Why is Jinjiang known as the "Candy Capital of China"?

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1. The Understated Candy Capital

Jinjiang is a land full of charm and miracles.

According to the Jinjiang Bureau of Statistics, in 2023, the city's GDP reached 336.35 billion yuan, marking a 6.5% increase over the previous year based on constant prices. In the same year, Jinjiang's total retail sales of consumer goods climbed to 175.41 billion yuan, up by 5.1%, maintaining its lead among county-level markets nationwide.

Since China's economic reform and opening-up, Fujian has capitalized on its quality trade ports to spawn a multitude of township enterprises, especially around Jinjiang, famously described as "every family runs a factory, every household emits smoke." This entrepreneurial spirit kickstarted the food industry in Jinjiang.

It's understood that the snack food industry is Jinjiang’s third major industry cluster worth over a hundred billion yuan, following footwear and textiles. The products include a variety of candies, jellies, puffed foods, and baked goods, constituting hundreds of types. This sector accounts for more than 50% of Fujian's total food industry output, with candy production alone comprising about 25% of the national output and 90% of Fujian's. Jelly production ranks second among China’s main food production regions.

Indeed, as early as 2014, Jinjiang's export of snack foods surpassed one billion US dollars for the first time, establishing a prominent presence on the global stage and marking a new milestone for the industry.

When discussing Jinjiang, one must certainly mention its candy.

Jinjiang is one of the top three white sugar markets in the nation, and its candy industry holds a pivotal, leading position in the domestic market. A popular local saying goes, "Biscuits come from Longhai; candy comes from Jinjiang."

2. Jinjiang Candies: Supporting a Billion-Dollar Market

According to the "2023-2029 China Confectionery Industry Development Strategy Planning and Investment Direction Research Report," recent years have seen Fujian province accounting for 29.7% of China's candy production and sales, with Jinjiang leading the charge, providing a significant supply of confectionery products.

Jinjiang's household names like Yake, Panpan, QinQin, Qifeng, Jiujiuwang, Clever Mama, and widely acclaimed brands like Crayon Shin-chan Snacks, Gold Crown, Good Neighbor, Xiduoduo, Maidehao, Haocaitou, and China Candy have deeply integrated into people's lives.

The rise of these Jinjiang brands has also brought trendsetting blockbuster products to the entire consumer market.

Founded in 1999, Jiujiuwang, located in the food processing "tribe" of Luoshan Town in Jinjiang, mainly produces and sells sweet products including gummy candies, compressed candies, aerated candies, and hard candies. Well-known childhood favorites like xylitol, refreshing strips, chewing gum, and bubble gum all feature Jiujiuwang products.

In March 2021, Jiujiuwang was officially listed on the Main Board of the Hong Kong Joint Stock Exchange. Its own brands like Coolsha, Lalabu, and Jiujiuwang not only dominate the domestic breath-freshening food market but are also exported to Southeast Asia, Europe, America, and Africa. The brand's contribution to revenue has steadily increased, with a gross margin higher than that of OEM products.

In 1993, the Yake Group was established on the entrepreneurial soil of Jinjiang. In 2003, Yake V9 was launched, quickly becoming a favorite among young consumers for vitamin supplementation and achieving a marketing miracle with annual sales of 300 million yuan. It not only ushered in a new era for vitamin candies but also elevated the Yake brand to new heights.

Yake's xylitol tooth-friendly gum has also achieved success in the chewing gum market, breaking the monopoly of foreign brands in China's gelatin candy market. Other Yake sub-brands like VQ, Youmiao, Nongdian, and Meijuo have also gained market attention, forming a mainstream brand matrix in China's candy industry.

Also founded in 1993 and based in Jinjiang, Qifeng Food excels in candy production technology, boasting more than 20 modern production lines for gel jellies, butter hard candies, hard candies, milk candies, and liquid candies. Leveraging its innovative processes and production capabilities, Qifeng has launched a wide range of candy products that are popular both domestically and internationally.

In addition to its renowned starch jellies and intestine-coated jellies, Qifeng's VC fresh juice soft candies and hard candy series are also favored for their high quality, pure taste, and innovative packaging.

Golden Crown Group - Brown Sugar Plum Lollipop

Established in 1982, the Gold Crown Group has made a name for itself with "Gold Crown Black Sugar Plum Candy," a unique flavor that has won approval both domestically and internationally, inspiring many manufacturers to emulate it and creating a new category of leisure sweets. Gold Crown has become synonymous with black sugar plum candy, forging a large market in innovative candies.

Gold Crown has thousands of national distributors, with sales channels covering major global Fortune 500 retailers like Tesco, Walmart, CR Vanguard, Carrefour, and Yonghui Superstores, and exporting to over 30 countries and regions. The Gold Crown brand is not only well-known in Greater China but also in Southeast Asia, Central Asia, the Middle East, and the Americas. According to industry authoritative statistics, Gold Crown Group's annual output value and overall competitiveness have been among the top in the industry for nearly a decade.

Beyond traditional candies, Jinjiang also excels in jelly products. Top jelly enterprises/brands like QinQin Food, Crayon Shin-chan, and Clever Mama hold undeniable market positions, innovatively engaging young consumers with jelly pudding categories and achieving significant sales in their main product segments.

3. How to Keep the "Sweetness" Going?

"Originating in the Han and Tang dynasties, flourishing during the Song and Yuan dynasties; continuing through the Ming, diminishing in the late Qing; revitalized by opening up, thriving today." The footsteps of Fujian entrepreneurs span across time.

With a deeply ingrained knack for business, the people of Jinjiang have grown their ventures to significant sizes, influencing markets nationwide and worldwide, with an increasingly diverse range of offerings blooming like a hundred flowers.

Today, looking at Jinjiang's business landscape reveals that Jinjiang food products have expanded beyond just the well-known candies and jellies to include baking, beverages, freeze-dried products, braised goods, and condiments.

From Jinjiang’s perspective, looking out over the national market, local food enterprises are pushing forward in two main directions:

First, stepping up the bulk snack channels. Over the past year, changes in bulk snack channels have undoubtedly been one of the biggest challenges in the food industry, reflecting shifts in consumer groups, demands, and needs. Amid these channel transformations stirred by capital and market dynamics, Jinjiang food enterprises are facing challenges head-on, seeking new breakthroughs for growth.

For instance, Qifeng Food, which has a noteworthy channel strategy, provided some figures. In its current channel structure, offline traditional channels account for 50% of the market share, bulk snack channels make up 30%, and online contributions are relatively smaller, about 10%. The full-channel strategy has built a dense sales network for Qifeng, driving nationwide sales of its products.

As Lin Jingchang of Qifeng Food explained, in 2023, their market sales grew by 23%, mainly driven by the bulk snack chain system. It’s estimated that Qifeng's sales in retail chain systems reached between 80 to 90 million yuan last year.

Like Qifeng, other local enterprises such as Crayon Shin-chan Snacks, Xiduoduo, Jiujiuwang, Yole Yishi, and Quanlitang have also savored the "sweet" growth brought by the bulk snack channels. Leveraging their product, capital, and market advantages to explore channels is how Jinjiang food enterprises are trying to maintain autonomy amidst channel transformations.

Second, pushing into more categories. In recent years, with consumer upgrades and channel transformations, the Jinjiang food industry, backed by a solid industrial base and prior experience, has embarked on a new phase of restructuring. It has ventured into baking, beverages, freeze-dried foods, braised products, plant-based meats, and complex condiments, aiming for breakthroughs in these fields to gain advantages in new areas.

Panpan Food has established three provincial-level technology centers, collaborating closely with over thirty universities and research institutions, including the German Food Research Institute and the Chinese Food Science Society, focusing on beverages, dairy products, and instant foods.

Panpan is just one example of the broader Jinjiang snack food industry. Many companies, including QinQin, Licheng, and Qifeng, are introducing new products and expanding production capacities, achieving counter-trend growth in business performance.

QinQin Food raised prices on some products in the second half of 2023, continuously optimizing its product mix and sales strategies, and focusing on expanding and marketing new products like "Potato Chips" and the "QinQin Ring" series. Qifeng Food has introduced Japanese manufacturing processes and equipment, producing agar pearls using natural algae extracts like agar and carrageenan. Yake Food has shifted its focus away from traditional candies to concentrate on "Yake Changbai Spring" and "Zhibao Health Products." Sanyuan Food has added production lines for curry and ketchup, enhancing Jinjiang food's competitiveness in complex condiments...

It is evident that Jinjiang's food industry is gradually evolving from snack foods to a comprehensive food industry, expanding into multi-billion markets like beverages, instant foods, complex condiments, freeze-dried fruits, and children's snacks, and is increasingly forming a local industry chain advantage.

"Jinjiang, nestled between Eastern and Southern China, holds a strategic geographical advantage. It can extend northward to the Yangtze River Delta and southward to expand into the Pearl River Delta market. However, this advantage alone is not sufficient to sustain its long-term development. It is advisable to increase investments in infrastructure and bolster the allocation of R&D personnel," stated Zhu Danpeng, a Chinese food industry analyst.

Interestingly, the entire industry shares high expectations for Jinjiang's food sector. There's a collective hope that Jinjiang brands will continue to flourish widely, showcase the strength of domestic products, and continuously empower the consumer market.

"Three parts fate, seven parts effort," sings the well-known song "You Must Fight to Win," capturing the boldness and vision of Jinjiang's people. With their daring and enterprising spirit, the people of Jinjiang are facing the sea and charging towards the future.