A deep dive into the confectionery market in China [2025]

The confectionery market in China is one of the most dynamic and evolving segments of the country’s food industry. Valued at approximately US$84.05 billion in 2024 by Statista, it is projected to grow to US$109.53 billion by 2029, reflecting increasing consumer demand for both traditional and innovative confectionery products. While China trails behind Western nations in per capita confectionery consumption, the market’s vast size and growth potential make it a lucrative opportunity for local and international brands alike.

The sector encompasses chocolate confectionery, sugar-based candies, ice creams, and preserved pastry goods and cakes, catering to a wide array of preferences. Recent years have seen a shift towards health-conscious and premium products, influenced by rising disposable incomes and growing urbanization. E-commerce platforms have further accelerated this growth by expanding accessibility, particularly in urban areas.

As China’s consumers continue to embrace diverse flavors and textures, the confectionery market is poised for sustained growth, driven by innovation, health-conscious trends, and digital transformation. This guide delves deeper into the sector, offering insights for businesses aiming to capitalize on its potential.

Overview of the Confectionery Market in China

The confectionery market in China is a vibrant sector, valued at approximately US$84.05 billion in 2024 by Statista and projected to grow to US$109.53 billion by 2029. It comprises four primary subcategories: chocolate confectionery, sugar confectionery, preserved pastry goods and cakes, and ice cream. Among these, sugar confectionery dominates in volume, driven by the popularity of chewy candies, while chocolate confectionery is projected to grow the fastest, fueled by rising demand for premium and health-oriented products.

Chocolate confectionery, though historically less consumed than in Western markets, has seen consistent growth. Products like dark chocolate and functional chocolate are gaining traction as health-conscious consumers seek lower-sugar options. Sugar confectionery, led by brands such as Alpenliebe and Uha, continues to cater to diverse tastes with innovative flavors and packaging. Meanwhile, ice cream and pastry goods maintain steady demand, supported by seasonal and cultural consumption patterns.

The retail landscape is dominated by hypermarkets, supermarkets, and e-commerce platforms such as Tmall and JD.com, which have transformed accessibility for urban consumers. Regional insights reveal that cities like Beijing, Shanghai, and Guangzhou account for the bulk of sales, while rural areas are emerging as growth hotspots due to increasing disposable incomes and demand for affordable products.

Pricing dynamics remain influenced by raw material costs, with fluctuations in sugar and cocoa prices posing challenges. Notably, inflation for sugar confectionery stood at -2.37% in Q3 2024, reflecting competitive pricing strategies in the sector. Retailers like QX-era and Epermarket are leveraging low prices to attract cost-conscious consumers.

Key Drivers in the Confectionery Market in China

Rising Disposable Incomes

China’s growing middle class and rising disposable incomes are key drivers of confectionery demand. Consumers, especially in urban areas, are increasingly willing to spend on premium products, such as artisanal chocolates and imported candies. This trend is particularly evident in cities like Shanghai and Beijing, where demand for high-quality confectionery is booming. The shift toward indulgence is complemented by the Chinese culture of gift-giving, further propelling sales during festivals and special occasions.

Health-Conscious Consumer Trends

The increasing awareness of health and wellness among Chinese consumers is transforming the confectionery landscape. Products with low-sugar, sugar-free, and functional ingredients are gaining popularity, appealing to consumers seeking guilt-free indulgence. For instance, functional chocolates focusing on fitness and immunity are carving a niche in the market. This trend is reinforced by government campaigns to reduce sugar consumption, further driving demand for healthier alternatives.

E-Commerce Dominance

China’s advanced e-commerce platforms, such as Tmall and JD.com, are revolutionizing confectionery retail. These platforms provide a vast array of products, from traditional sweets to premium imports, and offer the convenience of fast delivery. E-commerce has also expanded market access to rural areas, where demand for affordable confectionery is rising. Moreover, digital platforms enable personalized marketing, further boosting sales.

Cultural Preferences and Traditions

Cultural events and gifting traditions remain pivotal drivers for confectionery sales in China. Festivals like Chinese New Year and Qixi Festival see a spike in demand for candies and chocolates, viewed as symbols of sweetness and prosperity. Premium packaging and innovative flavors, such as those inspired by traditional Chinese ingredients, also appeal to local tastes, solidifying confectionery’s role in cultural practices.

Innovation in Flavors and Textures

Chinese consumers are drawn to unique, multisensory experiences, driving brands to innovate with bold flavors, exotic textures, and vibrant packaging. For example, products like Chupa Chups Sour Belts and 4D gummy candies have captured consumer interest with their playful and shareable designs. Innovation extends to functional and plant-based confectionery, tapping into both indulgence and health-conscious segments.

Key Consumer Trends for the Confectionery Market in China

Growing Desire for Nostalgia-Inspired Products

Chinese consumers are increasingly drawn to confectionery that evokes nostalgia. Classic brands like White Rabbit have successfully leveraged this trend by reintroducing traditional products with a modern twist. Combining familiar flavors with innovative formats, such as milk tea collaborations or limited-edition packaging, appeals to both older generations seeking comfort and younger consumers discovering these cultural icons. Nostalgia-driven purchases are especially popular during festivals, where traditional sweets resonate strongly.

Preference for Customization and Personalization

Personalization is becoming a significant trend in the confectionery market. Consumers value the ability to customize flavors, packaging, and even shapes of candies and chocolates. Online platforms cater to this demand, offering customized gift sets tailored to specific occasions. Personalization enhances the emotional connection with the product and is particularly effective for younger consumers who seek unique, shareable experiences.

Importance of Ethical and Sustainable Choices

Sustainability is gaining traction among Chinese consumers, particularly the environmentally conscious younger demographic. Vegan chocolates and plant-based candies are becoming more popular as ethical consumption trends rise. Consumers are also paying closer attention to packaging, favoring brands that offer eco-friendly materials or reduced plastic use. Ethical practices, such as fair-trade certifications for cocoa, also influence purchasing decisions.

Role of Social and Digital Trends

Social media continues to shape confectionery consumption in China. Products that are visually appealing or offer a "wow" factor, such as rainbow-colored candies or interactive snacks, thrive on platforms like Xiaohongshu and Douyin (TikTok). This trend has made shareability a key purchasing influence, with consumers opting for confectionery that they can showcase online. Limited-edition launches or influencer collaborations further fuel this trend by creating urgency and exclusivity.

Demand for Convenience-Oriented Products

Modern lifestyles in urban China are driving demand for on-the-go and snackable confectionery. Miniature versions of popular candies or resealable packaging options are particularly appealing to busy professionals and students. These products align with the need for portability and portion control, offering quick indulgence without guilt. Additionally, convenience stores and vending machines remain critical retail channels for this trend.

Key Challenges Facing the Confectionery Market in China

Rising Raw Material Costs

The cost of key raw materials like sugar, cocoa, and dairy products fluctuates significantly, creating challenges for confectionery manufacturers. The post-pandemic economic climate and global supply chain disruptions have exacerbated these price fluctuations, squeezing profit margins for both domestic and international brands. Smaller companies are particularly vulnerable, as they lack the resources to absorb these costs or pass them on to price-sensitive consumers.

Growing Competition

The confectionery market in China is highly fragmented, with domestic and international players vying for market share. Foreign brands dominate the premium segment, while local brands compete aggressively on price in the mid-to-low-end market. This fierce competition forces brands to continuously innovate, invest in marketing, and diversify product lines, which can strain resources and impact profitability.

Health and Regulatory Pressures

China's government is actively promoting reduced sugar consumption as part of broader health initiatives. These campaigns, coupled with growing consumer awareness about sugar-related health risks, pose challenges for confectionery brands heavily reliant on traditional sweet products. Adapting to these trends requires substantial investment in reformulating products and introducing health-oriented alternatives, which can be time-consuming and costly.

Seasonal Dependency

The confectionery market in China experiences significant seasonal spikes, particularly during festivals like Chinese New Year. While these periods drive high sales, brands face challenges in managing production, distribution, and inventory to meet demand without overproducing. Seasonal dependency also makes it difficult to maintain steady sales throughout the year, leaving brands vulnerable to fluctuations in consumer spending.

Urban-Rural Divide

While urban centers like Beijing and Shanghai dominate confectionery consumption, rural areas present a largely untapped market. However, reaching these regions involves overcoming logistical and cost-related barriers, including underdeveloped infrastructure and limited access to modern retail formats. Additionally, consumer preferences in rural areas often differ, requiring brands to adapt their products and pricing strategies to fit local needs.

Shifting Demographics

China’s declining marriage and birth rates are reshaping confectionery consumption patterns. The number of marriages dropped from 9.9 per 1,000 people in 2013 to 4.8 in 2022, reducing demand for traditional celebratory confectionery items like wedding candies. Similarly, fewer births mean lower consumption of confectionery for children, a traditionally significant demographic. As the population ages, the market must pivot toward products that appeal to older consumers, such as low-sugar and functional sweets tailored to their preferences.

Top Confectionery Segments and Leading Brands

1. Sugar Confectionery: The Largest Segment

Sugar confectionery leads the market in volume, driven by its widespread appeal and affordability. Products like chewy candies, hard sweets, and fruit-flavored jellies dominate this category, catering to both adults and children. Innovations such as functional candies with added vitamins or herbal ingredients are also boosting growth. Leading brands in this segment include Alpenliebe, Uha, Haitai, Trolli, and Golden Throat, which excel in offering diverse flavors and formats to meet consumer preferences.

2. Chocolate Confectionery: Growing Rapidly

Chocolate confectionery is the fastest-growing segment, buoyed by increasing demand for premium and health-conscious options. Products like dark chocolate, functional chocolate, and gourmet variants are gaining traction, especially in urban areas. Although per capita consumption is low compared to Western markets, rising incomes and exposure to international brands are expanding this category. Key players include Ferrero Rocher, Dove (Mars), Lindt, Nestlé, and Leconte, which dominate the premium and everyday chocolate segments.

3. Ice Cream: A Seasonal Favorite

Ice cream is a popular segment, especially during warmer months and festive occasions. Both traditional flavors and innovative offerings, such as plant-based or low-sugar ice creams, are fueling demand. The segment benefits from its positioning as a versatile dessert option that appeals to all age groups. Leading brands include Haagen-Dazs, Walls (Unilever), Nestlé, Mengniu, and Yili, which are capitalizing on growing interest in premium and healthier ice cream products.

4. Preserved Pastry Goods and Cakes: A Cultural Staple

This segment includes traditional treats like mooncakes and modern pastries. Mooncakes, especially during the Mid-Autumn Festival, drive a significant portion of sales in this category. The year-round demand for cakes as gifts and celebratory items also keeps the segment steady. Brands like Holiland, Ganso, Maxim’s, and 85°C dominate this market with offerings that blend traditional flavors and innovative packaging to attract diverse consumer groups.

Top 10 Companies in the Confectionery Market in China

The confectionery market in China is dominated by both international and domestic companies. Here are 10 of the largest players.

1. Mars, Incorporated: A global leader in the confectionery industry, Mars offers popular brands like M&M's and Snickers, which have a significant presence in the Chinese market.
2. Nestlé SA: This Swiss multinational owns Hsu Fu Chi, a well-known Chinese confectionery brand, and offers a variety of products tailored to local tastes.
3. Ferrero Group: Known for brands like Ferrero Rocher and Kinder, Ferrero has established a strong foothold in China's premium chocolate segment.
4. Mondelez International, Inc.: With brands such as Oreo and Toblerone, Mondelez has a significant share in China's biscuit and chocolate markets.
5. Perfetti Van Melle: This Italian company, known for brands like Alpenliebe and Chupa Chups, has been operating in China since 1994 and continues to expand its product offerings.
6. Yıldız Holding AS: A Turkish conglomerate owning brands like Godiva and Ülker, Yıldız has a presence in China's premium chocolate and biscuit markets.
7. Lotte Confectionery Co. Ltd: A South Korean company offering a range of products, including chocolates, biscuits, and gums, Lotte has a growing presence in China.
8. Hershey's: An American company known for its chocolates, candies, and sweet snacks, Hershey's has been expanding its presence in the Chinese market.
9. Haribo GmbH & Co. K.G.: A German confectionery company famous for its gummy candies, Haribo has been increasing its market share in China.
10. Meiji Co. Ltd: A Japanese company offering a variety of confectionery products, including chocolates and biscuits, Meiji has a notable presence in China.

Opportunities in the Confectionery Market in China

The confectionery market in China presents numerous growth opportunities for brands willing to innovate and adapt to changing consumer preferences. Below are a few key opportunities identified within this sector:

• Festivals and Special Occasions
  Chinese festivals like Chinese New Year, Mid-Autumn Festival, and Qixi Festival offer significant opportunities for confectionery brands. Products designed as gifts with premium packaging and limited-edition flavors aligned with these celebrations are highly sought after. This is especially true for items like chocolates and mooncakes, which are integral to these occasions.
• Health-Oriented Innovations
  There is growing demand for low-sugar, sugar-free, and functional confectionery, including chocolates infused with vitamins or herbal extracts. This aligns with the health-conscious consumer base in urban areas, creating opportunities for brands to introduce guilt-free indulgences.
• Regional Expansion into Rural Areas
  While urban centers dominate sales, rural areas are emerging as a growth frontier. Rising disposable incomes and improving retail infrastructure in these regions present untapped potential for affordable and mass-market confectionery products.
• E-Commerce Growth
  The dominance of platforms like Tmall and JD.com creates opportunities to reach tech-savvy consumers. Online-exclusive products, flash sales, and personalized marketing can significantly boost sales, particularly among younger demographics.
• Cultural and Nostalgia-Driven Products
  Brands can leverage traditional Chinese flavors and nostalgia to appeal to older consumers while introducing modern formats for younger generations. Products like White Rabbit milk candies exemplify how combining heritage with novelty can drive consumer interest.
• Demand for Premium and Artisanal Products
  Younger, affluent consumers in urban areas are willing to pay a premium for high-quality, imported, or artisanal confectionery. Customizable gift boxes and innovative textures or flavors cater to this segment’s desire for unique experiences.

FAQs

1. How big is the confectionery market in China?

The confectionery market in China was valued at approximately US$84.05 billion in 2024 and is projected to grow to US$109.53 billion by 2029. This sector encompasses a diverse range of products, including chocolate confectionery, sugar confectionery, ice cream, and preserved pastry goods and cakes.

2. What is the largest chocolate company in China?

Mars, Incorporated is the largest chocolate company in China, holding a dominant market share with popular brands like Dove and Snickers. It is followed by other key players such as Ferrero Rocher, Nestlé, and Leconte, which cater to both premium and everyday chocolate segments.

3. What are 3 major trends influencing the confectionery market in China?

1. Health-conscious options: Growing demand for low-sugar, sugar-free, and functional confectionery.
2. E-commerce dominance: Platforms like Tmall and JD.com are transforming confectionery retail.
3. Cultural relevance: Seasonal and nostalgia-driven products remain highly influential in consumer purchasing decisions.

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