March 11, 2015
The Ferraro Group, which operates 20 plants worldwide, including ones in India, Russia, and Australia, has targeted China as a strategic market for growth, and is planning the construction of its first manufacturing facility in the country.
In 2014 Ferraro increased its market share in China to tie with Hershey at 12%, and is positioning to put pressure on the market leader, Mars, which currently controls 39% of the market.
Local news outlets report that Ferraro will invest US$160 million to build a factory in Xiaoshan that will have the capacity to produce 30,000 tons of chocolate and candy per year.
The Chinese market is promising for confectionary companies, based highly on the culture’s practice of gift giving. Over the next five years Euromonitor expects a further $1 billion in sales for the sector, representing a compounded annual growth rate (CAGR) of 7%.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service
Let GAI News inform your engagement in the agriculture sector.
GAI News provides crucial and timely news and insight to help you stay ahead of critical agricultural trends through free delivery of two weekly newsletters, Ag Investing Weekly and AgTech Intel.