China’s Growing Sweet Tooth to Ensure Growth for Confectionery Market to 2017

Sugar Confectionery remains the largest category in the Chinese market, but Chocolate is set to be the fastest growing, according to a new report by Canadean.

 The Chinese Confectionery market has remained buoyant in the face of a comparative economic slowdown. The sector is expected to continue to grow over the next five years, with a value Compound Annual Growth Rate (CAGR) of 9.5% forecast to 2017. Volume growth comes in slightly lower at 6.3%. In 2012, the Confectionery sector in China was sixth largest out of the fifteen sectors monitored by Canadean.
Sugar Confectionery was by far the largest category in 2012, with 73.1% of the sector’s value and 86.6% of its volume. Category growth is forecast to fall just below the sector average for both value and volume, at 9.4% and 9.2% CAGR respectively. This suggests that the Chinese consumer still retains a great deal of interest in this more traditional category.
The Gum category recorded a 6.8% volume share in 2012. Although per capita consumption remains low, China is now the world’s second largest market by volume after the US. The category is expected to show positive growth to 2017, with a CAGR of 6.2% for volume and value at 9.5%.
The Chinese Chocolate category is relatively small and in 2012 it accounted for 6.6% of volume in the Confectionery sector. However, rising prosperity has seen a growing consumer interest in the category over recent years. It is forecast that both value and volume will grow above the sector average to 2017, with CAGR of 10.1% and 7.4% respectively.

Convenience Stores accounted for the largest share of the Confectionery sector in China

Convenience Stores continued to be the largest distribution channel for Confectionary in China between 2009 and 2012, accounting for just below half of the entire market. However, the channel posted a fall in overall share, as did Food & Drinks Specialists. In contrast, Hypermarkets & Supermarkets, the second largest distribution channel for Confectionery, increased its share. This supports the increased presence of such stores across China, and the channels growing importance in a number of sectors.


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