Hsu Fu Chi, a leading domestic confectionery brand under Nestle, has bolstered its production capacity to meet surging demand for festive snacks during the Chinese New Year period.
In February, it unveiled a new Rmb 200 million (US$29 million) fully-automated smart juice gummy production facility in Dongguan, Guangdong province. The 14,000 sq.meter facility is designed to produce 40 tons of juice gummies daily.
The expansion followed Hsu Fu Chi’s 2023 capacity boost and aims to secure a steady supply of its best-selling juice gummies during the holiday season.
Nestle’s investment comes amid rapid growth in China’s snack food sector, with consumers increasingly seeking healthier, fun and indulgent options. The Dongguan facility integrates advanced German technology and AI-powered systems designed to optimize production.
Features include automated guided vehicle logistics, robot-assisted material handling, unmanned forklift storage and a fully automated cleaning system. The upgrades are expected to increase production capacity by 30%, improve efficiency by 20% and reduce energy consumption by 15%.
According to Kais Marzouki, CEO of Nestle Greater China, “The launch of the juice gummy production line is a clear demonstration of Nestle’s commitment to China, our second-largest global market. This investment marks a new chapter, where intelligent manufacturing drives value chain upgrades and local innovations that benefit our global network.”
Since 2020, Nestle has invested over Rmb 5 billion (US$725 million) in China, focusing on high-growth sectors such as infant formula, snacks and pet care. In 2025, Nestle completed its full acquisition of Hsu Fu Chi.
Mintel estimated that 70% of limited-edition products are launched with Chinese New Year-themed packaging, as consumers increasingly choose candies, chocolates and other sweets for children during the festive season. It also highlighted that young adults aged between 18 and 29, multi-person households and parents with children aged between four and 12 are the primary demographic drivers. Young consumers tend to prioritize personal enjoyment and social sharing, while family buyers focus on emotional connection, and parents seek products with nutritional benefits.
In China, new product development is leaning toward healthier, functional options, including vitamins, probiotics and low or no-sugar varieties, alongside emotionally engaging items such as holiday-limited editions or nostalgic flavors, according to Mintel. While traditional candies like hard candy, mints and crisp candy still dominate, the market share of functional candies and confectionery products is growing steadily.
