Chinese confectionery market continues to grow fast

According to Chen Tianjing, chairman of the Chinese confectionery association CNCA, China’s 400 confectionery manufacturers produced 1.8 m tonnes of chocolate and sugar confectionery in 2010, 28% up on 2009. Sales climbed over 26% to total RMB (CNY) 58.75 bn (€ 6 bn). Growth was achieved from a relatively low baseline, however, with per capita consumption only 1 kg.

With increasing income and broader distribution, especially in China’s vast rural regions, experts agree that demand is set to grow over the next few years. A significant market for German and European manufacturers is thus opening up. Distribution, however, remains a huge challenge for all manufacturers, whether domestic or from abroad.

According to one major concern, there are some 2 million retail outlets in China. Modern retail stores account for under 5%. Although that percentage is steadily increasing, in the years to come China’s typical open, outdoor markets and small – even tiny – stores will continue to account for most sales.