Nation develops its sweet tooth

By Prime Sarmiento in Hong Kong and Chen Yingqun in Beijing | China Daily | Updated: 2019-07-15 08:56
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The White Rabbit Creamy Candy brand, which was first sold in Shanghai in 1959, has been expanded to include ice cream, milk teas, lipsticks, pillows and other products. [Photo by Yang Yi/For China Daily]

Gan Lin, 29, who is a big fan of sweet foods, opened a bakery in Mianyang, Sichuan province, after graduating with a law degree. She sells cakes made to order and sweets that are intricately designed and follow the latest trends. Her main customers are young women and children.

The women take cakes and candies with their afternoon tea, which has become a popular activity for them, and they are easily attracted by products that are attractive or feature unique designs, Gan said.

She added that candies that make people feel happier are also proving popular.

Children are usually interested in chocolate cakes and candies. Many now buy them for breakfast, as their busy parents don't have time to prepare this meal for them.

Mauro De Felip, general manager of chocolate brand Ferrero China, said that compared with other developed markets in Asia, individual consumption of chocolate in China is much lower, at 200 grams per capita annually. In Japan and South Korea the figure is 2,000 grams.

"The chocolate market in China is booming and there's plenty of potential for growth," he said.

Ferrero's business in China has grown steadily in recent years, contributing a considerable proportion of the Ferrero Group's growth.

Ferrero China's year-on-year offline sales revenue in the domestic market to March rose by 4.3 percent, compared with the confectionery industry's average growth rate of 1.8 percent, according to global market consultancy Nielsen.

De Felip said increased sugar consumption indicates that people are enjoying a higher standard of living.

"We believe the rising chocolate industry in China is driven by the huge consumption potential from a continually expanding middle class, as well as growing needs in lower-tier markets driven by urbanization. This creates potential for the mid-to premium-end market in particular," he said.

Li, the Mintel director, said the rise in food delivery services has also led to increased sugar intake, judging by the popularity of dishes with a high sugar content such as sweet and sour pork ribs and soy-braised pork.

Mintel estimates that the value of China's food delivery market reached 497 billion yuan last year, and Li said food delivery services have become an indispensable part of life for Chinese consumers with more money to spend but less time to cook.

Another factor is the increased demand for processed food as people live faster-paced lives.

According to the latest report from the US Department of Agriculture, China's food and beverage manufacturing industries grew by 6.7 percent in 2017, accounting for 70 percent of the nation's sugar consumption.

"Contacts in the industry report that consumption growth is mainly driven by carbonated beverages, as well as dairy products, especially yogurt," the report said.

"Yogurt producers reportedly prefer to use natural sugar in their products in order to improve the taste."

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