Inside China’s FMCG slowdown and premium pivots

China’s FMCG sector sees muted growth as value-for-money preferences persist, but innovation-led premium products still carve out gains amid shifting channel dynamics.

• China’s FMCG market grew just 0.8% in 2024, with volume up 4.4% but average prices down 3.4%, reflecting a strong “value substitution” trend.

• Q1 2025 growth hit 2.7% YoY, driven by improved macro signals, policy support, and Lunar New Year consumption.

• Smaller cities (Tier 3–4) outpaced larger ones, unlocking new demand pools amid demographic shifts.