(Yicai) June 18 -- China's consumer market is expected to post another year of modest growth in 2026, largely unchanged from last year, as shoppers increasingly prioritize value for money while demographic shifts and evolving retail channels continue to reshape the country’s fast-moving consumer goods market, according to a new report.

China is entering a more mature stage of development with slower growth after a long period of rapid population and income growth, according to the China Shopper Report 2026 recently released by US management consultancy firm Bain & Company and UK consumer data firm Worldpanel by Numerator.

The market is facing multiple challenges, including a growing trend of consumers switching to lower-cost alternatives and becoming more cautious in their spending, the report said. Meanwhile, ongoing changes in consumer demographics and household structures are expected to significantly influence the growth drivers and development path of the fast-moving goods industry over the next decade.

There are approximately 320 million people in China aged 60 and above, while single-person households account for nearly one quarter of all households, according to the report. Driven by these structural changes, consumers are increasingly focused on value for money. These shifts are also having a significant impact on brands' product innovation, packaging specification strategies, pricing structures and sales channel selection.

Online promotional events such as the 618 Shopping Festival in June have been generating less attention each year and appeared even quieter this year, said Deng Min, senior global partner and chairman of consumer goods and retail business in China at Boston-based Bain. "The ability of major sales promotions to drive consumer spending continues to weaken. This is actually a good thing for the consumer market, as it indicates that purchasing behavior is becoming more normalized," he said.

"Artificial intelligence is playing an important role in areas where consumers face significant information gaps, such as pharmaceuticals,” Deng said. “It can help consumers compare the differences between products and provide purchasing recommendations. This role will become increasingly important in the future and is expected to expand across a wider range of product categories."

Editor: Kim Taylor