Foreign brands have increased their market share in select Chinese consumer goods categories despite the continued dominance of domestic brands across many sectors, according to a recent report by consulting firm Bain & Co and market researcher Worldpanel by Numerator China.

In the chocolate segment, Japanese brand Meiji expanded its presence in 2025, gaining 0.7 percentage points of market share by leveraging its reputation for quality and craftsmanship. Similarly, premium chocolate brands such as Swiss luxury maker Lindt & Sprungli saw a 0.6 percentage point increase, supported by sustained demand for higher-end gifting products. Lindt opened its first physical store in Shanghai’s Huaihai Middle Road in April, surpassing sales expectations, while also maintaining flagship stores on multiple e-commerce platforms.

The ketchup market also experienced growth driven primarily by Heinz, which increased its market value in China by 31 percent year-on-year. Heinz successfully enhanced its penetration from 11 to 13 percent by repositioning ketchup as an ingredient compatible with Chinese cooking styles, rather than a Western-style condiment. Rachel Lee, general manager of Worldpanel, noted that Heinz’s efforts to adapt its product lines to local preferences were central to this expansion.

In categories more sensitive to safety and trust, such as infant milk formula and diapers, foreign brands also posted significant gains. Falling birth rates in China have intensified consumer scrutiny over product quality, benefiting multinational companies including Germany’s Aptamil and New Zealand’s A2 formula brands, as well as U.S. diaper labels Pampers and Huggies. These brands recorded market share increases ranging from 0.6 to 3.2 percentage points last year.

Nutritional supplements remain a stronghold for science-driven foreign brands like the U.S.-based Schiff Move Free and Australia’s Blackmores, which continue to command consumer confidence through product efficacy.

Despite these gains by foreign competitors, the overall consumer goods landscape in China saw domestic brands retain an advantage in most categories by blending competitive pricing, dependable quality, and rapid innovation. An exception to this trend was the instant noodles sector, where local brands lost 1.6 percentage points of market share. South Korean companies, including Samyang Foods, Ottogi, and Nongshim, led the foreign brands in capturing this market share.

Derek Deng, head of Bain & Co’s consumer products and retail practice for Greater China, observed that international brands are continuously refining their strategies, investing more resources into brand building, and adapting their marketing to align with Chinese consumer habits. This approach is driving foreign brands’ steady inroads into China’s competitive consumer goods market.