US chocolate and candy maker Hershey opened its Asia Innovation Center in Shanghai to tap the growing demand and cater to local tastes.
China is Hershey's fastest growing market with sales rising at a double-digit rate for a few years, said Steven Schiller, senior vice president of Hershey Company.
Schiller said the company is also looking for the next manufacturing site in Asia.
Chocolate sales totaled 12 billion yuan (US$1.95 billion) in China last year. The volume is luring many foreign brands to get a slice of the market.
Hershey's new Asia Innovation Center is expected to develop products tailor-made for Chinese palates and for consumers in other parts of the region.
Hershey currently has one factory in Shanghai which has been expanded to produce mint candies.