The FMCG market increased steadily in the first quarter
The FMCG market increased steadily in the first quarter, and the expansion of discount formats accelerated.
The latest report released by Kantar Worldpanel shows that the fast-moving consumer goods (FMCG) market in urban China maintained a modest recovery in the first quarter of 2024, with a year-on-year sales growth of 2.6%.
The eastern region showed more positive growth, increasing by 7% compared to the same period last year, demonstrating the enhancement of the regional economic vitality and the strong resilience of consumer purchasing power.
Under the combined influence of the holiday effect and the gatherings of families, the consumption of alcohol and beverages at home showed a more significant growth in the past 12 weeks, whilst the dairy and personal care categories showed a relatively weak performance in the first quarter.
At the city level, the lower-tier market continues to be the engine of China's consumer market. With the strong recovery of population mobility and tourism, the consumption gap between lower-tier cities and upper-tier cities is continuously narrowing. Kantar Worldpanel reports that the sales in town markets in the first quarter increased by 3.9% compared to the same period last year, which is higher than the cities.
The latest data released by the National Bureau of Statistics also shows that the national economy continued to rebound, with the retail sales of consumer goods in urban areas increasing by 4.6% in the first quarter. Driven by the service retailing, the demand structure continues to improve.
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Jason Yu
Managing Director of Kantar Worldpanel in Greater China
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