China FMCG up 3.9% in the first 9 months
The latest Kantar Worldpanel China data reported a 6.1% increase in fast-moving consumer goods (FMCG) in urban China uplifted in the third quarter of 2022 from a year ago, indicating a steady recovery as the take-home grocery market moved out of the severe lockdown that impacted the second quarter.
The East region shows the biggest rebound with 9.0% growth, backed by stronger underlying consumer demand. In the first three quarters, the value growth of FMCG in China went up by 3.9% year-on-year.
The latest report also found that consumers are buying more products on each trip but are shopping less frequently, suggesting continued stockpiling behaviors amid concern over lockdown and mobility restriction.
Amongst different FMCG sectors, beverages enjoyed the highest year on year growth of 19.6% as the country was impacted by a severe heatwave in the summer. Ice cream remained popular for in-home consumption, with sales up 21.5% in the latest quarter. Dairy and personal care products also started to recover and record lower single digit growth from their lower level in Q2, as the dynamic zero-COVID policy gradually became the norm.
Modern trade competition becomes more fragmented, while expansion membership store formats moved to the next level
The performance of modern trade channels (including hypermarkets, supermarkets, and convenience stores) continues to diverge. The pandemic has had an on-going impact on offline store footfalls, with hypermarkets and large supermarkets declining by 1.9% and 1.8% respectively in Q3 from a year ago.
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Managing Director of Greater China