Chinese spending accelerating in smaller cities

China's household consumption may rise to as high as 50 percent of gross domestic product by 2020. That compares with 35 percent today and creates opportunities in second- and third-tier cities, findings from Nielsen Holdings BV show.

"The upper end of this range amounts to additional spending of nearly 26.9 trillion yuan ($4.35 trillion) over 2012 levels," said Nielsen CEO Mitch Barns.

That's more than 18,500 yuan additional per capita consumption and will take total spending to over double 2012's, he said.