According to a report in China Daily on February 5, 2026
As China’s Lunar New Year approaches, Nestle is ramping up production of its popular Hsu Fu Chi juice gummies to meet surging festive demand, signaling continued investment in the country’s growing snack sector.
On Feb. 2, Nestle unveiled a new 14,000-square-meter juice gummy production facility in Dongguan, Guangdong province, representing a 200 million yuan ($28.8 million) investment. The plant, equipped with fully automated production lines, is designed to produce 40 metric tons of juice gummies per day, leveraging AI and smart manufacturing technologies to optimize efficiency and sustainability.
The facility integrates advanced German technology, automated guided vehicles, robot-assisted material handling, unmanned forklifts, and a fully automated cleaning system. Nestle expects the upgrades to boost production capacity by 30%, increase efficiency by 20%, and reduce energy consumption by 15%.
“This expansion is more than just a capacity increase,” said Kais Marzouki, chairman and CEO of Nestle Greater China. “It demonstrates our commitment to China, our second-largest market, and how intelligent manufacturing can enhance the value chain while supporting local innovation and regional development.”
Nestle’s Hsu Fu Chi brand has become a key player in China’s fast-growing snack segment, particularly during the Lunar New Year period, when demand for festive sweets peaks. The company’s strategy combines smart production with local insights into consumer preferences, aiming to meet both traditional tastes and emerging trends toward healthier, functional snacks.
Research from Mintel Group highlights that younger consumers, families, and parents with children are driving the market, with preferences ranging from nostalgic flavors and holiday-limited editions to products with added nutritional benefits such as vitamins, probiotics, or reduced sugar.
Since 2020, Nestle has invested over 5 billion yuan in China, focusing on high-growth sectors including infant formula, snacks, and pet care. The full acquisition of Hsu Fu Chi in 2025 has enabled the company to leverage China’s industrial ecosystem, applying smart manufacturing and digital technologies to enhance product quality and operational efficiency.
“This investment illustrates how multinational companies can combine local market understanding with global expertise in production innovation,” said Liu Xinggang, president of Hsu Fu Chi. “It positions Nestle to meet evolving consumer demands while solidifying its leadership in the Chinese confectionery market.”