Confectionery sales in China are forecast to rise by more than 7% this year with demand, even for high-end products, staying robust despite slowing economic growth.
Go deeper with GlobalData
Sales will reach US$5.68bn in 2009, up from $5.3bn a year earlier, according to research from analysts IBISWorld.
Consumption of confectionery has been growing as disposable income in China has risen, with products becoming increasingly popular for snacks and to mark special occasions.
The growth in sales has slowed; sales jumped by over 30% in 2007. However, the report – Confectionery and Chocolate Manufacturing in China – forecast further growth, with sales predicted to reach $8.19bn in 2014.
“Although total demand for confectionery and chocolate products in China is substantial given the large population, the per capita consumption level is still quite low at only 0.7 kilograms per year, about 10% of the level in developed countries,” the report said. “The market has strong growth potential in the future.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataRising demand for higher-quality products and growing demaand from rural consumers are expected to drive growth in the sector, which IBISWorld added, would also see an increase in “industry concentration”.
IBISWorld noted that Mars was the largest confectioner by market share in China in 2008, thanks to its merger with Wrigley.
According to IBISWorld stats, Wrigley’s Chinese unit enjoyed 11% of the country’s confectionery market, with Mars’s Effem Foods business in second place with 7%.
