China’s consumer confidence registered a recovery, while Generation Z buyers, aged 18 to 25, influenced a new shift in consumption trends, according to a report by McKinsey & Company on China’s 2024 consumer trends.
According to the report, over two-thirds of respondents remain optimistic. The baby boomers (ages 58-65) in first-tier and third-tier cities, as well as the Gen X (ages 42-57) in third-tier cities, have confidence in the economy.
At the same time, young consumers in lower-tier cities are also positive. Meanwhile, 75 percent of millennial (ages 26-41) consumers surveyed in lower-tier cities expressed confidence in China’s economy, compared to 65 percent of millennials in higher-tier cities, and the confidence levels of mid and high-income millennials in third-tier and fourth-tier cities exceeded 80 percent.
As for the urban Gen Z, which consists mainly of single students and ordinary workers, they generally believe that their future income will increase due to the macroeconomy and strong family support.
Therefore, they show a higher willingness to spend on social companionship and spiritually fulfilling activities. In addition, Gen Z tends to pursue a health-conscious mindset and athleisure.
Education, food and beverages, health products and services, and travel were identified as four potential growth categories in the report. Furthermore, it indicated an increase in consumers’ health consciousness and willingness to spend on services and experiences that improve their lives.