2026 China’s New Consumption Landscape: Confidence Returns — But “Relevance” Decides Who Wins

What brands, retailers, and marketers need to know about the shifts shaping China’s consumer market in 2026

A Recovery with Conditions: Why Confidence Is Up, But Caution Persists

China’s macro story entering 2026 is not simply “rebound” — it is a controlled recovery where consumption is increasingly important to growth, but confidence still needs reinforcement. The report highlights that consumption’s contribution to GDP growth has risen over the past decade, with a clear policy and economic imperative to keep strengthening consumer sentiment.

Policy support is doing heavy lifting. Across four rounds of subsidies and bond-backed support aimed at stimulating domestic demand, the report cites a cumulative scale close to RMB 370 billion.

Consumers are noticing the stabilisation. By July 2025, 50% of surveyed consumers believed their household financial situation would be better than the present，up from 45% a year earlier， while 21% expected things to worsen (unchanged year-on-year).

But confidence is not the same as free-spending. The report explicitly notes that, even under a “stable recovery”, a large share of consumers remain relatively cautious in expenditure.

And yet, spending momentum is returning: year-to-date growth shows tech and durables up 12.5% (vs 3.6% prior period comparison) and FMCG up 4.7% (vs 2.4%).

The takeaway: the market is expanding，but the rules of conversion are tighter. Winning in 2026 means proving usefulness, trustworthiness, and emotional relevance at every step.

What People Worry About Now: “Economic Downturn” Meets “Wellbeing”

Understanding anxiety is essential because it predicts where consumers will trade down, where they’ll trade up, and what messaging lands.

In the next six months, the top stated worries include:

• Economic downturn (30.4%)

• Personal & family welfare / happiness (29.9%)

• Job security (20%)

• Food price rises (14%)

• Health issues (13%)

Alongside concerns such as epidemic diseases basic living capability and environmental issues.

This combination matters. It signals that value isn’t purely financial: security and wellbeing are becoming central to how consumers assess brands — particularly in everyday categories where trust is built through repeated choices.

The New Value Equation: Quality Builds Trust, Convenience Wins Time, Experience Earns Premium

A key message in the report is that what feels “worth it” is increasingly three-dimensional: functional quality as the foundation, health and convenience as accelerators, and experience as the final destination.

You can see this in how consumers manage daily expenditures. The most-cited behaviours include: buying during favourite-brand promotions (26%), using online shopping for better prices (23%), shopping at discount/value stores (22%), and using digital tools to find deals (21%) — all down versus the prior year, suggesting slightly less “panic saving” but continued value discipline.

When it comes to willingness in paying more, the strongest triggers are unmistakable:

• Product safety & quality assurance (81%)

• Healthier products (77%)

• More convenient product formats (74%)

• Better “out-of-home or stay-at-home” experiences (64%) 

  
  

What this means for brands: premiumisation hasn’t disappeared — it has become conditional. Consumers will pay more, but only when premium feels relevant to their life, not just positioned as “better”.

Generations as Strategy: From “Life Enjoyment” to “Circle Identity”

One of the most useful frames in the report is generational: a shift from Baby Boomers’ “enjoy life” mindset, to Gen X’s pragmatic control, to Millennials’ experience-first pursuit of quality, and Gen Z’s identity and circle-based consumption.

Baby Boomers (61 years old and above): Trust, Familiarity, and a Surprise Appetite for Newness

This cohort is often stereotyped as slow-moving, but the report shows a more dynamic reality. 72% prefer familiar brands, yet 55% are willing to pay for new products, and 83% say they are willing to try AI-assisted shopping.

73% also show strong interest in functional health support (e.g., nutrition-added products) and a 77% are willing to pay a premium for products that help sustain quality later life.

Implication: for this group, “innovation” must be delivered through the language of trust: reliability, safety, clear benefits, and human reassurance.

Gen X (40–59): Minimalism, Self-Judgement, and Local Confidence

Gen X emerges as the “rational long-termist”: less easily influenced, more likely to simplify. Only 22% say they trust recommendations from acquaintances, and just 11% trust online influencer recommendations.

They’re also highly anti-waste: 48% say they only buy what they’re sure they will use, and 33% believe focusing on what is truly needed brings happiness.

Notably, 38% prioritise buying local products, reflecting a values-driven “buy better, buy closer” mentality.

Implication: win Gen X with substance, not hype — and treat “local” not as a label, but as proof of quality and cultural confidence.

Millennials (20–39): Pay for Experience, But Demand Proof

Millennials remain the engine of “paid convenience” and experience-driven premium. 81% expect delivery within 30 minutes on digital shopping platforms. 70% are willing to pay for a better usage experience, and 85% will pay a premium for excellent quality and reliable safety assurance.

They also reward brands for trust and transparency: willingness to pay for brand trust (64%), preference for credible ingredients and clear supply chains (70%), and sustainability as a key consideration (65%).

Implication: experience sells, but only when paired with measurable proof (quality, transparency, and credible sustainability).

Gen Z (0 -18 in the report’s framing): Circles First, Celebrities Second

Gen Z is described as critically rational digital natives in an era of information overload, with rising thresholds for what deserves attention.

They prioritise efficiency and identity: the report highlights willingness to pay for time-saving, effort-reducing solutions, while also showing scepticism toward celebrity/KOL persuasion (32% “unmoved” by celebrity/KOL-recommended brands).

Crucially, credibility is often in-group: 72% of university students say “same department / same club” labels increase trust when purchasing.

This is where “circle culture” becomes commercial infrastructure. The report points to collab-driven consumption and fandom-led spending: Luckin × Genshin Impact collaboration exceeded RMB 4.5 million in sales on Douyin, and the “Guzi Economy” (collectible merch ecosystem) was projected to surpass RMB 200 billion in 2025, supported by a 503 million pan-ACG user base with Gen Z comprising 95%.

Implication: Gen Z doesn’t want to be marketed to, they want brands to participate in their culture with respect, nuance, and fluency.

The Path Forward: How Brands Build “Relevance” in 2026

The report offers a practical brand roadmap framed as a sequence of questions: clarify who you are and what problem you solve for which generation; deliver real functional and emotional value across the full chain; communicate sincerely and precisely; decide whether to go deep in one core circle or cover multiple needs; and build deep recognition where consumers feel “this is relevant to me”.

In 2026, “relevance” is not a slogan, it is a system. To operationalise it, brands should:

• Anchor premium in trust: safety, quality, transparency, and real-world proof.

• Design for time and wellbeing: convenience and health are no longer add-ons; they are purchase triggers.

• Segment by mindset, not just age: each cohort has a different “entry ticket” (trust, utility, experience, identity).

• Treat communities as media: for Gen Z, circles are credibility engines and conversion channels.

  
  

Reach out to our team if you’d like support translating these shifts into a clear 2026 plan.