Statistics from the retail sector showed that after reaching a record growth rate (9.6%) in the first quarter, the expansion of the FMCG market slowed down to 5.8% during April-June. Notably, six main FMCG categories, including beverages, food, dairy, household care, personal care and cigarettes showed positive growth in the quarter.
Food and dairy sector grew 8.1%, home care 5.7%, beverage 5.4% and personal care 5.4%.
Beverage made largest contribution to the total FMCG sales in the period with 42%, followed by food (16%), cigarettes (15%) and dairy (14%).
Meanwhile, rural areas continue to be a promising land for manufacturers. Whilst urban growth stood at 5.1%, urban areas post a more rapid growth at 6.5%. Urbanisation, Internet access and the popularisation of smart phones have changed the lifestyle of rural consumers. They are willing to pay more for high-quality products.
In addition, improved consumer confidence and the development of consumer finance will be key drives to boost FMCG market in the last months of the year.