China has just over 1.4 billion inhabitants, but the population has been shrinking since 2022: in 2025 there were 7.92 million births against 11.31 million deaths. That slowly changes what the consumer market looks like. Fewer young families, more spending on health, services, travel and premium products, and a middle class that has become more careful about price.
GDP per capita reached 99,665 yuan in 2025, roughly 13,900 US dollars, with the economy growing by 5.0%. China is no longer only the world’s factory: domestic consumption and technology now carry much of the growth, while manufacturing of electronics, machinery, electric vehicles and batteries remains the backbone.
The main imports are integrated circuits, crude oil and other mineral fuels, iron ore and metal ores, machinery, optical and medical equipment, and agricultural products such as soybeans. Consumer goods that do well are usually the ones that offer something local brands cannot copy quickly: proven quality, a health or safety claim, or a story that travels well online.
The obvious places to start are Shanghai as the financial and consumer capital, Beijing for government and media, Shenzhen for technology and manufacturing, and Guangzhou for trade. But a large part of the growth in consumer spending now comes from cities like Chengdu, Hangzhou, Wuhan and Xi’an, where there is less foreign competition and rents are lower.
Retail and supermarkets in China
Total retail sales of consumer goods reached 50.1 trillion yuan in 2025, an increase of 3.7%. Walmart China is the largest supermarket operator with 158.8 billion yuan in sales across 334 stores, followed by Yonghui Superstores and RT-Mart (Sun Art). The growth sits with membership and discount formats: Sam’s Club keeps opening stores and is heading for 76 in 2026, while around 720 conventional supermarkets closed their doors in the first half of 2025 alone.
Online is not a separate channel any more. Online retail sales came to 16.0 trillion yuan in 2025, up 8.6%, and physical goods bought online now account for 26.1% of all retail sales. Alibaba’s Freshippo, JD and Meituan compete on instant retail: local warehouses that deliver groceries and everyday products within the hour. For a foreign supplier that means your distributor needs both shelf space and a working presence on the platforms, including the livestream channels on Douyin and Xiaohongshu.
Because of the size of the country, few distributors cover all of China. Most exporters start with one region or one channel, prove that the product sells, and use that data to negotiate with the larger players later.

