As the world celebrates the month of love, popular chocolate makers across the globe have testified of how the Chinese market opened doors for opportunities to grow their businesses in the world's second largest economy.
In his book "Chocolate Fortunes: The Battle for the Hearts, Minds, and Wallets of China's Consumers," former Hershey Co and Nestle CEO, Lawrence Allen wrote that the country opened doors for chocolate companies to make it big, Asia News Network reported.
Back in the day, chocolate wasn't a thriving industry in China. However, the chocolate market started gaining traction by the 1990s, with top chocolate brands such as Cadbury, Nestle, Hershey, Ferrero, and Mars establishing their names in the country.
Allen noted that two of the major drivers for the chocolate industry's growth in the Chinese market are changes to marketing strategies and lower price tags. To adapt to China's consumption standards, Hershey and Mars established their own production plants in the country, allowing for cheaper offers.
Among the brands that made it big in the Chinese market is Dove, a subsidiary of Mars that's sold in Western regions as Galaxy. The brand's tagline of "outright enjoyment and smoothness" has become a mainstay in China.
Dove Marketing Director, Amanda Xing explained that the brand has been educating Chinese consumers about "what a quality chocolate should taste like" as part of its ultimate goal of turning the product into something that's part of a consumer's everyday life.
Another popular company that sells other products in China aside from chocolate is Nestlé. The food giant reported sales growth of 2.1 percent in 2018, as supported by strong demand from the Chinese and American markets.
Food Bev reported that the food and drinks mammoth is pleased with developments recorded last year. CEO Mark Schneider said, "All financial performance metrics improved significantly and we saw revived growth in our two largest markets, the United States and China, as well as our infant nutrition."
Last year, market research firm Ebrun predicted that China's chocolate market will increase in value to 40 billion yuan by 2020. According to The South China Morning Post, analysts are expecting international chocolate brands to continue expanding in the country.
Barry Callebaut, Zurich-based chocolate giant, announced plans last year to build two plants in China mainland within the next five years. For the company, the Chinese market has a lot of space to grow further in terms of consumption and demand.
