As world’s largest and fastest moving consumer market, trends in China send ripples around the world and are vital to keep track of to understand how consumers are changing their habits and their preferences. Here are our here are our top picks for 2025.
Social commerce shift
The integration of payment options into China’s social media platforms, has led to a social shopping boom, with creators and brands selling directly on their video posts and during live streaming. Valued at $425 billion USD in 2023, China’s social commerce sector is projected to almost double by 2029. This momentum is highlighted by a 46.5% sales increase during the recent Double 11 sales festival, with Gen Z and Millennial buyers leading the pack. China continues launch innovative social commerce through WeChat mini programs, Douyin and Little Red book, which is causing Western social media platforms to scramble to catchup to the success of TikTok Shop.
AI joins the team
Consumers are increasingly comfortable interacting with AI. Much of this is due to the launch of ChatGPT and similar platforms around the world. In 2023, China’s chatbot market was valued at USD 672.2 million, with over half of online retailers utilising AI chatbot tools for customer service and personalised user experiences. This trend also extends further into smart AI functions in a wide range of consumer devices, from phones to fridges, robotic vacuum cleaners and more. The competitive EV market is bringing new AI capability into vehicle functions to compete with rival brands. At work people are becoming more used to interacting with AI as companies integrate tools for data analysis and operations.
Pet Consumption
The spending power of China’s middle-class consumers is driving the increased ownership of pets. One in every eight Chinese people now has a household pet. Industry expos for pet products and services, once dominated by wholesalers, are now attracting a wider audience, including potential pet owners, pet influencers, and current pet owners. Attendees are seeking pet health-related products, including premium food, snacks, pet health insurance and training schools, are becoming increasingly popular. Rapid growth of the pet healthcare system is underway, with just one veterinarian for every 11,000 pets currently.
Guochao (Made In China)
As China’s economy grows and gains more international attention, Chinese consumers are becoming more confident in their culture and local brands. The Guo Chao trend (literally translated as “Chinese trend”), which blends traditional Chinese characteristics with modern elements, is on the rise. This shift can be seen in local electronic giants Xiaomi and Huawei, both of which have reported over 30% growth. Locally made skincare brands in China are more popular than ever and are competing with the high profile of popular imported brands from South Korea, Japan and Singapore.
EV Car Market
The rise of Chinese-made electric vehicles has been dramatic, with over $46.43 billion USD in EVs exported since 2023. The number of local Chinese EV brands has also increased, reaching 137—up from 60 brands in 2019. Plug-in hybrid models (PHEVs) lead this growth in China, with sales rising by 85% since 2023. In the global vehicle market, Chinese-manufactured vehicles now account for 76% of total sales. Several international brands are using their long-standing joint venture partnerships in China to manufacture vehicles for the global market.
Silver Generation Economy
As the world’s largest aging economy, China’s silver economy is estimated at approximately US$982 billion, contributing about 6% of the nation’s GDP. By 2030, an additional 100 million people are expected to enter this demographic, significantly increasing demand for elderly-focused products and services, including healthcare, financial planning, and recreational options. This demographic change, in one of the world’s largest consumer economies, will impact the overall demand and supply for a huge range of product and service categories, including everything from food to home-care robots.
The Great Outdoors
China’s middle-class consumers are dedicating more time to hobbies, fuelling a 6.9% increase in the sports and fitness sector over the past year. Activities like glamping, fishing, and hiking are popular among Gen Z and Millennials, with the camping industry seeing a 12.08% jump in just one year. China’s growing silver generation, now 21% of the population, is also embracing more leisure and fitness trends. As more Chinese consumers join this trend, sports equipment and clothing brands will have a broader demographic to serve, creating greater opportunities for competitors.
Lower Tier City Growth
As China’s middle class has grown over time, most new consumers that join this level of spending power are emerging from lower-tier cities. Economic headwinds, both real and perceived ones, and felt more keenly in large cities. This has led to overall more positive consumer sentiment in smaller cities. In 2023, global brands like KFC opened 60% of their 1,200 new stores in these areas, recognising the potential for expansion. Understanding the sentiment and preferences of consumers from lower tier cities is viral for international brands to connect with a wider audience in China.
Conclusion
Many of these trends will interact with each other as different demographics consider and purchase products and services throughout 2025. We are watching these closely and integrating the latest insights to provide our clients with the edge in this massive market. If you’re like to know more about our strategy and insights for your brand, feel free to get in touch with us here: sales@umssocial.com
