Editor's note: Liu Chunsheng, a special commentator on current affairs for CGTN, is an associate professor at the Beijing-based Central University of Finance and Economics. The article reflects the author's opinion and not necessarily the views of CGTN.

As China's grandest traditional festival, the Spring Festival is a microcosm of the country's annual consumption, with Chinese New Year goods evolving in lockstep with economic development.

In the early days of reform and opening-up, shopping carts were filled with flour, pork, cotton cloth and other daily necessities. The ultimate goal was survival and "stockpiling for abundance." The action reflected the concentrated release of basic consumption caused by low income and limited choice. However, in 2019, consumption accelerated its upgrading, when China's per capita GDP topped $10,000. The carts shifted to home appliances and ready-made clothes, marking a move towards an improvement-oriented model.

Today, in the Year of the Horse, people's shopping lists are witnessing another major change, characterized by three distinct trends: the pursuit of experiences, a focus on health, and digital integration, signaling a qualitative leap in consumption upgrading.

Health has replaced "face," or prestige, in gift-giving. Mintel's 2026 preview shows that gift giving is becoming more personalized and health-focused. As a result, health-related products like low-GI dumplings and medicinal-food wines are booming.

People are also looking for meaning rather than just merchandise. Experiential consumption, spending money on doing things rather than owning things, has surged. Popular Chinese New Year purchases now include cultural heritage tours, creative "Year of the Horse" cultural products, and travel packages.

Notably, Mintel research shows that 74 percent of Chinese consumers have holiday‑related concerns, including disrupted diets and sleep. The younger generation increasingly views the Spring Festival as a chance for physical and mental rejuvenation. Such a mindset is fueling demand for convenience-oriented solutions, such as pre-made meals delivered to homes.

Technology is what makes this upgrade possible. Advanced e-commerce and logistics have made online shopping the mainstream way to buy New Year goods, as seen in the 2026 Online Chinese New Year Shopping Festival. Instant retail services, such as JD.com's AI-driven delivery as well as Meituan have reshaped consumption habits. For instance, the post-2000s generation has moved away from massive stockpiling, preferring a rational "buy-as-you-eat" approach. Cross-border e-commerce has also broken geographical barriers, allowing products like Southeast Asian fruits and European dairy products to enter Chinese homes with just a click.

What is driving the change?

This shift is driven by three things: rising income, changing mindsets, and supply-side innovation.

Rising national income is the fundamental driver: According to economic principles (Engel's Law), as people earn more, they spend a smaller percentage of their money on basic survival (like food) and more on development. A qualitative shift in consumption structure occurs when the Engel coefficient falls below 30 percent which represents a wealthy life. China's urban and rural residents' Engel coefficient reached 29.3 percent in 2025, signaling that the country has moved from "surviving" to "developing."

Meanwhile, evolved consumption mindsets have reshaped demand: The new generation of consumers prioritizes quality of life over mere ownership, focusing on health, experience and happiness, which directly upgrades what ends up in their shopping carts.

On the supply side, companies are stepping up. E-commerce platforms and logistics systems have matured, making it easier to buy and sell. Not to mention, enterprises keep innovating products and services to capture new trends: Home appliance firms launch smart and energy-efficient products, food companies focus on healthy and green offerings, cultural and tourism entities create personalized experiential products, and creative industries integrate traditional crafts with modern elements. This innovative supply not only meets emerging demands but also stimulates consumption potential, forming a virtuous cycle where demand drives supply and supply creates new demand.

Why does this matter for the economy?

The shift from buying goods to buying services reflects China's move toward high-quality economic development. The goal is no longer just speed or scale, but efficiency and quality of life. Once reliant on investment and exports, China's economic growth is increasingly driven by consumption, with services accounting for over 45 percent of total consumption. Although still below the 60 percent to 70 percent seen in OECD countries, the gap represents huge potential for future growth.

More importantly, this trend doesn't just help consumers, but also reshapes industries. Booming health consumption fuels the growth of the pharmaceutical and fitness sectors. The desire for experiences boosts the service industries, ranging from culture to tourism. And the widespread adoption of digital consumption accelerates the evolution of e-commerce, logistics big data, and AI industries, while simultaneously empowering the transformation of traditional industries.

Furthermore, the "buy global, sell global" nature of New Year shopping highlights the openness, inclusiveness and strong resilience of the Chinese market. As the world's largest consumer market, China offers vast opportunities for both domestic and global enterprises alike. This not only caters for Chinese consumers' growing needs but also deepens China's economic and trade cooperation worldwide, making the Chinese market a stabilizer for global economic growth.

Amid a complex and volatile international economic environment, the strong resilience and immense potential of China's consumer market provide solid support for the country's high-quality development and contribute positive momentum to a global economic recovery.

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