Consumer market demonstrates renewed momentum

From the bustling exhibition halls of the eighth China International Import Expo in Shanghai to the busy shopping malls and thriving online platforms nationwide, China's consumer market is showing renewed vitality as the year draws to a close.

At the CIIE held from Nov 5 to Monday, global brands unveiled new products tailored for Chinese consumers, while in cities around the country, shoppers are embracing premium, green and intelligent goods — a vivid reflection of China's rapidly recovering consumption power and the growing heft of its vast domestic market.

Backing this recovery is a raft of government measures to boost domestic demand and expand consumption. Market watchers and business leaders said that the effects of the pro-consumption policies are increasingly evident, as steps to stimulate spending, improve consumer confidence and attract global brands are beginning to translate into tangible momentum across the country's vast market.

Further underscoring this trend, China Daily hosted on Sunday the launch ceremony of the International Communication Initiative, themed "Big Market for All: Export to China" and "Shopping in China", which was attended by Vice-Minister of Commerce Sheng Qiuping.

Chris Kenneally, president for Asia-Pacific at Amcor, the Zurich-headquartered packaging group with 400 plants worldwide, said that the government's measures are not only satisfying the evolving needs of Chinese consumers but also creating new opportunities for global companies to engage with one of the world's most promising and resilient markets.

Driven by rising demand and growth opportunities, the Swiss company plans to build a new factory in Jiangyin, Jiangsu province, to expand production of consumer goods and medical and pharmaceutical packaging.

Jeroen Sterel, director of the Asia-Pacific region at German heating system manufacturer Vaillant Group, said: "The 'Shopping in China' initiative reflects the growing global appeal of Chinese products and attractions, and the maturity of its consumer market. It highlights the greater emphasis on product value and user experience."

For multinational companies, this creates a more demanding but also a more rewarding environment, which values trust, quality and service. Such a direction further unlocks consumption potential and supports steady market growth, said Sterel.

Latest data reflected this sentiment. China's total retail sales of consumer goods rose 4.5 percent year-on-year to 36.59 trillion yuan ($5.15 trillion) between January and September, with the pace of growth 1 percentage point faster than in 2024, data from the Ministry of Commerce showed.

Also, consumer spending contributed 53.5 percent of total economic growth during this period.

Continuing recovery was evident in the consumer sector of China's A-share market on Thursday. The Wind Consumer Sector Concept Index ended at 2,562.97 on Thursday, up 1.04 percent from the previous close and 9.48 percent higher so far this year.

Such momentum has reinforced policymakers' focus on consumption as a core driver of growth. In a meeting held earlier this week, the Ministry of Commerce stressed the need to introduce more detailed measures to vigorously boost consumption and to formulate a series of high-quality special plans for the commerce sector.

In a report released on Tuesday, CITIC Securities noted that the combination of low valuations and a stabilization trend in resilient consumption is expected to enhance investor preference for consumer assets. Based on industry observations, the securities company recommended that investors should focus on inflection-point opportunities that are driven by the wealth effect and supply-side optimization in 2026.

The opportunities include higher-end consumption areas likely to benefit from the capital market's wealth effect transmission, such as duty-free shopping and outbound tourism. Sub-sectors with relatively consolidated supply, improving demand and sound industry structures, such as hog farming and dairy products, also stand to benefit.

Shao Ke, head of the banking and integrated operations team at BOC Research Institute — the in-house think tank of Bank of China — said that the recently announced recommendations for formulating the 15th Five-Year Plan (2026-30) emphasized the interaction and positive feedback between supply and demand.

Efforts to promote consumption will, on the basis of traditional demand, focus more on personalized, diversified and high-quality new demands arising from people's income growth and consumption upgrading, said Shao.

John Quelch, executive vice-chancellor and a professor of social science at Duke Kunshan University, said that China has an opportunity to redefine what modern consumption means.

"Modernization does not necessarily mean copying the Western consumption model," said Quelch. "It means redefining prosperity for an era of constraint, where balance, moderation and foresight become the hallmarks of progress."

In the area of green consumption, global companies are also seeing new opportunities. Asia Pulp and Paper, an Indonesia-based paper product manufacturer, will roll out a range of application-oriented products in China in the coming years, including biodegradable paper tableware such as paper knives, forks and spoons.

Zhai Jingli, deputy CEO of Sinar Mas Group-APP, the parent company of APP China, said China's fast-rising green consumption trend will open opportunities for global companies to advance product innovation and expand their exports to the market.