Domestic brands in China dominate segments from electric vehicles to electronic products to various everyday goods, but more shoppers are reaching for foreign competitors in specific categories including chocolate, infant formula, diapers and instant noodles.

In chocolate, Japanese brand Meiji gained market share last year based on a reputation for high quality and Japanese craftsmanship, according to a report released on Tuesday by consulting firm Bain & Co and market researcher Worldpanel by Numerator China. The company’s share of the market rose 0.7 percentage points, the report said.

Premium gifting demand continued to benefit brands like Swiss luxury chocolate maker Lindt & Spruengli, which gained 0.6 percentage points in market share in 2025, the report said.

“Foreign brands keep adjusting their competitive strategies, spending more time and resources to build brand strength and create new brand positioning suited to local consumption scenarios,” said Derek Deng, head of Bain & Co’s consumer products and retail practice in Greater China. “Many international brands have rolled out various related initiatives.”

China’s first bricks-and-mortar Lindt store, on downtown Shanghai’s Huaihai Middle Road, opened in April and exceeded sales expectations, according to the company, which also operates flagship stores on multiple e-commerce platforms.

The ketchup segment saw sales growth last year, largely driven by Heinz, which increased its market value in China by 31 per cent year on year. Penetration increased to 13 per cent from 11 per cent, owing to the company’s efforts to reposition the product as an ingredient in Chinese cooking rather than merely a Western-style dipping sauce.