While Mars is still sitting pretty as the current market leader in China’s chocolate confectionery market, the lead it has is being eaten into by Ferrero, who have been growing at an alarming rate over the last five years, with increased shares year-over-year, according to new Euromonitor data.
Some of Mars’ brands in China include Snickers, Maltesers, M&M’s and Dove, of which Dove in particular is very dominant as it accounts for a whopping 23.8% category share. However, despite their impressive figures, most of these brands are showing either relatively flat growth or slight decline over a period of time, according to the data.
For example, Dove owned 26.7% share of the entire Chinese confectionery category as recently as 2014. In 2015, this figure had dropped to 25.3%, and it dropped again in 2016 to 24.3%. 2017 figures have it at 23.8%, showing further decline.
Also according to Euromonitor, M&M’s had 7% of the category in 2014, however their decline has been significantly less, with it now being 6.8% in 2017.
Euromonitor analysts have pointed out that Mars’ business faces a host of challenges from “the shift of consumers to more premium products. Mars, whose brands are mainly positioned within the low/mid-priced range, lost half a percentage point of value share in 2017.
“Despite this slight share loss, Mars’ retail value sales saw slow growth in 2017, primarily derived from the expansion of M&M’s and Snickers, and the gradual sales recovery of Dove in this year (2017),” Euromonitor added.
On the other hand, Ferrero’s market share has increased every year since 2013, and this is mainly put down to the growth of Kinder Joy, so say Euromonitor.
There are four brands currently in operation by Ferrero China, including Kinder, Nutella, Ferrero Rocher and Raffaello. Euromonitor believe that Ferrero could even break into the sugar confectionery market in China, should they choose to bring newly acquired Ferrara with them.
Ferrero’s share is still only around half of Mars’ in China, but it has increased from 10.5% in 2013 to 14% in 2017. According to Euromonitor, Kinder Joy in particular fares very well, with a share of 6.5% in 2017 compared to 4% inn 2014.