China's consumer landscape has undergone a remarkable transformation during the 14th Five-Year Plan, with retail sales surging to $6.78 trillion in 2024. This growth now accounts for nearly 60% of national GDP, signaling a decisive shift toward consumption-driven economic expansion.
The rise of new energy vehicles (NEVs) exemplifies this evolution, with domestic brands like BYD and NIO capturing both market share and global attention. Meanwhile, service sector spending – from eco-tourism to digital entertainment – has increased by 22% year-on-year, reflecting changing consumer priorities.
Analysts highlight three key drivers:
Government policies promoting sustainable consumption
Tech-driven retail innovations
Growing middle-class demand for quality services
This 'greening' of consumption aligns with China's dual carbon goals, as eco-friendly products now represent 35% of total retail sales. The trend creates new opportunities for businesses adapting to health-conscious and environmentally aware shoppers.
As cross-border e-commerce platforms connect Chinese consumers with global brands, international investors are closely watching this $6.78 trillion market's next phase of development.
