China’s Sweet Tooth: Opportunity Abounds for Candy and Chocolate Manufacturers

As China changes rapidly, so do its tastes. As the nation evolves into a consumer society, new candy and chocolate products are increasingly popping up on shelves. The Confectionery and Chocolate Manufacturing industry in China will grow by an average annualized rate of 22.1% over the next five years, according to IBISWorld, America’s largest publisher of industry research. Foreign companies are expected to make up an ever increasing share of the Chinese industry's revenue.

It’s no surprise that as China’s large population is increasingly exposed to candies, chocolates and other confectioneries, the market for these products steadily grows. Furthermore, greater demand for high-quality products; growing demand from rural consumers; intensified competition in brand and price; and improvements in manufacturing technologies all factor in the industry’s booming performance, reports IBISWorld.

Rising average annual incomes, increased exposure to Western and international cuisines and a greater array of candy goods in supermarkets also work together to increase sales of the industry's products in China. Expenditure on confectionery and chocolate products as a share of total expenditure on foods has been steadily growing over the past several years.

According to IBISWorld, industry revenue grew rapidly during the five years through 2011, with average annual growth of 25.5% to $12.12 billion. Foreign enterprises are expected to increasingly take interest in China’s growing confectionery market, as high-end chocolates and candies are still relatively new to store shelves here.

With the improving economy and increasing domestic demand, total domestic confectionery output is expected to rise by 18.5% to 2.13 million tons in 2011. The industry is still in its growth stage due to relatively low chocolate and confectionery consumption per capita in China, and significant future demand exists in rural areas.

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Source and Photo: Herald Sun