China Consumer Market–A Positive Future Outlook

January 2026

Retailers in China are navigating a challenging landscape characterised by weak consumer sentiment and fierce price competition. Many are grappling with the transition from traditional brick-and-mortar operations to an omni-channel presence, while also seeking ways to significantly reduce their dependence on ‘slotting fee’ income models.

In this report, PwC has identified four key factors which will positively shape the future of China’s consumer market. Foremost is the rise of an upper middle-income population poised to fuel demand. The second factor is the rapid expansion of successful international and domestic grocery retailers, which signifies robust confidence in China’s consumer market. The third factor is that Chinese consumers surpass their global peers in embracing health, sustainability and international products, thus creating opportunities for new categories and products.

Lastly, the financial markets anticipate a strengthening of the Chinese Yuan by 2026. A stronger Yuan, coupled with a stabilised housing market, would boost consumer confidence and invigorate domestic consumption.