A recent report released by USDA Foreign Agricultural Services (FAS) has provided interesting insights on China’s growing US$13 billion confectionery segment (refer Chart 1.0), which is driven by health-conscious consumption, premiumization, and product innovation.
Due to rising demand for premium and high quality confectionery, imports have also surged nearly 40% in early 2025, reflecting strong momentum despite economic headwinds. Seasonal consumption, especially around holidays, remains a key sales driver, according to the report while younger consumers are reshaping preferences toward dark chocolate, functional ingredients, and mini formats.
U.S. exporters, being one of the major players in the market, face challenges such as high tariffs and competition from European and Southeast Asian brands, however it can capitalize on the growing demand for organic, low-sugar, and functional products.
The confectionery market in China is growing at a CAGR of 4-5%, and the country is also the world’s 5th largest importer bringing in US$1.6 billion confectionery products in 2024 alone.
Candy and chocolate importers in China are primarily concentrated in first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen.
Due to seasonal demand and logistical considerations, particularly the need to avoid transporting heat-sensitive products during warmer months, the peak import period, especially for chocolate, spans from September through February. This window aligns with a succession of holidays beginning in October and culminating with Valentine’s Day in February, making holiday consumption a critical driver of sales.
In addition to the popularity of Western holiday seasons like Christmas and Valentine’s Day in first-and second-tier cities, the traditional Chinese Spring Festival also represents another major sales peak. Candy, which symbolizes sweetness and happiness, holds deep cultural significance during this time. Families traditionally stock up on candy and chocolate for the Spring Festival, both for personal enjoyment and as festive gifts. Packaging plays a vital role in consumer choice, with red and gold designs preferred due to its association with celebration, prosperity, and good fortune.
Women represent the dominant consumer group in China’s confectionery market, accounting for approximately 70% of total consumption. Meanwhile, dark chocolate is most popular among young adults aged 18 to 30, who are drawn to its health and lifestyle appeal. In contrast, children tend to favor novelty products, which feature playful designs, vibrant packaging, and interactive formats.
Chinese consumer preferences, especially in the urban areas, are shifting away from traditional hard candies and milk-based sweets toward functional and sugar-free alternatives, reflecting growing health awareness. Packaging innovation continues to play a critical role in attracting younger consumers, with visually engaging and trend-driven designs driving impulse purchases. Flavor profiles have also diversified, evolving from single-fruit varieties to more complex blends—including mixed fruit combinations and tea-infused options. Among all categories, gummy candy stands out for its rapid growth, outpacing other segments in both sales and consumer engagement.
Meanwhile, imported chocolate especially from Europe dominates the China market with brand reputation and product origin playing a pivotal role in purchasing decisions. Chocolate consumption has evolved from occasional holiday gift-giving into a staple of everyday indulgence. New consumption scenarios now include fitness and sports recovery, stress relief, mood enhancement, and casual sharing among friends — reflecting deeper lifestyle integration and growing demand for functional and emotionally resonant products. In addition, the rapid expansion of ice cream and bakery industries have further fueled growth in chocolate consumption.
China’s confectionery market is evolving toward premiumisation, health and innovation, with strong growth in dark and organic chocolate, low-sugar options, and mini formats. Brands are responding with upscale offerings, IP collaborations, and packaging tailored for everyday indulgence and active lifestyles. (see Chart 2.0)
In terms of distribution, online channel is expected to grow to 25% share of total confectionery sales by 2025, while offline channels including supermarkets remain the main channels of distribution for confectionery products in China. Live-streaming e-commerce now accounts for over 30% of online sales, with short-video platforms fueling this momentum. (see Chart 3.0)
Malaysia is the largest exporter to China with more than US$270 million of confectionery products followed by Indonesia (US$205 million), Italy (US$140 million), Singapore (US$135 million) and the US (US$130 million). This shows that Southeast Asia is increasingly becoming a major supplier of snacks and confectionery to the China market and this trend is expected to remain so in the current decade.
While domestic confectionery brands have continuously gained market share, premium confectionery products from Europe and the US continue to be in strong demand. In addition, both domestic and international players need to be mindful of changes in consumer dietary preferences in favour of the health and wellness trends.
