The report said that of the 27 food, beverage and non-food categories in China, 23 posted positive growth in sales, including 13 with double-digit growth.

Yogurt and yogurt drinks topped the fastest growing category list with a 39 percent growth, followed by instant coffee with a 37 percent growth and baby cereal with a 23 percent growth.

Alistair Watts, Managing Director of AC Nielsen China, attributed the growth to strong consumer confidence and the rapid expansion of retail outlets, including supermarkets, hypermarkets, department stores and convenience stores. In 2000 about 4.6 million retail outlets in Chinese towns and cities sold Fast Moving Consumer Goods (FMCG), up 10 percent over the previous year, according to the report.

The report indicated that domestic brands enjoy strong competitive power. For instance, local brands frequently appear among the top five brands in health and personal care categories, surpassing their foreign rivals in market share.

Watts predicted that local manufacturers would gain more market share in the Chinese market in the future.

AC Nielsen is the world's leading marketing information company offering services in more than 100 countries. It has been monitoring China's retail market for over 10 years.

(Xinhua News Agency July 29, 2002)