Updated on August 18, 2026
In fiscal 2026, P&G’s Greater China business grew again thanks to SK-II and Pampers, but its mass brands still lose ground to Chinese competitors. The group now says it will not compete on price.
By Daxue Consulting
In fiscal 2026, which ended in June, P&G’s organic sales in Greater China grew 4%, after four years of decline in a row, from fiscal 2022 to fiscal 2025. Group sales grew 3% to US$87.0 billion (21st Century Business Herald (21世纪经济报道) via Eastmoney, July 2026). The recovery came from the premium brands: SK-II grew 8% in China without travel retail, and Pampers had six quarters in a row of double-digit growth (National Business Daily (每日经济新闻), August 2026).
P&G came to China in 1988, and its Greater China headquarters are in Guangzhou. At the beginning, its strategy was about volume: more factories, more brands and more cities. According to the company, its Chinese categories were still down about 2% overall in fiscal 2026. So growing 4% in categories that shrink by 2% means that P&G gained share on average, for the first time in several years. For us, this is a stronger signal than the growth rate itself. In this article, we will see where P&G grows in China, where it is under pressure, and what its approach means for international FMCG and beauty groups.
| Daxue Overview |
|---|
| History: in China since 1988; Greater China headquarters in Guangzhou. |
| Results: global sales US$87.0 billion in FY2026 (+3%); Greater China organic sales +4% after four years of decline. |
| Winners: SK-II (+8% in China excluding travel retail); Pampers (double-digit growth for six quarters, nearly 5 points of share gained). |
| Under pressure: Olay, Pantene and Crest, facing Chinese brands. |
| Strategy: premium, China-specific innovation, fewer mass products, no price war. |
P&G in China: key figures
Exhibit 1: Premium brands drive the return to growth
| Indicator | Figure | Period | Source |
|---|---|---|---|
| P&G net sales | US$87.0 billion, +3% | FY2026 (to June 2026) | 21st Century Business Herald via Eastmoney |
| Greater China organic sales | +4%, after four years of decline | FY2026 | Same |
| P&G’s Chinese categories | About -2% | FY2026 | P&G via National Business Daily |
| SK-II in China, excluding travel retail | +8% | FY2026 | National Business Daily |
| Pampers in China | Double-digit organic growth for six quarters; nearly 5 points of share gained | To FY2026 | Same |
| Crest | Low single-digit organic decline, mainly from China volumes | FY2026 | Same |
Sources: as listed in each row; table designed by Daxue Consulting.
P&G chose focus over volume
Shailesh Jejurikar, who became CEO on January 1, 2026 (Fortune, July 2025), said that when growth in China slowed, P&G did not want to “ride in the train” anymore, but to “drive the train”. The CFO, Andre Schulten, talked about a “structural polarization” of the Chinese market, not a short-term fluctuation. P&G does not aim to come back to high single-digit growth in China in fiscal 2027, and it is cutting mass products that do not perform, to avoid price wars that make no money (National Business Daily).
SK-II and Pampers lead the recovery
SK-II. After a difficult period, SK-II grew 8% in China without travel retail, with the help of its LXP super-premium line. According to the CEO, this model of innovation made for China in ultra-premium “can contribute both profit and growth”.
Pampers. Pampers had double-digit organic growth for six quarters in a row and won almost five points of share, and P&G says it is the leader in baby care in China again. Its premium “black gold” (黑金帮) range follows the same logic of premium products made for China, in a market where births went down to 7.92 million in 2025 (see diapers in China).
Olay, Pantene and Crest face Chinese brands
- Olay is losing share in mass skin care to Chinese brands such as Proya (珀莱雅), Kans (韩束) and Comfy (可复美).
- Pantene is in an “adjustment period”, especially in lower-priced hair care.
- Crest saw its organic sales go down by a low single digit, mostly because of lower volumes in China, where new Chinese oral care brands like Canban (参半) go after its consumers.
The CFO admitted that P&G still has “work to do” in China, especially in cheaper Pantene products and in toothpaste (National Business Daily). We analyzed the rise of Chinese beauty brands in the C-beauty brands report and in the cosmetics and personal care market in China.
Exhibit 2: P&G, Unilever and Chinese brands in China
| P&G | Unilever | Chinese brands (Proya, Kans, Comfy) | |
|---|---|---|---|
| Recent China trend | +4% organic in FY2026 | Mid-single-digit growth in H1 2026 | Fast growth for leaders |
| Growth engine | SK-II, Pampers | Beauty and wellbeing | Douyin, efficacy claims |
| Strategy | Premium, no price war, fewer mass products | Slimmer portfolio, premium | Speed, price, ingredients |
| Weak point | Mass beauty, hair care, oral care | Mass brands squeezed on price | Profitability, brand age |
Sources: 21st Century Business Herald, National Business Daily; table designed by Daxue Consulting.
Unilever follows a similar path (see Unilever in China): both groups are moving away from price competition in mass categories and toward premium brands and innovation designed for China.
Premium brands win on visible proof
SK-II and Pampers both have a clear premium promise, with a proof that Chinese consumers can see: ingredients and results on the skin for SK-II, comfort and skin health for Pampers. On Xiaohongshu, parents compare diapers in detail; on Douyin, skin care sells with creators and livestreams. P&G’s mass brands are most at risk where Chinese brands are fastest, which means Douyin livestreams and new efficacy claims.
How P&G’s China business has changed over the past decade
Exhibit 3: From volume expansion to premium focus
| Early 2010s | Today | |
|---|---|---|
| Strategy | Volume, new factories, more cities | Premium, China-specific innovation, profitable growth |
| Growth | China as P&G’s second market, fast growth | Back to +4% after four years of decline |
| Hero brands | Pampers, Olay, Head & Shoulders, Tide | SK-II, Pampers |
| Main rivals | Unilever, local laundry brands | Proya, Kans, Comfy, Chinese oral care brands |
| Channels | Supermarkets, hypermarkets | Tmall, JD, Douyin, membership stores |
Daxue Take: implications for FMCG and beauty groups
Between 2021 and 2025, being big stopped working for P&G in China, because Chinese brands took mass and mid-range categories with faster innovation and lower prices. Its answer has been to focus: compete where its science, its brands and its innovation made for China make a difference, and leave the battles it cannot win with a profit. The open question is the middle of the market, where Olay, Pantene and Crest still serve millions of consumers.
- For multinational FMCG groups, the Chinese market is polarized: growth is at the premium end and at the value end. Global brands with a middle price are the most at risk, and they may need a new role or a smaller presence.
- For brands with global ranges, SK-II and Pampers grew with products made for Chinese consumers. A pipeline of innovations for China has more chances to bring growth back than importing global ranges.
- For groups tempted by promotions, P&G, one of the most efficient FMCG companies, decided not to fight Chinese brands on price. For groups that are smaller, competing on price is even more risky.
- For brands with broad ranges, fewer, stronger products tend to be more profitable than a long tail competing on promotion.
- For baby care brands, Pampers shows that a shrinking category can still reward a premium leader.
Questions for leadership teams: Which of the brand’s products sit in the squeezed middle? Which China-specific innovations are in the pipeline? Where does the brand refuse to compete on price?
What to watch next
- P&G’s Greater China organic growth in the first quarter of fiscal 2027.
- Whether Olay and Pantene stabilize against Chinese brands.
- SK-II’s performance in travel retail, including Hainan.
- Pampers’ share in a market with fewer births.
FAQ about P&G in China
When did P&G enter China? P&G entered China in 1988 and has its Greater China headquarters in Guangzhou.
How is P&G performing in China? It is growing again. In fiscal 2026 (to June 2026), P&G’s Greater China organic sales grew 4%, after four years of decline.
Which P&G brands are growing in China? SK-II, which grew 8% in China excluding travel retail, and Pampers, which posted double-digit growth for six quarters in a row.
Which P&G brands are under pressure in China? Olay, Pantene and Crest face strong competition from Chinese brands in mass skin care, hair care and oral care.
Who is P&G’s CEO? Shailesh Jejurikar became CEO on January 1, 2026, succeeding Jon Moeller, whose appointment was announced in July 2025.
About Daxue Consulting
Daxue Consulting is a market research and strategy consulting firm focused on China. For FMCG and beauty groups, Daxue Consulting reviews brand portfolios by price segment, benchmarks Chinese competitors product by product, tests China-specific innovations with consumers, and follows conversations on Xiaohongshu, Douyin and Tmall reviews. Related analysis: laundry detergent market in China. Learn more about our business strategy and consumer research services, or contact our team.
Author: Daxue Consulting
