Dominate China's Chocolate Market by Foreign Chocolate Brands


Foreign chocolate brands such as Dove, Cadbury and Hershey already captured about 70% of China's chocolate market. As Barry Callebaut, the world's chocolate manufacturer with 25% of the global market, opened its first chocolate factory in China in Suzhou City recently, the largest chocolate company 20 world have now all entered the Chinese market. But in the face of global competition, companies of local chocolate from China were still in the value chain suppressed down.

The second biggest chocolate market

biggest chocolate market

Since the 4 billion Swiss francs in sales has created a year Barry Callebaut its first production line in Suzhou, a complete chain of the multinational chocolate industry also draws. Industry insiders suggested that it would be a blow to the local Chinese chocolate companies in this global competition. In recent years, the global chocolate market has slowed down, with only 2-3% growth per year. So China became the second largest chocolate market in the world behind the US. 20 of the biggest chocolate companies in the world have all entered China and more than 70 imported brands or chocolate JV in China market.

Barry Callebaut has made it clear that they come to share in China's economic growth and to participate. "We hope that we will use the full capacity of this plant to quickly increase production from 25,000 tons to 75,000 tons, the largest chocolate factory in the world," said Barry Callebaut CEO Patrick De Maeseneire.

Multinational ambitions

Multinational chocolate market

It is understood that the new plant in Suzhou Barry Callebaut Asia Pacific headquarters of the company is located, as well as a distribution network centre China and multinational food manufacturers and specialized to serve customers. Major brands such as Cadbury, Hershey and Nestle currently have the large amount of Barry Callebaut construction contracts Outsourcing, whose production of cocoa liquor and chocolate OEM amounts to 15-20% of each annual production of the three major "brands. The US Hershey determined to plough the Chinese market, to achieve the plan by 2010 23% of the shares of the local market and the second place in China. Meanwhile, Korean and Japanese chocolate manufacturers are also to accelerate its entry into the Chinese market.

Local companies that are not in the local market

local market chocolate

Although the Chinese chocolate market in rapid growth is good news for the local chocolate companies, Chinese consumers today often refer foreign brands such as Dove, Cadbury, Hershey and Ferrero, they rarely mention the local brands.

Through the processing of inadequate equipment and incomplete production, product quality assurance is difficult for much local chocolate companies. Currently, most local chocolate companies are caught in an embarrassing situation of low product quality.

Industry problems that involve above calculated opportunities for local companies competing for the Chinese chocolate market. Multinational chocolate brands came to the Chinese market, one after another, since 1990 the years, and now they are in a dominant position. As Barry Callebaut finally entered the Chinese market, even produce its chocolate factory in Suzhou cheaper for multinational brands. For the local Chinese companies mainly in the low-end market, they can not carry out more in this market segment companies.

Keep up with the globalization

globalization chocolate market

Statistics show that there are about 63 large local chocolate companies in China with an annual output of 150,000 tons. Industry Associations statistics also revealed that China currently has about 250 chocolate company has total.

Industry insiders pointed out that the Chinese food and beverage industry is a competitive and international market to a large extent. The great potential of China's chocolate market is defined not only for foreign brands but also from the local chocolatier. The local chocolate industry is now present in a structural change and phase of survival-of-the-fittest, and without a doubt, the entry of foreign brands challenges for the local industry. But if the local chocolate companies can in this international competition to participate, the only able to increase the demand for Chinese consumer chocolate, but also to promote the development of China's chocolate market.

Local Chinese chocolate companies must continually ensure product quality, select finer raw materials, improve the production equipment, the adoption of international technology, to improve to improve product innovation and brand management. Only then can they compete with multinational companies on an equal basis, representing a breakthrough in this market dominated make foreign Chinese chocolate.
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