CHINA CONSUMER GOODS

The U.S. consumer goods sector continues to demonstrate robust interest and engagement in the Chinese market, as evidenced by strong interest and attendance at the 2024 China International Consumer Products Expo in Hainan (Expo) – the largest trade show of its kind in Southern China. The Expo, now in its fourth year, attracted over 370,000 attendees from 70+ countries and regions and hosted more than 4,019 brands this year. With participation from nearly 30 U.S. companies, the Expo highlighted a growing market and demand for high-quality products in the apparel, cosmetics, healthcare, and medical equipment industries.

Despite the challenges posed by high participation costs and limited B2B selling opportunities for new market entrants, the Expo offers a unique opportunity for established U.S. brands in key sectors (i.e., apparel, cosmetics, fashion, and healthcare) with existing awareness in China to strategically and directly showcase new products and services to Chinese consumers. However, the Expo is not as suitable for smaller, new-to-China U.S. companies due to relatively high exhibition and participation costs compared to other similar Chinese trade shows – such as the China International Import Expo in Shanghai – and a decreased focus on facilitating B2B engagements. To help U.S. companies better navigate the opportunities and challenges of the Chinese consumer goods market, the U.S. Commercial Service plans to develop a variety of value-added export promotion services and programs for interested U.S. companies during the 2025 China International Consumer Products Expo.

Despite near-term challenges to Chinese consumer spending and a slow post-pandemic economic recovery, China remains an important consumer goods market. Boasting a population of more than 1.4 billion, China is currently the world’s second largest consumer market, and according to a 2023 report by McKinsey & Company, China is projected to contribute an additional $1.3 trillion in retail sales over the next five years. Specific to South China, Hainan continues to actively promote and explore the use of various free trade policies – including duty-free luxury goods and the Hainan Boao Lecheng International Medical Tourism Pilot Zone – offering unique opportunities for U.S. consumer goods and healthcare companies to further explore the Chinese market.

For more information, please contact Office.Guangzhou@trade.gov.