China's fast-moving consumer goods (FMCG) sector has grown by 5.3 percent in 2019, an industry report said.
The latest data from Kantar Worldpanel showed that spending on FMCGs in urban China grew by 5.3 percent in 2019, up by 0.2 percentage point compared to the previous year.
Packaged food consumed at home continued to see a slowdown in growth, reported at 3.1 percent in the fourth quarter of last year and 2.5 percent in the whole of 2019.
Categories with health and wellbeing benefits continue to outpace the market though.
Home-care and personal care categories maintained a strong performance, reporting 8 percent and 11.5 percent growth respectively in 2019, driven by the desire of younger consumers to upgrade their lifestyles.
The western region and prefecture level cities were up by 6.7 percent and 5.9 percent respectively.
Modern trade which includes hypermarkets, supermarkets, and convenience stores grew by 1.1 percent, 1.2 percentage points lower than in 2018, with hypermarkets and large supermarkets leading the slowdown in growth.
E-commerce continued to record a staggering 36.2 percent growth in FMCG, with 78 percent of Chinese urban families purchasing FMCG online at least once over the year with an average frequency of 14.5 times in the past one year.
Looking ahead, the report forecast big players to recover as they embrace digital transformation and diversify their operations model.