---
title: "AC Nielsen's Authoritative Preview: 2016 FMCG Market Trends"
description: "Nielsen's latest '2016 China FMCG Forecast Report' shows that in 2016, China's fast-moving consumer goods (FMCG) market sales growth will be slightly faster than in 2015, with the trend of consumption upgrading continuing as consumers prefer high-quality products, especially those beneficial to health. Additionally, as consumers demand greater convenience, small retail stores and convenience stores will further drive FMCG sales growth. Similarly, in the skincare market, premium products such as moisturizers and sunscreens are becoming key sales drivers..."
author: "AC尼尔森"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2016-01-05"
language: "en"
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# AC Nielsen's Authoritative Preview: 2016 FMCG Market Trends

> Nielsen's latest '2016 China FMCG Forecast Report' shows that in 2016, China's fast-moving consumer goods (FMCG) market sales growth will be slightly faster than in 2015, with the trend of consumption upgrading continuing as consumers prefer high-quality products, especially those beneficial to health. Additionally, as consumers demand greater convenience, small retail stores and convenience stores will further drive FMCG sales growth. Similarly, in the skincare market, premium products such as moisturizers and sunscreens are becoming key sales drivers...

Nielsen's latest '2016 China FMCG Forecast Report' shows that in 2016, China's fast-moving consumer goods (FMCG) market **sales growth will be slightly faster than in 2015**, with the trend of consumption upgrading continuing, as consumers prefer **high-quality products, especially those beneficial to health**. Additionally, as consumers **demand greater convenience**, small retail stores and convenience stores will further drive FMCG sales growth.
Similarly, in the skincare market, **premium products such as moisturizers and sunscreens are becoming key sales drivers**. Although sales volume grew less than 3% compared to the same period last year, total sales value increased impressively by 13%. Nielsen predicts that in 2016, as consumers **continue to seek premium, high-quality products**, sales value growth in these categories will again outpace volume growth.
Fan Yijin, General Manager of Nielsen China, commented: "**The proliferation of mobile internet enables consumers to instantly access product reviews and engage in social discussions**, allowing them to quickly understand product quality and value. Therefore, **pursuing premium, high-quality daily necessities has become the 'new normal'**, which will drive growth in the FMCG market."
When Chinese consumers **purchase food and beverages for their families**, they also seek premium and high-quality products—**health and safety are their primary considerations**, so in 2015, consumer demand for healthy functional drinks and all-natural foods continued to grow.
Nielsen research indicates that in 2015, China's beverage market showed **stable, modest growth**, with an increase of nearly 1% compared to 2014. However, consumers are increasingly demanding more from beverages, providing opportunities for innovative manufacturers producing functional drinks. Juice also holds similar appeal as a healthy, natural choice. Nielsen's 2015 data shows that compared to the same period last year, functional drinks grew by 7.6% and juice by 4.7%.
"**Products focusing on natural and healthy attributes are highly aligned with current consumer needs**," Fan said. "Consumers want a healthy lifestyle and pay close attention to food safety. Meanwhile, the emerging middle class is more willing to choose premium products for health and safety reasons. This trend is very evident in the 2016 forecast data."
**Convenience is another important factor shaping China's rapidly changing FMCG retail landscape.** Nielsen's retail research data shows that consumers are currently spending more at small retail stores and chain convenience stores, while reducing visits to hypermarkets and supermarkets. In 2015, the chain convenience store channel contributed approximately 9% to FMCG sales growth.
This trend is evident across most FMCG categories. In the convenience store channel, household cleaning products **grew by as much as 11%**, but in the hypermarket channel they **declined by 4%**; food and instant noodles **grew by over 6%** in convenience stores, but **fell by nearly 12%** in hypermarkets. Nielsen expects small-format channels to become even more important, and the 2016 sales forecast aligns with this trend.
According to Nielsen's forecast of market size and sales data for 2016, the overall FMCG market will continue its stable growth; however, with consumption upgrading and consumer pursuit of premium new products, major brands will see sales value grow faster than volume in many categories. **In 2016, in the convenience store channel alone, facial cleanser sales value will grow by 14%, while volume growth will be only 7%.** Growth will be strongest in non-food categories, as consumers purchase more expensive, higher-quality daily necessities. The forecast data highlights the growing trend of Chinese consumers' spending power and demand for innovative products. For food categories, this means safer, more natural, and healthier products will further drive sales growth. **The yogurt category, benefiting from the health and natural trend, is expected to achieve double-digit growth in 2016.**
In terms of retail channels, Nielsen's '2016 China FMCG Forecast Report' **indicates that consumers' high demand for convenience will continue**, with their spending shifting further from large stores such as hypermarkets to relatively smaller retail channels. **This trend is particularly prominent even in household daily necessities, with growth in the convenience store channel expected to reach 9.8 percentage points in 2016.** For manufacturers aiming to win in the 2016 market and achieve leapfrog development, accurately understanding China's retail landscape to respond more effectively to consumer needs will be of paramount importance.
For more information on the **'2016 China FMCG Forecast Report'**
Please contact: Jessi.Chen@nielsen.com
+862123269658
**-END-**
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