Special focus: China’s continued confectionery rise

Despite ongoing economic and trade challenges, China’s confectionery sector is thriving, fuelled by rising consumer demand, strategic investment, and expanding global industry collaboration. Daisy Phillpson reports

As the second-largest economy in the world, China remains resilient despite slowing growth, with the government focusing on lifting domestic consumption and trade diversification to offset uncertainties in US-China relations, including potential issues related to tariffs and export controls. The food industry plays a pivotal role in this economic strategy, with the agricultural sector contributing around 6.8% to the GDP of China in 2024, according to Statista.

Additionally, Mordor Intelligence reports that the foodservice industry has experienced notable growth, with revenues reaching approximately $584.75 billion in 2025 and projected to grow at a CAGR of 4.4% to reach $725.23 billion by 2030.

The confectionery sector has made notable gains in the region. Statista states that revenue in the country’s confectionery market amounts to $88.70 billion in 2025, and is projected to reach $117.86 billion by 2030 with a CAGR of 5.85% between the forecast period. Among the key drivers is a shift towards healthier and more functional products, as consumers prioritise wellness and nutrition.

But there is also a rising demand for premium and indulgent sweet treats, as disposable incomes increase and consumers seek out new and unique experiences. This trend is further fuelled by the influence of social media and seasonal celebrations. The same can be said for China’s dynamic bakery market, which has witnessed significant growth in the past five years. Statista’s report on the region’s bread and bakery product market shows revenue amounts to $303.09 billion in 2025, with a projected CAGR of 8.09% from 2025-2030.

Making moves in cocoa
Chocolate continues to carve out a strong position, with opportunities in premium and artisanal segments driving demand. Earlier this year, news emerged that Nanning-based firm China Light Industry Nanning Design Engineering had completed work on building the largest cocoa factory and warehouse in the Ivory Coast.

The facility, located in Abidjan, is the second the firm has built in the country as part of a 2019 deal, with the Chinese government advancing nearly $200 million to fund the infrastructure. Each plant is intended to have an annual processing capacity of 50,000 tonnes, and the deal also includes the creation of cocoa warehouses in each location.

In return, China Light Industry Nanning Design Engineering has agreed for 40% of the output from the plans to be sold to Chinese companies. This large-scale investment underscores the region’s long-term commitment to securing a steady supply of cocoa and strengthening its position in the global chocolate market. Alongside these infrastructure projects, investment in the cocoa sector also extends to technological advancements, with companies focusing on machinery innovation and research to enhance processing efficiency.

A key player is Zhengzhou-based Gelgoog Machinery, renowned for its expertise in end-to-end cocoa processing technology and equipment solutions. As stated by sales specialist Serena Han, “Gelgoog continues to invest in cocoa food process research. We have established a professional cocoa process laboratory and mastered the complete process flow from cocoa beans to cocoa nibs, cocoa liquor, cocoa butter, and cocoa powder.” “In recent years, Gelgoog has provided cocoa processing solutions to over 40 food companies across 16 countries,” Han added. “After adopting Gelgoog’s solutions, our clients’ product flavour metrics have met international standards, resulting in improved commercial returns.”

Global partnerships drive growth
International machinery manufacturers continue to have a strong presence in the sector. In 2024, Bühler Group reported an increase in its profitability, reaching an EBIT of CHF 227 million and an EBIT margin of 7.6%. Although turnover in China witnessed a decline last year, Bühler’s geographical footprint remained balanced, with Asia accounting for 26% of total turnover, down slightly from 27% the year prior.

Despite subdued consumer demand and intense price competition, Nestlé China delivered positive RIG in every quarter of 2024. According to the company’s financial results, this resilience was driven by faster innovation in key categories and adaptations in route-to-market and channel strategies.

Confectionery saw mid single-digit growth, led by strong performances from Hsu Fu Chi and Shark Wafer and supported by new product launches and e-commerce expansion. In the baked goods arena, last September, Mondelēz International announced plans to acquire a significant majority stake in Evirth, a leading manufacturer of cakes and pastries in China. Mondelēz already has a minority investment in the company, with Dirk Van de Put, Mondelēz chair and CEO, stating, “We’re excited about the opportunity to accelerate our growth in cakes and pastries through continuous innovation, leveraging our high-value brands to create more premium tastes and formats.” As outlined in the announcement, Chinese consumers increasingly seek fresh, premium options with innovative and sophisticated taste profiles to meet a growing range of snacking occasions.

This evolving landscape is reflected in the growing collaboration between China and international markets, as industry leaders seek to capitalise on emerging opportunities. Against this backdrop, the first-ever China Bakery and Confectionery Market Insights Seminar debuted in Osaka, Japan earlier this year, marking a key milestone in industry collaboration between China and Japan. Organised by the China Association of Bakery and Confectionery Industry and Bakery China Exhibitions Co. Ltd, the event gathered industry leaders to explore market opportunities and deepen partnerships.