China’s FMCG market showed a modest recovery after Covid-19, with 2020 value growth reaching 0.5% and returning to near pre-pandemic levels, driven mainly by volume rather than price due to deflation. Food and home care grew as consumers stockpiled essentials, while beverages declined due to reduced social activity. Lower-tier cities led growth, and online channels, especially e-commerce and O2O, expanded rapidly. In 2021, recovery remained cautious, with continued reliance on volume and emerging habits such as health-focused consumption and digital purchasing. Long-term trends include sustained online adoption, rising demand for hygiene and wellness products, and increasing importance of localized strategies for brands and retailers.

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