Rising Interest in Health & Wellness
Healthcare awareness is increasing, with more users prioritizing medical care, wellness, and informed consumption.
China’s snack food market has seen significant changes in recent years, with meat snacks and protein/energy bars becoming the fastest-growing categories. The market size of chili sticks, dried beans, and seasoned vegetable products has expanded to hundreds of billions. The snack industry has become more functional and health-oriented, targeting specific demographics. The rise of mass-marketed snacks and discount stores has made “snacks” overtake “beverages” as the most popular keyword in the food industry. The market size reached 465.324 billion yuan in 2022, with a compound annual growth rate of 7.1% from 2008 to 2022. In the next decade, the market is expected to further unleash $200 billion of growth space.
China’s snack food category is driven by consumer demand for sweet, crunchy, health and nutrition-focused options. Emerging categories include nuts, meat snacks, and personalized taste preferences. The core drivers are pleasurable experiences and a relaxing food experience, ensuring a satisfying and enjoyable experience.
The snack food category is evolving due to health-conscious consumers, with health-conscious products attracting growth opportunities, while high-sugar, high-oil, and high-salt snacks may face slower growth or contraction.
China’s snack food industry has shifted from classic categories like candy and chocolate to fast-growing meat snacks and nuts, as well as upgrading traditional confectionery and biscuits to become healthier, functional, and high-end, with these emerging categories expected to drive future market growth.
(1) Classic category: Snacks base plate
1. Candy: The sweetness remains, but the enthusiasm is hard to regain.
China’s confectionery industry has shifted from “no sugar” to “less sugar”, with both domestic and foreign brands entering the market. However, foreign brands dominate, with Mars Wrigley, Nestlé, Alpine, Yizzie International, and Ferrero being the top five. The confectionery snacks market is expected to decline by 11.1% and 8.7% in 2020 and 2022, respectively. The market is now focusing on reducing sugar intake and functionalizing, with 55% of consumers reducing their sugar intake. The functional confectionery market is expected to reach 23.556 billion yuan in 2020
2. Chocolate: foreign dominance, domestic breakout
In the Chinese chocolate market, foreign brands initially dominated, with Ferrero, Dove, and Snickers leading. Domestic brands struggled, with some being acquired or facing production halts. However, in recent years, emerging Chinese brands have gained traction through e-commerce, with Daily Black Chocolate and Daily Dark Chocolate becoming top sellers on Tmall. The market witnessed the rise of subcategories like black chocolate and truffle chocolate, experiencing 90% growth during the 2021 “double 11” period. Despite a stable competitive landscape, overall growth slowed, and China’s chocolate consumption remains comparatively low. Future trends indicate a focus on sugar reduction, aligning with global chocolate market shifts.
China’s chocolate market is stable with a slow growth rate, reaching 22.07 billion yuan by 2022. The top five brands, including Dove and Nestle, consistently hold a 69.1% market share. Despite low chocolate consumption in China compared to Japan, South Korea, and Singapore, the market faces a slowdown. The future trend emphasizes sugar reduction, aligning with a projected 2 billion yuan growth space in the global sugar-free chocolate market by 2028, according to Beziers Consulting.
3. Biscuits: more than just hunger
China’s biscuit industry underwent a significant transformation post-1980s, evolving from limited production to a diverse market. Classic products like Want Want Shelly Senbei and Hsu Fu Chi’s French pancakes marked the industry’s “blossoming” stage. In the 1990s, foreign brands like Oreo introduced chocolate and biscuits but initially struggled due to taste differences. Localized improvements, reducing sugar and enhancing flavor, led to Oreo’s sales surge by over 50%. By 2022, Oreo had claimed the top spot in China’s sweet biscuit category with a 19.4% market share. Despite sluggish overall growth in recent years, the packaged biscuits market size in 2022 reached 48.67 billion yuan, constituting about 10% of the entire snack food market.
Biscuit market growth extends beyond flavor to health, functionality, and premiumization. Stormy Unicorn’s high-fiber meal replacement biscuits thrive on Jingdong with 500,000 reviews, while Marsala’s low-GI biscuits with konjac and buckwheat garner 200,000 reviews. Medicinal foods with upscale ingredients, evident on Tmall, show notable growth, with black rice, yam, and monkey mushrooms contributing to top-ranking market size growth. High-end ingredients like black truffle and ham are well-received, as highlighted in the 2023 Tmall Biscuit Puffed Industry Trend Report.
4. Potato chips: be happy, not fat!
The evolution of the crisp market in China reflects changing consumer preferences. In the 1990s, foreign brands like Lay’s and Pringles faced challenges due to high prices, prompting the rise of domestic low-end alternatives. Copico, endorsed by Jay Chou in 2003, gained prominence with a 17.3% market share by 2022, surpassing Pringles. As consumption levels improved, crisps became a staple with innovative flavors such as cucumber and lime. However, concerns over traditional high-calorie, high-oil, and high-salt crisps have slowed market growth since 2010, with a 0.9% decline in 2022. The market is highly concentrated, with foreign investors, led by Lay’s, holding a 50.8% share.
The crisps category is shifting away from the “junk food” label by upgrading raw materials. Lay’s in China introduces innovative flavors like taro chips and yam slices, incorporating health-focused ingredients such as red dates and wolfberries. Additionally, efforts to reduce oil and saturated fat, such as Lay’s “50% less saturated fat” formula introduced in November 2023, contribute to making crisps healthier.
5. Ice cream: the choice of taste and price
China’s ice cream evolution began in the 1920s with “Beauty Girl” popsicles, while Yimin Food Factory No. 1’s “Guangming Brand” dominated until 1993. Foreign brands like Haagen-Dazs challenged this in the 1990s, leading to Yili and Mengniu rise through channel expansion and affordability. Recent years have seen high-end strategies, with Mengniu Tilan Shengxue and Zhong Xuegao’s Tmall rankings. Mengniu’s Moutai ice cream faced backlash in 2022, but high-end offerings persist. In 2023, major brands introduced over 70 new products, of which 51% were priced above 10 yuan. Affordable ice cream dominates, with 70.9% accepting prices between 3 and 10 yuan. China’s ice cream market is diverse, with low concentration and Yili leading with a 21% share. Innovation focuses on taste, health, and portability, responding to changing consumer preferences.
5. Ice cream: the choice of taste and price
China’s ice cream evolution began in the 1920s with “Beauty Girl” popsicles, while Yimin Food Factory No. 1’s “Guangming Brand” dominated until 1993. Foreign brands like Haagen-Dazs challenged this in the 1990s, leading to Yili and Mengniu rise through channel expansion and affordability. Recent years have seen high-end strategies, with Mengniu Tilan Shengxue and Zhong Xuegao’s Tmall rankings. Mengniu’s Moutai ice cream faced backlash in 2022, but high-end offerings persist. In 2023, major brands introduced over 70 new products, of which 51% were priced above 10 yuan. Affordable ice cream dominates, with 70.9% accepting prices between 3 and 10 yuan. China’s ice cream market is diverse, with low concentration and Yili leading with a 21% share. Innovation focuses on taste, health, and portability, responding to changing consumer preferences.
6. Dried Fruit: Attack of the Fruits
Dried fruits and nuts, which account for 4.9% of China’s snack food market, have a wide range of products, on a small scale. The industry has evolved from handmade workshops to modernized production, from large single products to combination products. Since 2000, companies have innovated in product form, segmentation, and standardization. The market is growing towards healthy raw materials and innovative forms, with sugar-reduced and additive-free traditional dried fruit products growing at a high rate. Combination dried fruit products, such as milk jujube, have also seen high-speed growth. The growth of the dried fruit market is driven by the increase in the consumer population and the rise in unit price. The market concentration is low, with the top five market players at 28% in 2022. Traditional products account for a large market share, with dried fruit, jujube, and plums ranking in the top three in consumption scales. The diversity and low concentration of segmented categories in the dried fruit market indicate potential for future growth.
1. Nuts: The Chosen Child of Healthy Snacking
Nuts are a rapidly growing category in the health trends industry, with brands like Shazi Melon Seeds and Qiaqia Melon Seeds gaining popularity due to their taste and marketing advantages. The establishment of offline sales channels has led to high growth in standardized packaged nuts, with Qiaqia’s sales increasing to 400 million in 2001. Three Squirrels, founded in 2012, has ranked first in Tmall’s “Double 11” snack category for eight consecutive years. Health awareness has led to the rise of small packages of mixed nuts, with Wolong pioneering the daily nut category in 2015. The mixed nut market size expanded from 3.2 billion to 11.5 billion from 2017 to 2021, with mixed nuts occupying the main market share of 28%.
1. Nuts: The Chosen Child of Healthy Snacking
Nuts are a rapidly growing category in the health trends industry, with brands like Shazi Melon Seeds and Qiaqia Melon Seeds gaining popularity due to their taste and marketing advantages. The establishment of offline sales channels has led to high growth in standardized packaged nuts, with Qiaqia’s sales increasing to 400 million in 2001. Three Squirrels, founded in 2012, has ranked first in Tmall’s “Double 11” snack category for eight consecutive years. Health awareness has led to the rise of small packages of mixed nuts, with Wolong pioneering the daily nut category in 2015. The mixed nut market size expanded from 3.2 billion to 11.5 billion from 2017 to 2021, with mixed nuts occupying the main market share of 28%.
2. Meat snacks: talented players enter
Meat snacks, including meat and seafood snacks, have high protein properties and are popular in the market. Ham sausage, a popular choice for eating meat, has been around since the 1990s. Yangshengtang’s Mother brand beef sticks emerged in 2004, offering Western-style grilled positioning. Pork jerky, a popular snack, has been slow to develop due to channel restrictions and outdated technology. Comprehensive brands like Bestore and Baicaowei have made pork jerky popular, with terminal sales exceeding 500 million in 2021. Casual braised food, such as Zhou Hei Ya and Juewei, has accelerated its development, with brands like Juewei and Tmall entering the market. The focus has shifted from deliciousness to health and nutritional value, with brands like Tyson and Hormel attracting new players. Emerging brands like Wang Xiaolu have entered the braised snack market, winning top positions in Tmall’s meat snack list and Douyin’s chicken category. The competitive landscape in China’s meat snacks is fragmented, with leading companies having low market shares.
3. Other flavored snacks: “Grassroots” take the big stage
Other flavored snacks, including pasta, casual vegetable, and dried bean products, are transforming “grassroots” ingredients into modern delicacies. The market size of these snacks is close to 100 billion, with seasoned noodle products, leisure vegetable products, and dried bean products accounting for 28.6 and 18.2 billion, respectively. The chili bar industry is moving towards standardization and health, with Weilong improving the stereotype of chili bars as “junk food” through a workshop promotional video. Konjac, a low-calorie snack, has become the most popular snack in the world, with the Tmall platform’s Konjac snacks increasing by 47% in Q1 2021. Konjac deep processing is expected to provide a breakthrough, with Konjac flour accounting for 83.22% of the overall revenue. Other-flavored snacks are expected to grow at a CAGR of 7.1% from 2022–2027, higher than the average indicator for the snack industry (5.9%).
4. Protein/energy bar: spinach for the new Popeye
Protein/energy bars are nutritious and satiating bars made from whey protein, casein, or legumes, while energy bars are made of carbohydrates from whole grains, oats, and dried fruits. The Chinese market for these bars is growing, with Euromonitor International estimating a total retail scale of 1.164 billion yuan in 2022. Protein bars are popular in meal replacement, exercise, and body management. Ffit8, a Chinese brand, sold 10.5 million protein bars in 2020. The market is expected to grow at a compound annual growth rate of 5.34% in the next five years, with the Asia-Pacific market growing fastest.
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