China Shopper Report 2023, Vol. 2
China’s fast moving consumer goods (FMCG) sector observed a soft recovery during the first nine months of 2023, with health, value and exclusive products witnessing rising interest, according to the 12th China Shopper Report 2023 Vol. 2 released today by Kantar Worldpanel and Bain & Company.
The overall growth of China’s FMCG industry was modest at 1%, a result of a 1.2% increase in volume. The FMCG market exhibited diverse performance in the third quarter of 2023 compared to the previous year, primarily due to the 2022 baseline. In the third quarter of 2022, China saw a notable recovery with a 6% growth rate after the easing of COVID-19 lockdowns. This set a high benchmark for 2023, resulting in a challenging comparison and a slight decrease of 0.9% in the same quarter this year.
“There are signs of hope. In the first four weeks post Q3, we saw a noteworthy increase of 5% in value, aided by a resurgence in consumer demand due to heightened holiday spending. Although the increased expenditure during this period was not counted in our data, it suggests an overall continuing expansion of the FMCG market,” said Bruno Lannes, a partner at Bain & Company based in Shanghai.
Furthermore, while growth in the FMCG sector appears moderate, this does not necessarily signify a decrease in overall consumer spending. Instead, there may be a reallocation of expenditure towards sectors such as dining out and travel, reflecting a post-pandemic shift in consumer priorities.
Jason Yu
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Managing Director of Kantar Worldpanel in Greater China