Multinational giants defy China’s sluggish retail market with strong 2026 sales

Major consumer goods multinationals, including Coca-Cola and Unilever, have experienced strong sales growth in China during the first half of 2026, despite a sluggish overall domestic market. This growth contradicts slow domestic consumption data, leading to concerns about whether overseas investors are underestimating some companies.

Adidas, a German sportswear maker, saw a 16% rise in sales in the country year-on-year, with the 2026 Fifa World Cup contributing to the growth. L’Oreal, a French cosmetics group, posted growth across all categories and regions, with China being a key driver of recovery due to a rebound in the selective segment. Unilever delivered its strongest sales volumes in over a decade, with mid-single-digit growth led by its beauty and well-being categories.

Unilever attributed the performance to stronger demand for premium products and wider coverage in fast-growing retail channels. The National Bureau of Statistics reported 24.9 trillion yuan in total retail sales in the first six months of 2026, up 1.3% year-on-year. American drinks maker Coca-Cola also posted a 5% growth in global unit case volume for the second quarter, with local flavor profiles in products tailored to Chinese consumers.

The retail landscape in China is undergoing structural shifts, with brands needing to focus on penetration, mix, and expansion instead of relying solely on headcount growth.