China is going through a pizza renaissance.
Because Chinese consumers see pizza as an iconic part of the American diet, demand for the food is expected to continue surging, writes David Stringer at Bloomberg.
China’s biggest cheese supplier, Fonterra, predicts demand for mozzarella cheese will surge 20% in the next two years because of the trend, according to Bloomberg.
In addition to increasing their output from their home base of New Zealand, Fonterra is also planning on doubling locations in China. Fonterra supplies cheese to Domino’s Pizza.
Pizza Hut parent company Yum Brands estimates that China’s consuming class will double to 600 million people by 2020, meaning that demand for fast food and pizza will continue to grow.
“The growth of fast food and processed food throughout Asia is leading to higher demand for processed cheese and mozzarella,” Mark Topy, an analyst at Canaccord Genuity Group, told Bloomberg. “There’s going to be some opportunities in that space for companies that can provide a long term supply of mozzarella.”
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