Digital consumption is rapidly expanding in China, emerging as a key driver of household spending and a new engine for the country's consumer market.

In the first half of 2025, digital consumption reached 9.37 trillion yuan (about $1.3 trillion) in China, accounting for 46.5 percent of the total household consumer spending, according to a report on digital consumption.

The report, released by the China Internet Network Information Center, shows that by June, China had more than 958 million digital consumers, representing 85.3 percent of all internet users in the country.

Online consumption is no longer limited to young or urban people. Generation Z makes up 27.2 percent of the digital consumers, while those aged 60 and above account for 12.2 percent. Rural users, at 26 percent, now participate in online subsidy programs at levels comparable to their urban counterparts.

What people buy online is also evolving. Smart products have evolved from trendy categories to mainstream products, with nearly four in 10 netizens purchasing smart home appliances, digital devices, or wearables in the first half of 2025.

Meanwhile, "trendy toys," from blind boxes to IP-themed merchandise, have emerged as a niche but fast-growing segment, reflecting the rise of emotion-driven consumption.

Digital spending on travel, transport, and cultural services exceeded one trillion yuan, as did food delivery. Meanwhile, digital public services, including online healthcare, education, and home services, accounted for over 500 billion yuan in spending.

(With input from Xinhua)