China’s New Year Spending Soars Boosting Consumer Market in 2026

As the Spring Festival approaches, China is witnessing a notable surge in consumer spending, propelled by strong domestic demand across various sectors including shopping for New Year goods, travel, and dining. With the implementation of several government policies aimed at stimulating consumption, this year's festivities are poised to unlock significant spending potential, laying a solid foundation for the consumer market in 2026.

The bustling atmosphere at the 30th Old Beijing New Year Goods Fair held in the Chaoyang district highlights the excitement surrounding the holiday. Consumers eagerly purchased an array of New Year decorations, fresh fruits, and regional specialties, emphasizing the festive spirit and robust consumer engagement.

Local resident Liu was seen carrying multiple shopping bags filled with food, Spring Festival couplets, and lanterns. Liu expressed to the Global Times that the fair allowed him to acquire all of his Spring Festival essentials while reliving the joy of visiting street fairs from his youth.

Data from Chinese e-commerce platform JD.com indicates a remarkable increase in interest regarding New Year goods since the launch of the New Year Goods Festival on January 25. There has been a year-on-year increase of over fourfold in search volumes, with red apparel, horse-themed ornaments, decorations featuring the character fu, and assorted gift boxes emerging as favorites among consumers.

Citrus fruits, especially those from Guilin in the Guangxi Zhuang Autonomous Region, have demonstrated popularity during the Spring Festival. Lalamove, a prominent intra-city freight platform, reported a 48.5 percent year-on-year rise in orders from Guilin during the last quarter of the previous year, indicating a strong demand leading up to the holiday.

Reservations for family reunion dinners at hot pot chain Haidilao are also on the rise as the Spring Festival holiday approaches. To accommodate the surge in demand, more than 1,000 Haidilao locations will remain operational on New Year's Eve, with over 1,200 stores open on Lunar New Year's Day.

The Spring Festival, recognized as the most important traditional holiday in China, typically catalyzes a peak in domestic consumption driven by family gatherings, dining, and gift-buying. In anticipation of this festive period, the government has introduced a series of initiatives designed to further boost domestic demand.

Beginning February 15, China will initiate a special shopping campaign aimed at enhancing consumer spending and enriching cultural life, as announced by the Ministry of Commerce. This initiative will include various activities such as festive dining promotions, discounted home appliances, and expanded transport capacity.

Moreover, regions throughout China are promptly adopting measures to enhance consumer spending. For instance, Jining city in East China's Shandong Province has introduced a new method for calculating car subsidies to better reflect consumer needs and invigorate automobile market activity.

"This year's consumption promotion activities display a unique collaborative spirit among government entities and businesses, ensuring thorough engagement across multiple sectors," stated Zhang Yi, CEO of the iiMedia Research Institute. "The strategy aims to blend policy measures with promotional activities to optimize consumption potential and foster a vibrant festive environment."

Zhang further noted that domestic demand continues to play a pivotal role in driving economic growth, and the government's efforts to enhance consumer spending during the Spring Festival will significantly unlock consumption potential, setting a promising outlook for the consumer market throughout 2026.

New consumption patterns driven by technology and innovation have emerged over the past year, creating fresh growth opportunities in the sector. Yang Delong, chief economist at First Seafront Fund, emphasized that the evolution of 'Made in China' into 'China smart manufacturing' signifies a transition toward a more sophisticated consumption landscape, emphasizing high-quality economic development.