Home Consumer Which of China’s consumer segments is growing fastest?

Which of China’s consumer segments is growing fastest?

From pet care to nutraceuticals, several fast-growing consumer segments are showcasing the diversity of the Chinese consumer market

by Tom Pattinson
0 comments
An image of a busy commercial street in China to illustrate China's fast-moving consumer market

China has emerged as one of the world’s most dynamic consumer markets, with fast growth in many consumer segments driven by the middle class’ expansion and shifting lifestyles. The report, Profiling China’s Fastest-Growing Consumer Segments by WPIC Marketing + Technologies, dives into several flourishing sectors – beauty, fashion, wellness, outdoor sports, pet care, and home goods – providing key insights for brands seeking opportunities within China’s consumer segments.

The role of e-commerce in China’s consumer landscape

China’s e-commerce ecosystem is the primary sales driver across consumer categories, with digital platforms accounting for over half of retail sales. As the report highlights, this ecosystem includes well-known search-based platforms like Tmall and JD.com, as well as fast-growing social commerce platforms like Douyin. Tmall remains the largest, commanding 33.7% of the market with nearly 895 million daily users. JD.com follows with a focus on quality and logistics, holding a 19.9% share. Meanwhile, Douyin, with its attention-capturing blend of short-form video content and commerce, has gained substantial traction and now claims 16.9% of the market.

Notably, livestream shopping has become a popular method for purchasing goods, now accounting for 26% of all e-commerce sales, a dramatic increase from just 5% in 2019. Although pioneered by Tmall, Douyin is now leading the shift to livestream shopping, with personalised content delivery through algorithms that connect consumers to relevant products.

China e-commerce market share 2024

Key trends across consumer segments

Beauty, personal care and fashion

The beauty, personal care and fashion segments have shown robust growth in 2024. Driven by post-pandemic demand, beauty product sales increased by 6%, personal care by 2.3%, and fashion by a remarkable 14.4% in 2024. This resurgence is accompanied by trends such as creative makeup, scientific skincare, “quiet luxury” and athleisure wear.

Douyin’s social commerce approach has proven particularly effective in this sector, where the platform saw growth rates of 44% in fashion, 40% in beauty, and 26% in personal care. With its focus on visual and interactive content, Douyin connects users to new brands and trends, fostering rapid adoption of products through influencer reviews and real-time product demos. For British brands, Douyin offers an excellent platform to promote high-engagement products like colourful cosmetics and functional, trendy clothing.

Nutraceuticals, outdoor, and sports

As Chinese consumers become more health-conscious, the nutraceutical sector has seen exponential growth. The health and wellness market has grown by 12.8% to reach $874 billion (£673 billion) in 2024, with expectations that it will nearly double by 2030. Within this sector, vitamins, target supplements (for example, for bone health or aesthetic purposes), and protein powder for sports nutrition are surging in popularity.

Outdoor sports and fitness-related products have also flourished. This sector, valued at $50.9 billion (£39.5 billion), grew by 22%, with items such as cycling, camping and hiking gear gaining traction. Douyin’s role as a trend amplifier is evident here as well, with 89% growth in the GMV sports and fitness products on the platform, as is Xiaohongshu’s role as a platform for sharing tips and itineraries. Outdoor sports are becoming more accessible and appealing to a broad demographic, particularly among urban dwellers seeking both fitness and social engagement.

Pet industry

A reflection of broader lifestyle changes, the pet care industry has witnessed an extraordinary 18.3% year-over-year growth, reaching $99 billion (£76 billion) in 2024. Factors such as increased urbanisation, delayed family milestones and a shift toward “pet parenting” have driven this growth. Chinese pet owners, predominantly young urban women, are investing heavily in premium pet care products, including vitamins and grooming supplies.

Home, mother and baby

The home goods category has shown continued growth, driven by the rising demand for high-quality, convenient home improvement solutions. In 2024, online sales of appliances hit $70.2 billion (£54.1 billion), marking an 11.9% increase. Household cleaning products also saw 9.5% growth, reflecting a strong focus on cleanliness and convenience in daily life.

Interestingly, despite a declining birth rate, the mother-baby category remains robust. With a 7.3% increase in online sales, the market for baby products reached $12.2 billion (£9.4 billion). Douyin now leads this category, holding a 45.5% share, as a new generation of parents turn to social media for recommendations and product reviews from parenting influencers. Premium baby skincare and vitamin products have emerged as high-growth sub-categories, highlighting a willingness among parents to invest in their children’s wellbeing.

Strategic insights for brands entering the Chinese market

For brands seeking to capitalise on these trends, WPIC’s report underscores the importance of a multi-platform approach. Traditional e-commerce platforms like Tmall and JD.com are indispensable for product distribution and visibility. On the other hand, social commerce platforms like Douyin and Xiaohongshu offer unique, high-engagement opportunities. The success of influencer-led and livestream shopping highlights the value of content-rich, interactive marketing strategies.

Why social commerce matters

The shift toward interest-driven and social-based commerce is reshaping consumer expectations and purchase behaviours. As the report explains, consumers on platforms like Douyin are not only shopping but also seeking inspiration and community interaction. By integrating brand content within consumers’ social feeds, brands can reach potential buyers in their moments of discovery and inspiration, which significantly improves conversion rates.

Category-specific growth strategies

While social commerce should be a part of the strategy for all consumer brands in China, the most effective ways to grow and expand differ by category.

In beauty and fashion, brands should emphasise self-expression and personalisation to engage Chinese consumers effectively. For example, this could involve showcasing user-generated content (UGC) from independent makeup artists. Meanwhile, in the nutraceuticals and sports sectors, brands can appeal to rising health-consciousness by showcasing product efficacy and aligning with wellness influencers.

Key takeaways for British brands in China

China’s consumer market presents a unique blend of tradition and innovation, with opportunities across multiple sectors. The country’s evolving consumer behaviour is guided by trends toward wellness, premiumisation, and lifestyle enrichment, driven by urbanisation and changing family structures. For brands, an omnichannel strategy that encompasses both established marketplaces and emerging social platforms will be essential.

As WPIC Marketing + Technologies notes, navigating this vibrant market requires a nuanced understanding of platform dynamics and category trends. Brands that embrace this multifaceted approach and stay attuned to consumer shifts will be well-positioned to thrive in China’s rapidly evolving landscape.

launchpad CBBC

Related Articles

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More