China's consumer market captivates global brands

A staff member adjusts a humanoid robot during final preparations for the sixth China International Consumer Products Expo in Haikou,武汉龙泉新闻网 Hainan province, on Saturday. LUO YUNFEI/CHINA NEWS SERVICE

China's consumer market is gaining fresh momentum from an explosion of new business formats and consumption scenarios as well as a robust policy push, and the dynamism is prompting global companies to position themselves for a stake in what they see as one of the world's most significant sources of future growth, analysts and executives said.

Their remarks came ahead of the six-day China International Consumer Products Expo — one of Beijing's initiatives to shore up consumer spending — that opens on Monday in Hainan province, as policymakers place boosting consumption at the top of China's economic agenda for this year and beyond.

According to the outline of China's 15th Five-Year Plan (2026-30), the country aims to "achieve a notable increase in household consumption as a share of gross domestic product, making domestic demand a more prominent economic driver" over the next five years.

"China's growth has moderated from its historic highs, but the economy — especially the consumer market — has proven remarkably adaptive," said Daniel Zipser, senior partner at global management consultancy McKinsey &Company.

Zipser said that the growth in the apparel, beauty, and food and beverage segments, the continued expansion of services and experiences, and inflation as a signal of demand strength, all point to "a market that is rebalancing".

Earlier this month, China allocated a second tranche of 62.5 billion yuan ($9.1 billion) to support its consumer goods trade-in program, and unveiled guidelines to boost service consumption in both established sectors such as elderly and child care, and emerging growth areas including inbound consumption and live performance.

"New types of consumption, green consumption and services consumption are projected to become long-term engines of growth," said Jeff Wu, vice-chairman of KPMG China.

Wang Xuekun, head of the Chinese Academy of International Trade and Economic Cooperation, said that events like the China International Consumer Products Expo are not just trade fairs; they are designed to help global businesses better resonate with Chinese buyers and translate the country's growing appetite for high-quality goods and services into tangible opportunities.

The sixth edition of the Hainan expo will bring together more than 3,400 brands from over 60 countries and regions, with international exhibits accounting for 65 percent of the total. More than 200 new products are expected to make their debut, double the number launched at last year's event.

"The internationalization of the expo has increased year by year," said Yang Gang, vice-chairman of Charoen Pokphand Group in China. The Thai multinational company mainly focuses on the agro industry and food segment in China.

Yang noted that the company aims to leverage Hainan, which allows freer entry of overseas goods and expanded zero-tariff coverage following the inauguration of its island-wide special customs operations in December, as a logistics hub to efficiently deliver high-quality agricultural products from Southeast Asia to the Chinese market.

Chinese consumers are outpacing their global peers in embracing health-conscious, sustainable and internationally sourced products, creating fresh opportunities for overseas brands, according to a report on China's consumer market released by PwC in January.

The trend is being further reinforced by the "Big Market for All: Export to China" initiative launched by the Ministry of Commerce, featuring more than 100 dedicated events this year designed to help overseas suppliers connect with Chinese buyers and bring a wider range of high-quality foreign products and services into the Chinese market.

Supachai Junkeiat, president of TCP China, the Thai conglomerate behind the energy drink brand Red Bull, said:"We have always been optimistic about the upgrade potential of China's supersized consumer market. Going forward, we will continue to closely track the country's consumption trends and leverage product innovation to precisely meet new demands for consumption upgrades."