China’s Fast Moving Consumer Goods (FMCG) market has seen a sharp growth in recent years, with total market value at approximately USD 861.11 billion in 2022. Despite the challenges presented by the COVID-19 pandemic, the FMCG market in China was able to thrive. As such, China is one of the top export destinations for Malaysian FMCG brands. Malaysia has recorded a strong trade performance with China over the past decade, and exports has grown steadily despite the trade conflict and pandemic.

With a population of 1.4 billion, China is able to provide a huge market to the world. According to research compiled by MATRADE, 15 percent of the China population (240 million population) has a high purchasing power, particularly towards imported and high-quality products. The implementation of the three-child policy has also changed buying habits, and consumers are more willing to spend more money for imported and high-quality products for their children.

There are four main segments in the China FMCG market, which includes packaged food, beverage, home care and personal care. The changing consumer needs and trends have led to a demand for packaged foods and home care products, while beverage and personal care products have experienced a drop in demand. Aside from that, there is a growing demand for healthy products such as cereals, muesli, granola and juices, as well as plant-based alternative meats and drinks.

The Chinese e-commerce retail market is by far the largest in the world, with a penetration rate of nearly 80 percent. These platforms have a large consumer base and are a powerful tool for digital marketing. Moreover, many Chinese e-commerce platforms allow Malaysian FMCG brands to sell directly online via Cross-border E-Commerce (CBEC) without establishing a legal presence in the country.

Malaysian FMCG brands who are interested in entering the China FMCG market can reach out to MATRADE for enquiries and assistance.

For enquiries, please contact:

MATRADE Beijing
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T: +86-10-8451 5109

MATRADE Chengdu
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T: +86 28 6687 7517

MATRADE Guangzhou
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T: +86-20-3877 3865

MATRADE Shanghai
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T: +86-21-6289 4467

References
Matrade Webinar (Exploring Business Opportunities in China's FMCG Sector)