China’s FMCG sustains rebound in Q1: report

Bain & Company reported a value growth of 1.9% in the first quarter of the year. 

China’s Fast-Moving Goods Products (FMCG) sector sustained its rebound as it recorded a 1.9% value growth in the first quarter of the year, a report found. 

Bain & Company linked this to the mild volume growth of 2.7%, offsetting the 0.8% decline in the average selling price (ASP). 

“We’re seeing signs of recovery and April data looked good. Consumers are gradually gaining confidence now that Covid restrictions have lifted,” the report read in part. 

Read more: Fashion firms in China spur growth with direct-to-consumer model

Bain & Company particularly observed that consumption in January was heavily affected by a COVID-19 outbreak. 

The FMCG sector started its growth trajectory in the month after, and whilst it may take some time, Bain & Company sees the sector is “tracking well” towards a full recovery. 

In April the FMCG sector growth rate hit 5.1%, which is in line with its pre-pandemic levels. 

“The industry’s recovery is likely to take shape over the coming months, repeating a few trends from the first quarter of 2023.”