announcement on 36 "Three New Foods(referring to new food ingredientsnew varieties of food additives and new varieties of food related  products)" such as Chlamydomonasreinhardtii (No. 2 of 2022), approving the use of Sucralose in processed cheesethe maximum usage is 0.2g/kg.

S/N

Food Additive Name

Function

Food

Classification Number

Food Name

Maximum Usage (g/kg)

Remark

1

Glutamine Transaminase

Stabilizer and Coagulant

01.02.02

Flavored Fermented Milk

0.3

-

01.06.01

Unripened Cheese

2

Magnesium Oxide

Flavor Enhancer

06.07

Instant Rice Noodle Products

Proper use according to production needs

-

06.08

Frozen Rice Noodle Products

12.10

Compound Condiment

3

Sucralose

Sweetener

01.06.04

Processed Cheese

0.2

-

Photo Source: National Health Commission of the People’s Republic of China

[Advantages of L&P Cheese Sugar-reduced Solutions]

Good Taste: Sucralose has a pure taste close to sucrose,partially or completely replace sucrose used in cheese products can get close to sucrose taste while reduce the total sugar content of cheese products;

Calorie Reduction: Sucralose is zero caloriereplacing sucrose can achieve the function of controlling calorie and adjusting blood sugar response;

Cost-saving: compared with the use of sucrose, Sucralose can reduce the production cost, improve the cost performance of products, which is conducive to improve the market share of products.

[Advantages of L&P Sucralose ingredient]

Good Quality: Sucralose is with stable qualitypure sweetness without peculiar smell,can realize a large number of continuous and stable supply;

Comprehensive Quality Control System: IS09001, IS022000, IS014001, IS045001,BRC,FSSC22000 certifications are got;

Various Specifications: With particle, powder, ultra-micro and other product specifications,convenient production and application.


As a wholly-owned subsidiary of Guangye L&P Food Ingredient Co., Ltd, L&P Food Ingredient Co., Ltd which is mainly engaged in R&D, production and sales of food additives and food, was established in Year 2011 and is located at Wengcheng Development Zone of Wengyuan Town, Shaoguan City, Guangdong Province. Its current registered capital is 136 million yuan,total assets is 365 million yuan, and with a workforce of 250 people. As the achievement industrialization base of Guangye L&P, L&P Food Ingredient Co., Ltd ranks at the forefront of the national counterparts with a strong scientific R&D capability and high-end technical standard, has become the domestic bellwether in the research and development of sweeteners, antioxidants and functional food ingredients, moreover it is committed to become a nutrition, health and food safety solutions provider.


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