Rebound of fast-moving consumer goods expected to benefit SMEs

The fast-moving consumer goods (FMCG) sector is expected to rebound next year in the Asia-Pacific region as the economy gradually picks up, providing good opportunities for Chinese small and medium-sized enterprises to venture abroad, experts said.

Dzung Nguyen, managing director of NielsenIQ's Asia Pacific emerging business segment, said: "We believe the buying power will be gradually back to the market as the economic situation improves. Now is good timing for Chinese small and medium enterprises (SMEs) to expand to overseas FMCG markets in the Asia-Pacific region." NielsenIQ is one of the world's leading consumer intelligence companies.

He said China's strong supply chain is the striking advantage for the country's SMEs to go global.

Statistics from the Ministry of Commerce show that China's FMCG's market scale is expected to reach 4 trillion yuan ($548 million) this year, accounting for 25 percent of the overall consumption. It said the sector is expected to continue to grow, with the annual growth rate expected to be higher than 10 percent in the coming five years.

Joyce Zhao, NielsenIQ's China emerging business segment lead, said the sales of ready-to-drink alcohol jumped 55 percent year-on-year so far in 2023 in China, and sales of snacks such as jelly and ready-to-drink tea also saw rapid growth.

Nguyen said such situation showed that Chinese SMEs are more flexible and can make changes quickly to grasp new opportunities.