Mars Wrigley bets on Asia’s chocolate boom

The US company expects the region’s rising middle class to eat more M&M’s and Snickers.

Mars Wrigley is counting on the rising middle class in Asia, including the Philippines, Vietnam, and Indonesia as it seeks to double the annual revenue of its snacking division to $36b in the next decade.

The world's biggest maker of chocolate, chewing gum, mints, and fruity confections is adapting to the unique needs of the Asian market as a key strategy, Kalpesh Parmar, general manager at Mars Wrigley Asia, told Retail Asia.

“Succeeding in Asia means acknowledging there is no one-size-fits-all approach,” he said. “For Mars to succeed, we need to remain deeply consumer-obsessed, tailoring our strategies to meet the unique needs of each market.”

For example, the US-based company, which makes  M&M’s, Snickers, Orbit and Skittles, has introduced “smaller packs of happiness” in Southeast Asia, whose chocolate consumption is lower than Europe and North America.

Asia’s confectionery market is projected to grow 5.6% annually to $213b by 2029, according to German online data platform Statista. Most of the region’s $201.8b revenue in 2024 is generated in China at $84b.

Parmar cited Asia’s growing middle class, many of whom have yet to experience international brands. “There is huge potential for us to increase our penetration in these markets to make our brands a household name.”

He noted that Asia, which is home to 60% of the world’s population, presents significant growth opportunities for the group, whose chocolates are enjoyed in more than 180 countries. Mars Wrigley’s Asia business is spread across 20 markets (excluding China, Japan, and India), with South Korea, Hong Kong, Taiwan, Malaysia, Thailand, Vietnam, the Philippines, and Indonesia as key growth markets.

As disposable incomes rise, consumers are expected to increase their basket sizes, making it vital for Mars Wrigley to offer products that resonate with local tastes.

“Our sales have been largely fueled by our chocolate, fruity confectionery, and pet product categories,” he said. "Whilst we are in a healthy financial state, we have a key opportunity to further expand market share through volume-driven strategies across the region.”

Parmar said their “right size, right price” approach makes their chocolates appealing to many people.

Mars Wrigley is also adapting to the rising health consciousness amongst consumers. More than 58% of Asians prioritise physical and emotional health, prompting the company to introduce healthier options such as half-sugar dark chocolate Snickers and KIND bars with fewer than 200 calories, he said.

The chocolate maker is also banking on e-commerce to drive growth, Parmar said, citing partnerships with online platforms like FoodPanda, Grab and TikTok.

The rise of digital transactions is reshaping the retail landscape in Asia, where 70% of transactions will have become digital by 2027. “This spurs us to continue to innovate as we digitise our business. We see this as a growth opportunity and are fully embracing the digital future,” Parmar said.

Fast delivery channels have likewise become increasingly important, especially in markets where traditional impulse-buying avenues are less prevalent. Traditional retail outlets have also adapted to the digital age by serving as collection points for online orders, he pointed out.

Mars Wrigley plans to reinvest more than 90% of its profits back into the business, as it continues to improve product quality sustainability,  he added.