YUHUA TRADING

The Chinese gummy candy industry will still have great benefits in the next 10-15 years. Because China still needs a large number of domestic soft candy brands to fill the Chinese market. However, in the next 10 years, the gummy candy industry will also face fierce competition. So, Chinese gummy candy manufacturers need to pay more attention to market segmentation, understand consumer needs, and innovate greatly in the future. Only in this way can we occupy a favorable position in the gummy candy industry. With the continuous increase in the total demand for candies in China at present, competition among manufacturers has become increasingly fierce. Many candy manufacturers choose to use synthetic pigments to ensure that candies have a more vivid appearance and stimulate consumers to purchase. Under the new wave of consumption, every sub category contains infinite possibilities. The demand of the new generation of young users for quality life and nutritional health determines that the hard core strength and explosive potential hidden under the "soft appearance" of nutritional gummies cannot be underestimated. In 2016, China's candy production was 3.5185 million tons, with a growth rate of 1.85%, an increase of only 63800 tons compared to last year. From 2017 to 2018, it decreased for two consecutive years. In 2018, the production was 2.8837 million tons, a year-on-year decrease of 12.99% compared to 2017. In 2019, the production was about 3.3772 million tons. Although the output of China's candy industry has shown a fluctuating trend in recent years, especially with significant changes in 2018, overall, it still shows a slight upward trend. From 2017 to 2020, the compound annual growth rate of soft candy production was approximately 0.93%. It is expected that in the coming years, with the increasing demand for gummy products and the maturity of production technology, the output will continue to grow, and by 2025, the output will exceed 498400 tons.

According to the classification of candies, candies can be divided into hard candies, hard sandwich candies, creamy candies, gel candies, polishing candies, gum based candies, inflatable candies and tablet candies, among which hard candies are a kind of hard and crisp candies with white granulated sugar and starch syrup as the main ingredients; Hard sandwich candy is a type of candy that contains a filling in its core; Milk fat candy is a candy made mainly from white sugar, starch syrup (or other sugar), oil, and dairy products, with a protein content of not less than 1.5% and fat content of not less than 3.0%. It has a special milk fat aroma and burnt aroma; Gel candy is a soft candy made with edible gum (or starch), white granulated sugar and starch syrup (or other sugar) as the main ingredients; Polishing candy is a candy with a shiny and solid surface; Gum based candy is a chewable or bubbly candy made primarily from white sugar (or sweeteners) and gum based substances; Inflatable candy is a candy with fine and evenly distributed bubbles inside the sugar body; Pressed candies are candies that are formed by granulation, bonding, and pressing. Consumers should pay attention to the following points when purchasing candy: 1. It is recommended to purchase candies in formal large shopping malls or supermarkets, as large shopping malls have strict control over the procurement of distributed products, standardized procurement channels, and guaranteed product quality and after-sales service. 2. Choose products produced by large enterprises or branded enterprises with standardized management and stable product quality. 3. Check the labels and packaging. Firstly, observe whether the outer packaging is clean and tidy, whether the printing is clear, whether the labels are complete, and whether the product is within its shelf life. Try to choose products produced recently. 4. Sensory evaluation shows that a normal candy should have (1) uniform color, pure and moderate aroma, normal taste, and peculiar odor, in line with the expected color and aroma of the product; (2) No visible impurities, no bubbles, no deliquescence, no paper sticking, tightly packed paper, no breakage or packaging phenomenon; (3) Half soft candy containing nuts, peanut kernels, etc., without sourness, insect infestation, or mold; Soft candy has elasticity and no melting or sticking phenomenon. 5. The surface of chocolate candy is smooth and delicate, without any whitening, moldy or burnt taste.

With the upgrading of consumption, traditional foods are becoming more and more healthy, and candies have also begun to upgrade in the direction of health. At present, the entire candy industry is trying to find new breakthroughs in creativity such as function, vegetarian nutrition, and sugar reduction, which has also become a key part of the innovation trend of the candy industry. Functional sugar In the candy category, functionality is a very potential development direction, although the market share of functional candy in the current market is small, but its health efficacy is still a benefit growth point that cannot be ignored. According to data from the China Business Industry Research Institute, the domestic sales market of functional candy has grown significantly, and it is expected that the functional sugar market will exceed 8.6 billion yuan in 2022. According to NBJ data, it took just 4 years (2014-2018) for functional confectionery to double global sales. Among functional candies, gummy candy is especially popular. Tmall's consumption data shows that in 2020, functional gummies will become the fast-growing consumer dosage form of health care products among young groups such as the post-90s and Generation Z. At present, there are vitamins and minerals on the market, such as vitamin and mineral supplement gummies, DHA gummies, yeast zinc gummies, probiotic gummies, melatonin gummies, collagen gummies and other products. The launch of functional candy is an extension of traditional candy brands to high-end product categories, and it is a high-level and multi-level demand for candy products by consumers. Sugar-free candy With the increasing expansion of people's health needs, the trend of "low sugar and no sugar" has hit, so consumers have also put forward demands for candy products - not only nutritious and healthy, but also less sugar. In the context of sugar reduction becoming a global trend, the daily demand for traditional sweets is gradually decreasing. According to the "2019-2023 Candy Industry In-depth Market Research and Investment Strategy Recommendation Report", in 2017, our country's candy output was 3.31 million tons, down 6.0% from 3.52 million tons in 2016; In 2018, our country's candy production fell to 2.88 million tons, a year-on-year decrease of 13.0%, and the decline was further increased. To this end, many companies have launched sugar-free lollipops, such as Dr. Xu Fuji Xiong sugar-free lollipops, Three Squirrels and Deer Blue Blue Sugar-free Lollipops, Sugar Cube Sugar-free Lollipops, etc. The development of sugar-free candy is worth looking forward to. Vegan sweets The plant-based proposition is another significant consumer trend in the confectionery market. The data shows that from 2016 to 2020, the compound annual growth rate of confectionery products claiming vegan was 17%, while the compound annual growth rate of confectionery products claiming plant-based products more than doubled last year. Confectionery manufacturers are removing ingredients such as dairy, gelatin, and carmine to meet the growing demand for plant-based products, which are not only healthier but also more ethical and sustainable. For example, Canadian candy brand Yumy Bear's low-sugar vegan gummies use plant-based ingredients instead of gelatin. In recent years, with the diversification of consumers' health demands, a number of candy manufacturers have regarded the research and development of new products that meet consumer needs as their top priority, and a steady stream of innovative products has injected new vitality into the candy market. Riding on the "healthy" train, the confectionery industry is moving forward slowly.