For the first time since Kantar started tracking China’s shopping behaviors six years ago, the rate of total value growth increased over the previous year, from 3.6% in 2016 to 4.3% in 2017. In many ways, the "two-speed" phenomenon still exists, but higher speeds are now more prevalent, driven by premiumization.
High-speed categories are steadily gaining more ground while many low-speed categories remain sluggish. This 4.3% growth is mostly the result of a 4% increase in average selling prices, which more than compensated for nearly stagnant overall volume growth.
Note: Kantar excluded cigarettes from total FMCG and slightly updated all category data in 2017, leading to minor changes when refreshed with previous years’ data
Sources: Kantar Worldpanel; Bain & Company
The dominating theme of this year is that value growth of FMCG has rebounded as China’s expanding middle class continues to seek out upgraded consumer goods that serve to improve health and elevate th...
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