China's market for fast-moving consumer goods (FMCG) for at-home consumption remained robust in 2018, despite general concerns about a slowdown. Total spending on FMCG rose 5.2%, a slight increase over last year's 4.7% gain. Overall, the two-speed growth scenario Kantar identified in 2016 has continued to evolve, with home care and personal care categories growing at a fast clip while food and beverages maintain a slower pace.
Personal care categories showed the healthiest gains, growing by 10.3% compared with 10.1% in 2017. Premiumization was a big factor in that stellar performance: Average selling prices (ASP) rose by 9.8% as consumers demonstrated a willingness to trade up. Home care categories delivered strong growth of 7.2%, a rebound from their 3%–4% annual growth rate between 2014 and 2017. In home care, it was volume growth, not price increases, that led to the gains.
In the food sector, categories with perceived health benefits, such as nutrient supplements, led the...
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