Core Insights - The report indicates that the Chinese fast-moving consumer goods (FMCG) market is stabilizing in 2025 after a flat performance in 2024, with a year-on-year sales growth of 1.3% in the first three quarters, driven by a 3.8% increase in volume, while average prices decreased by 2.4% [1][16] - Consumer preferences are evolving, with a greater emphasis on cost-effectiveness, convenience, and experience, necessitating brands to accurately understand consumer shopping triggers and scenarios to maintain competitive advantages [3] Market Dynamics - Nearly 80% of the growth in the FMCG market in the first three quarters of 2025 came from third to fifth-tier cities, where sales volume increased by 4-6%, offsetting a 2-3% decline in average prices [4] - The ongoing urbanization, stable local consumption, and accelerated market penetration by brands and retailers are driving the rise of lower-tier markets [4] - New retail formats such as snack stores and community supermarkets, along with O2O delivery platforms, are providing efficient consumer access and becoming key growth drivers [4] Category Performance - Among the four main FMCG categories, packaged foods saw the fastest growth, with overall sales increasing by 3.4%, driven by stable demand for core staple foods and snacks [7] - Household care products grew by 3.3%, while personal care and beverage categories saw modest growth of 1.1% and a decline of 1.1%, respectively [7] - The report highlights a polarized market trend, with healthy juice products experiencing a 19.2% sales increase, while milk and yogurt faced declines of 6.4% and 5.8% due to oversupply and intense price competition [7] Channel Dynamics - Emerging retail channels such as warehouse membership stores, snack stores, and discount stores are rapidly expanding, with growth rates of 40%, 51%, and 92%, respectively, reflecting consumer preference for higher cost-performance and convenience [8] - Instant retail O2O channels reversed last year's decline with a 7.9% year-on-year growth in the third quarter, driven by the popularity of delivery services and increased product variety [8] - Social e-commerce platforms like Douyin and Pinduoduo are gaining market share, collectively accounting for over 40% of FMCG e-commerce sales, integrating shopping experiences seamlessly [8] Strategic Framework - Bain introduced the "C.O.R.E." strategic framework to assist brands in achieving sustainable growth driven by demand, focusing on understanding demand systems, product offerings, channel routes, and execution [12][13][14] - Retailers are increasingly acting as brand creators, with private label brands experiencing an average annual growth of 44% over the past two years, now accounting for 2% of total FMCG sales [11]

Core Insights - The report indicates that the Chinese fast-moving consumer goods (FMCG) market is stabilizing in 2025 after a flat performance in 2024, with a year-on-year sales growth of 1.3% in the first three quarters, driven by a 3.8% increase in volume, while average prices decreased by 2.4% [3][4] - The growth in the FMCG market is primarily attributed to lower-tier cities, which accounted for nearly 80% of the growth, with sales in these markets increasing by 4-6% year-on-year [4][7] - The report highlights a shift in consumer behavior towards valuing quality and price-performance ratio over merely seeking low prices, indicating a structural adjustment in the market [3][4] Market Dynamics - The packaging food category experienced the fastest growth, with an overall sales increase of 3.4%, driven by stable demand for core staple foods and snacks [8] - Household care products saw a sales increase of 3.3%, attributed to stable cleaning habits and innovative products, while personal care grew by 1.1% [8] - Beverage sales declined by 1.1%, influenced by intensified competition and the impact of ready-to-drink beverages [8][9] Channel Trends - New retail formats such as warehouse membership stores, snack collection stores, and discount stores are rapidly expanding, with growth rates of 40%, 51%, and 92% respectively, reflecting consumer preference for high cost-performance and convenience [10] - Instant retail O2O channels reversed last year's decline, showing a year-on-year growth of 7.9% in the third quarter, driven by the popularity of delivery services and increased product variety [10] - E-commerce channels, particularly social e-commerce and platforms emphasizing cost-performance, continue to gain market share, with Douyin and Pinduoduo together accounting for over 40% of FMCG e-commerce sales [13] Strategic Recommendations - The report suggests that retailers are increasingly taking on roles traditionally held by brand manufacturers, accelerating the development of private labels, which have seen an average annual growth of 44% over the past two years [14] - The "C.O.R.E." strategic framework proposed by Bain aims to help brand manufacturers achieve sustainable growth by focusing on demand systems, product offerings, channel routes, and execution [14][15] - Brands must redefine their relationships with retailers and platforms, viewing each channel as an ecosystem for innovation and value co-creation to seize opportunities in the evolving FMCG market [14][15]