China Sugar Confectionery Market Research Report, 2027

China Sugar Confectionery Market Research Report, 2027

Actual Market Research 28-07-2022 60 Pages Region : Asia-Pacific Category : Food & Beverages Food

China is the third largest producer of sugar cane, and this drives the sugar confectionery market to fulfil its sugar requirements; only marginal sugar needs to be imported. Chinese markets and tastes are experiencing a rapid change both ideologically and economically that affects their taste preferences. The sugar confectionery market is thus developing with new flavours, ingredients, shapes, and sizes to gain leverage on the rising demand from consumers. Consumers' attraction to western food and lifestyles, coupled with rising per capita income, is further driving the market's growth. International players are also tapping into the growing markets of China by setting up new plants and sales channels. To stay in the competitive markets, the local players are focusing on diversifying their products and marketing them effectively. They are investing in research, advertisements, branding, and packaging to gain the emotional support of the consumers. To attract more consumers, famous celebrities are considered for advertising and promotional activities. High levels of foreign investment and a large number of joint ventures have led to solid technological advancements and higher industry output.

According to the report titled "China Sugar Confectionary Market Research Report, 2027", published by Actual Market Research the sugar confectionery market is to grow rapidly by around USD 8 billion by the end of the year 2027. The sugar confectionery market share of the hard-boiled sweets type is expected to grow, driven by their higher popularity among kids. It is the simplest form of confectionery that comes in a glossy state and is easy to manufacture. Fruit drops, barley sugars, acid drops, hard gums, butterscotch, toffee, and caramel are some of the most consumed hard-boiled candies. Another factor influencing the product demand is the growing trend of boosting blood sugar quickly. Mints are generally perceived to contain less sugar than other types of sugar confectionery products, and have the added functional benefit of helping consumers maintain fresh breath. The store-based segment is expected to grow owing to access to several different flavours and attractive packaging of toffees, candies, and lollipops in supermarkets, convenience stores, malls, hypermarkets, and duty-free outlets. Supermarkets and hypermarkets are witnessing growing consumer preference as they are filled with an assortment of sugar candies that are far larger than grocery or convenience stores. The increasing sales of confectioneries in this type of distribution channel are due to the tactical placement of products that additionally anchor the market development. The improving lifestyles, increasing spending capabilities, and growing product consumption in China will drive the regional market growth of the Asia-Pacific region. In recent times, Nestle and Dove have established factories in China, followed by Ferrero and Mondelez. Dragon beard candy, white rabbit candy, good luck candy, hawthorn candy, Wangzai gummy candy, brown sugar candy, HFC assorted crispy candy, Green days ginger candy, botan rice candy, coffee candy are some of the famous sugar candies in China.

Consumers are diversifying towards sugar-free candies owing to medical and health problems. Along with diabetic consumers, the healthy populace is also demanding sugar-free candy to lead a healthy lifestyle. With the introduction of new flavors, gifting trends, healthy ingredient labels, and impulse buying, middle-class consumer demand is rapidly increasing. The rising population is expected to drive the demand for sugar confectionery in future markets. On the other hand, the key players are focused on improving technical developments to increase efficiency. However, the growing concerns about obesity-related diseases and the shifting preference for organic ingredients may restrict the industry's growth. The increasing gifting trends during special occasions, festivals, and birthdays, coupled with new innovative flavours and healthy ingredients, are expected to fuel the market's growth.

The new trend would be for healthy candies that are low in sugar content or sugar-free. Consumers are always intrigued by new variants and flavours that will drive demand. also a vital factor in the impulse buying habits of consumers. Consumers should look out for more vitamin C content and throat lozenge candies.

COVID-19's Impact 
Lockdowns in 2020 and continuing restrictions in 2021 disrupted the supply chain, posing challenges for manufacturers in the sugar confectionery market. In 2020, the pandemic outbreak deteriorated the category’s performance due to a reduction in impulse purchases amongst consumers. The sugar confectionery market suffered heavy losses during the pandemic as there was no impulse buying and, as it was not essential, consumers did not pay attention to them. Also, since the lockdowns were imposed, there were no gatherings, weddings, or birthday parties, and thus there were fewer people to be consumed. However, in 2021, the economy recovered at a slower pace than earlier. As Chinese consumers were looking to minimise the time and money spent in stores, they focused on buying the essentials. Sugar confectionery is not essential and thus was not considered a priority. People tend to look for familiarity and affordable pleasures in times of crisis. That offers brands the opportunity to recapture consumers they may have lost and to gain new fans through great-tasting, fun products that also have functional benefits and better-for-you claims. Intense competition, pricing issues, and shifting consumer preferences will continue to put downward pressure on vendors’ profit margins.

Considered in this report

•    Geography: China
•    Historic year: 2016
•    Base year: 2021
•    Estimated year: 2022
•    Forecast year: 2027

Aspects covered in this report

•    China Sugar Confectionery market with its value and forecast along with its segments
•    Various drivers and challenges
•    On-going trends and developments
•    Top profiled companies
•    Strategic recommendation

By product type in the report:

•    Hard-boiled sweets
•    Plain Mints
•    Caramel/Taffy
•    Chewy
•    Novelty
•    Liquorice
•    Sugar-free
•    Others (Nut, coconut, marshmallows, fudges, medicated throat lozenges)

By sales channel in the report:

•    Supermarkets/ hypermarkets
•    Convenience stores
•    Pharmacy & drug stores
•    E-commerce retailers
•    Others 

By age group in the report:

•    Children (1-20 yrs)
•    Adult (21-55 yrs)
•    Geriatric (56 & above)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. 

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to sugar confectionery industry, chocolate industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.



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