China Shopper Report 2024, Vol. 2
Offline channels outperformed market for first time since e-commerce inception
Report’s 10-year analysis show ‘repertoire’ and ‘loyalist’ behaviors remain but ‘repertoire’ shoppers have been buying more brands
China’s fast moving consumer goods (FMCG) growth has been decelerating over the first three quarters of 2024, according to the 13th China Shopper Report 2024 Vol. 2 released today by Kantar Worldpanel and Bain & Company.
For 2024 Q3 year-to-date (YTD), the average FMCG value growth of 0.8% was a result of a 4.6% increase in volume, coupled with a decline of 3.6% in average selling prices (ASP). Looking at the respective quarters, China’s FMCG grew at 2.0% in Q1, 1.6% in Q2, -1.1% in Q3, with a 3.5% decline in September alone.
“The growth deceleration in China’s FMCG is due to the ASP deflationary trend which we had identified since 2021. We are seeing the highest ASP decline since 2021, while the Consumer Price Index rose by 0.3% during the same period (i.e., 2024 Q3 YTD). The intensifying market competition and the escalating demand for value for money are the primary drivers behind this trend.”,” said Rachel Lee, General Manager of Kantar Worldpanel in China.
“FMCG’s performance lagged total retail sales, partly due to the country's pro-consumption policies aimed at durable goods. There has also been a continuous reallocation of consumer expenditure towards service sectors such as dining and travel, with retail sales in these areas experiencing a 6.7% increase during the first three quarters of 2024.”
Home care - the only segment that recorded positive growth across all three quarters
Within the four major FMCG sectors, home care led growth with an increase of 3.5% in 2024 Q3 YTD compared to the same period last year, closely followed by beverages at 3.3%. Packaged food experienced a moderate growth of 1.4%, while personal care saw a widened decline compared to 2023 Q3 YTD, reaching a similar level to that of 2022, with a decrease of 4.4%.
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Rachel Lee
General Manager of Kantar Worldpanel in China
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