A recent article in the Economist pulls together CPG industry data to produce an interesting snapshot of the emerging consumer class in China.
The authors found consumer tastes in China are changing as the country's economy shifts from one predicated on industry to a more service-driven model. As the ranks of blue-collar workers shrink, the growing urban middle class is seeking out more premium goods and brands. For example, the sales volume for instant noodles - long an indicator of consumer growth - fell by 12% last year, while sales of makeup grew by over 15% and skin care products went up by 13%. Some other consumer trends include:
- Chinese travelers are taking more trips abroad, spending about $1,200 each time on shopping;
- Chinese tourists return home with a taste for cosmetics brands based in South Korea, whose cosmetics exports to China surged by 250% last year;
- Brands promoting healthy lifestyles are also thriving, including restaurants and supermarkets. As well, fitness is becoming more popular;
- Functional drinks favored by the health-conscious are going down well, as is yogurt and soup that's MSG-free; and
- Sales of pet food rose by nearly 12% in 2015, a reflection of a softening of Chinese attitudes toward animals.
These trends can give us insight into the evolution of the consumer goods marketplace as more people in the middle of the economic diamond enter the consumer class.