China FMCG market grew at 5.2 per cent last year
The China FMCG market grew by 5.2 per cent last year, despite talk of an economic slowdown.
According to management consulting firm Bain & Company and consumer knowledge analysts Kantar Worldpanel FMCG remained robust last year, despite talk of economic slowdown.
The findings were revealed in their latest China Shopper Report, which showed the China FMCG market continued to rebound last year, growing slightly faster than the previous year’s 4.7 per cent – with premiumisation again playing a significant role in the sector’s recovery. Average selling prices rose by 4.6 per cent during the period as consumers continued to demonstrate a willingness to trade up.
Over the last eight years, Bain & Company and Kantar Worldpanel have tracked the shopping behaviors of Chinese consumers across 106 FMCG categories purchased for home consumption in China. The two-speed growth scenario the firm identified in 2016 has continued to evolve, with home care and personal care categories growing at a fast clip, while food and beverages maintain a slower pace.
“Amid the FMCG market’s recovery, we continue to see premiumisation playing an important role, as Chinese consumers favour goods that promise to improve their health and lifestyle,” said Bain’s Greater China Consumer Products Practice partner and co-author of the report Bruno Lannes. “While penetration and purchase frequency may be reaching their limits in some categories, there appears to be ample room for average selling prices to rise. The past two years of data on shopper behavior have shown that brands can still encourage trading up, giving a much needed boost to categories in which volume is either flat or slumping.”