Sweet Biscuits, Snack Bars and Fruit Snacks in China

PROSPECTS

Sweet biscuits out of synch with prevailing demand trends

Sweet biscuits consistently failed to register volume growth throughout the review period, with the category’s potential for expansion constrained by the availability of a wide range of rival products competing for consumers’ attention, such as baked goods and savoury snacks. In addition, many sweet biscuits contain high levels of sugar and calories and are, therefore, at odds with the prevailing health and wellness trend, especially as sugar becomes an increasing focus for concerns about diet and health.

Wafers stand out by appealing to demand for savoury flavours and exotic brands

Wafers stood out in sweet biscuits at the end of the review period, achieving both volume growth and a dynamic rise in value sales. The category’s strong performance was driven partly by the success of manufacturers in catering to the growing preference for savoury flavours, which many consumers perceive as being healthier than sweeter options.

Protein/energy bars boosted by exercising trend

Protein/energy bars was the fastest-growing category in sweet biscuits, snack bars and fruit snacks in 2019. The category is seeing its dynamism driven by the rise in health- and body-consciousness leading to an increasing number of Chinese people engaging in regular exercise and sporting activity, as well as increasing publicity surrounding protein supplementation.

COMPETITIVE LANDSCAPE

Mondelez maintains lead with ongoing invigoration of Oreo

Mondelez maintained top spot in sweet biscuits in 2019, thanks to the strong performance of its Oreo brand, which was extended with the new wasabi and spicy chicken wings flavours in 2018. This came a year after the relaunch of the Oreo brand with a series of innovative marketing initiatives designed to attract younger consumers.

Shanghai Glico Food Co drives growth with strong marketing and innovation

Shanghai Glico Food Co saw robust growth in the sluggish sweet biscuits category in the final year of the review period. The company’s strong performance is founded on strong marketing and product innovation activity.

MuscleTech builds strong image with serious exercisers

MuscleTech from Xiwang Foodstuffs Co Ltd was a key driver of growth in protein/energy bars at the end of the review period, benefiting from a high level of brand-awareness due to its relatively early market entry, in 2009. The brand is perceived to have expertise in sports nutrition, marketing its products as offering “Superior Science.

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