China’s consumer market is gaining fresh momentum from an explosion of new business formats and consumption scenarios as well as a robust policy push, and the dynamism is prompting global companies to position themselves for a stake in what they see as one of the world’s most significant sources of future growth, analysts and executives said.

The recently concluded China International Consumer Products Expo in Hainan province underscores the country’s efforts to shore up consumer spending, as policymakers place boosting consumption at the top of China’s economic agenda for this year and beyond.

According to the outline of China’s 15th Five-Year Plan (2026-30), the country aims to “achieve a notable increase in household consumption as a share of gross domestic product, making domestic demand a more prominent economic driver”.

“China’s growth has moderated from its historic highs, but the economy — especially the consumer market — has proven remarkably adaptive,” said Daniel Zipser, senior partner at global management consultancy McKinsey & Company.

Zipser said that growth in the apparel, beauty, and food and beverage segments, the expansion of services and experiences, and inflation as a signal of demand strength, all point to “a market that is rebalancing”.

Data from the National Bureau of Statistics shows that China’s retail sales of consumer goods rose 2.4 per cent year-on-year in the first quarter of this year, while service retail sales grew 5.5 per cent over the same period.

In early April, China allocated a second tranche of 62.5 billion yuan (£6.8 billion) to support its consumer goods trade-in programme, and unveiled dedicated guidelines to boost service consumption in both established sectors such as elderly and child care and tourism, and emerging growth areas including inbound consumption and live performance.

“New types of consumption, green consumption and services consumption are projected to become long-term engines of growth,” said Jeff Wu, vice-chairman of KPMG China. “They are a key source of incremental revenue for multinational companies.”

Foreign companies, experts said, will find an expanding array of pathways to connect with Chinese consumers and embed themselves in the dynamic market ecosystem.

“Consumption is now becoming the primary engine of economic growth,” said Wang Xuekun, head of the Chinese Academy of International Trade and Economic Cooperation. “Notably, the people’s aspiration for a better life has evolved from a focus on sufficiency to quality.”

Events like the Hainan expo are not just trade fairs, they are designed to help global businesses better resonate with Chinese buyers and translate the country’s appetite for high-quality goods and services into opportunities for domestic and international players alike, Wang added.

The sixth edition of the Hainan expo brought together more than 3,400 brands from over 60 countries and regions, with international exhibits accounting for 65 per cent of the total. More than 200 new products made their debut, double the number last year.

“Internationalisation of the expo has increased year by year, which further convinces us that China’s door will only open wider and wider, welcoming more businesses to share in its development opportunities,” said Yang Gang, vice-chairman of Charoen Pokphand Group in China. The Thai multinational focuses on the agro industry and food in China.

Yang noted that the company aims to leverage Hainan, which allows freer entry of overseas goods and expanded zero-tariff coverage following the inauguration of its island-wide special customs operations in December, as a logistics hub to efficiently deliver high-quality agricultural products from Southeast Asia to the Chinese market.

Chinese consumers are outpacing their global peers in embracing health-conscious, sustainable and internationally sourced products, creating fresh opportunities for overseas brands, according to a report on China’s consumer market released by PwC in January.

The trend is being reinforced by the “Big Market for All: Export to China” initiative launched by the Ministry of Commerce, featuring more than 100 dedicated events this year designed to help overseas suppliers connect with Chinese buyers and bring a wider range of high-quality foreign products and services into the Chinese market.