China's major consumption trends in 2023

China's consumer spending trends have seen a positive upturn as consumer spending contributed 83.2 percent to economic growth during the first three quarters of 2023, the Guangming Daily reported.

This surge in consumer activity marks an improvement in spending patterns, which have become more rational and individualized.

The young consumer group, who were born between 1995 and 2009, has emerged as a driving force in the consumer market. They are exploring diverse and personalized consumption styles, reshaping the market structure.

Let's have a look at the major consumption trend in 2023.

Flourishing pet economy

China's pet economy is projected to reach 592.8 billion yuan ($83.19 billion) by 2023, following a compound growth rate of 20.2 percent from 2015 to 2020, according to iiMedia Research released on Nov 14.

People now see pets as family members rather than just emotional companions, leading to higher spending on pet-related expenses, according to the Report on the Operation Status and Consumer Market Monitoring of China's Pet Industry from 2023 to 2024 by iiMedia Research.

The trend has propelled growth across various segments such as pet food, supplies, medical care and entertainment, indicating expansive opportunities within China's pet economy.

The majority of pet owners in China are corporate professionals, accounting for 63.8 percent, finding comfort in pets amid work stress. There are 42.1 percent of adults aged 26-30 who have pets, due to a rising number of single-person households.

Its research data shows that Chinese pet owners primarily spend on pet food, supplies and healthcare in 2023.

Among these expenses, cleaning and care products represent the majority at 79.2 percent, while preferences for food choices lean towards dry food (61.1 percent) and snacks (57.8 percent).

Moreover, items catering to digestive health maintain popularity, accounting for 60.2 percent of purchases.

Pet owners typically buy food 1-2 or 3-4 times monthly; with over 84.56 percent of owners annually spending more than 500 yuan.