Sales of daily necessities fell in China last year, a worrying sign for an economy relying on increased consumption to take up the slack for a slowdown in investment and exports.
Fast-moving consumer goods sales to urban consumers fell 0.9 per cent year-on-year in volume terms, down from 0.1 per cent growth in 2014, according to a study by Bain & Company and Kantar Worldpanel. In value terms, FMCG sales grew 3.5 per cent, down from 5.4 per cent in 2014.
The report tracked trends in sales of packaged foods, beverages, personal care and home care goods, which together account for 80 per cent of sales of fast-moving consumer goods. Products aimed at blue-collar workers were hardest hit, with sales of instant noodles down 12.5 per cent and beer sales slipping 3.6 per cent in value terms. Sales of “value beer” fell more sharply than high-end brews.