Decoding the "new normal": How exporters can unlock growth in China’s evolving consumer market

As the fresh produce industry navigates an increasingly complex global landscape, understanding the intricate pulse of the Chinese consumer has never been more critical. 

At the 7th Annual Global Cherry Summit held in Santiago, Chile, on April 21, David Rao, Managing Director at market insights firm Ipsos China, offered a sobering yet strategic roadmap for international exporters. 

The key, he explained on the main stage, is to opt for precise, consumer-focused campaigns in lieu of mass marketing efforts. 

For the Ipsos executive, success in this market now requires a nuanced understanding of evolving consumer behaviors, where emotional connection, affordability, and digital-first accessibility have become the new hallmarks of value.

Redefining the Chinese consumer in the face of macroeconomics

In the context of an economic crisis, Rao described a post-pandemic "new normal" in China defined by financial caution, deflationary pressures, and shifting demographic structures. 

“The government is still working on different policies to stimulate the economy—but it is a tough task,” Rao explained. “Chinese consumers’ confidence level is still at a very low level; unemployment is rising, and the domestic income levels are growing very slowly. So all in all, that has become a significant problem.”

But it’s not all dark skies ahead. While the macro environment remains challenging, the food and beverage sector, and fresh fruit in particular, continues to hold significant growth potential, according to the expert. 

“In the past, the food and beverage category was only to eat and to drink,” Rao said. “But now, Chinese consumers are more into wellness, so when they get wealthier, they put more expectations into those products. They have more precise needs, diversified needs.”

Different asks from different demographics

During his presentation, Rao emphasized China’s dramatic demographic shift in recent years, marked by later marriages, a rise in single-person households, and smaller family sizes. This, he said, is one of the most powerful driving forces behind changing consumption habits. 

To capture growth, brands must tap into specific, emerging segments like Gen Z, which, Rao explained, is driven by "micro-happiness" moments.

“They don't have a lot of pocket money, but they use it up—they use their salaries to buy the daily happiness in those small micro-moments; to have an indulgent moment to themselves,” he said. 

The executive urged marketers to seize the opportunity to meet consumers’ emotional needs in those instances of indulgence through value-added, premium products that bring instant gratification and satisfaction. 

But Gen Z is also the start. Similarly, the "silver-haired" demographic represents a massive, often-overlooked opportunity, Rao said. Unlike previous generations, this cohort is well-educated, tech-savvy, and financially secure, actively seeking high-quality products to reward themselves after years of hard work. 

Furthermore, the rise of lower-tier cities in China has created a "small money, extra time" dynamic. With lower housing costs and more leisure time compared to their counterparts in high-tier cities, residents of tier-two and tier-three cities are emerging as fertile ground for brands that can successfully bridge the gap between high-tier trends and local, social-heavy consumption patterns.

The path forward: Product innovation and omnichannel strategy

In a saturated market where thousands of new SKUs launch annually, product differentiation is the ultimate challenge. 

Rao emphasized that even though they’re indulgent and high-value seekers, Chinese consumers are increasingly rational, always balancing price with quality. This translates into a simple premise: China will pay premium prices for premium products, but anything less than up to par will not make the cut. 

“They have a more sophisticated concept about health—they want food and beverages to be healthy, to cater to precise nutritional needs, and to be endorsed by different kinds of scientific certifications,” Rao explained.

As a result, exporters must pivot from selling merely for basic consumption to selling for "emotional value" and health. Only this will justify a high price point in an inflationary, cautious environment.

The traditional reliance on mass marketing and physical retail is insufficient, so diversifying sales channels is equally vital, the Ipsos expert said. 

The Chinese market is highly fragmented, which, in turn, has heightened consumers’ expectations for convenience. Catering to this market requires a strategy that integrates content-driven social commerce, such as TikTok, Rao explained, with O2O (online-to-offline) services that promise 30-minute delivery. 

By embedding products into niche "self-indulgent" scenarios and leveraging the massive reach of emerging discount snacking stores, exporters can build the necessary anchors in consumers' hearts. 

As Rao concluded, while the recovery in China will take time, persistent, precise adaptation to these changing behaviors will be the difference between stagnating and thriving in the coming years.

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