BUSINESS

Deflation Weighs on China’s Fast-Moving Consumer Goods Market

Published: Jun. 17, 2026 6:57 p.m. GMT+8

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China’s fast-moving consumer goods (FMCG) market saw modest growth in sales volume in 2025 as shoppers bought more items but paid lower prices, according to a new industry report.

Last year, total FMCG spending in urban China increased 0.9%, supported by 3.6% volume growth and offset by a 2.6% decline in average selling price (ASP), according to the China Shopper Report 2026, jointly released Tuesday by consulting firm Bain & Co. and Worldpanel by Numerator.

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China's urban FMCG spending grew 0.9% in 2025, with 3.6% volume growth offset by a 2.6% decline in average selling price.
Lower-tier cities (tier 4-5) became growth engines, posting 1.2% and 2.9% value growth, while tier 1 cities saw low or negative growth.
Private-label products reached 2% of total urban FMCG sales in 2025, with Aldi at 90% and Sam's Club, Costco, Hema at 35-41%.

AI generated, for reference only

Bain & Co.: Bain & Co. is a consulting firm that, alongside Worldpanel by Numerator, jointly released the China Shopper Report 2026. The report analyzed China's urban FMCG market in 2025, noting modest value growth, volume increases, and declining average selling prices.

Numerator: Numerator, through its Worldpanel service, co-published the *China Shopper Report 2026* with Bain & Co. The report analyzes China's FMCG market trends. Li Rong, China general manager of Worldpanel by Numerator, noted that increased purchasing frequency drove volume growth and fragmented retail channels.

Aldi Grocery Stores: According to the article, Aldi Grocery Stores (奥乐齐) is highlighted as the most mature private-label model in China, with store brands accounting for about 90% of its sales in both 2024 and 2025. This makes private labels central to Aldi’s hard-discount proposition, distinguishing it from other retailers.

Sam's Club: According to the article, in 2025, Sam's Club had a high private-label sales share of around 38%, making it one of the retailers where store brands are central to their proposition. This highlights Sam's Club's strategic use of private labels to boost sales in China's FMCG market.

Costco: According to the article, Costco had a high private-label sales share of around 41% in 2025, positioning it as a membership club where store brands are strategically important for boosting sales in China's FMCG market.

Hema: Hema, a Chinese retail chain, achieved a private-label sales share of approximately 35% in 2025, according to the China Shopper Report 2026. This positions Hema alongside Sam’s Club and Costco in high private-label adoption, reflecting its role in offering value and differentiated products to consumers.

Yonghui: Yonghui, a Chinese supermarket chain, increased its private-label sales share from around 5% in 2024 to 8% in 2025. This growth reflects the rising traction of private labels in China's FMCG market, as retailers increasingly use store brands to boost sales and offer value to price-conscious consumers.

RT-Mart: In 2025, RT-Mart (大润发) increased its private-label sales share from around 3% in 2024 to about 4%. This reflects the retailer's growing focus on private-label products as a strategic tool to boost sales in China's increasingly value-conscious FMCG market.

Walmart: In 2025, Walmart's private-label sales share in urban China increased from around 11% to 13%, according to the China Shopper Report 2026. This growth highlights Walmart's strategic use of private labels amid rising consumer value-consciousness in China's FMCG market.

AI generated, for reference only