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The development trend of FMCG market in China



The past year has undoubtedly changed the world from here on out. Literally EVERYTHING has changed. One country in particular has seen more implementation of new health and sanitization standards than anyone else: China. China was ground zero for the Covid-19 pandemic. The virus was traced back to the province of Wuhan where health and safety standards were subpar compared to the rest of the industrialized world. This has brought on changes in almost every aspect of life. One thing China has seen progressing rapidly is the FMCG market, For those that don’t know, FMCG stands for Fast Moving Consumer Goods. Items that fall into this category include Milk, Fruits, Vegetables, soda, necessities such as toilet paper and sanitizing wipes, and more importantly, over the counter drugs. The top twenty two FMCG companies in China added 82 million customers in one year. Examples of the top FMCG companies include Yili, P&G, Coca Cola, and Nestle among others. The driving factor in the recent trade is the importance of health and wellness as well as accessibility. It was a overwhelmingly regular at the height of the pandemic to see empty shelves in the pharmacy section of most groceries. Supplements like Vitamin D, Zinc, and cough suppressants were nearly impossible to find. People were literally brawling in stores over toilet paper, Lysol spray, and Clorox wipes. Food was becoming a scarcity as well. Meat was being limited to individual households. Rice, beans, and vegetables were running low. Instant foods such as dehydrated ramen packs, cups of noodles, and canned pastas were a hot commodity. The ease of accessibility and longer shelf lives of perishable food container caused individuals to stock their households in case of self isolation and extended periods of quarantine. While much of the panic buying has slowed itself, the buying patterns remain consistent.

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