Understanding consumer trends during the Chinese New Year period is crucial for CPGs to meet market demands and achieve their own growth. Here are the key consumption trend characteristics for the Year of the Dragon Spring Festival market:

Younger Generations Taking Lead in New Year Purchases In recent years, the purchasing power of younger demographics has been gradually restored. According to Kantar Worldpanel’s latest report, individuals aged 18-35 will be the main decision-makers for purchases. During the Chinese New Year Festival, sales from young families (young singles/couples and young families with children) account for over 40% of total sales, with higher average spending.

As the most active group on the internet, young families tend to gather product information and reviews online to gain shopping insights and recommendations. They plan ahead for the holidays, search for popular New Year’s lists, and festive gift box packaging.
When giving gifts, they consider the recipient’s interests, age, gender, and occupation, choosing gifts that are both appealing and practical. Traditional Chinese liquor ranks first in gift-giving categories, with sales increasing by 13.7% during the 2023 Spring Festival among young families.

Additionally, with the continuation of health demands, liquid milk and nutritional supplements are appearing more frequently on the shopping lists of young families during the Spring Festival.
Whether there will be new changes in gift-giving consumption during the 2024 Spring Festival is worth CPGs’ attentions.

E-commerce has become the main channel for consumers to purchase New Year goods, leading the market share for the past three years with continuous expansion. During the 2023 Spring Festival, e-commerce sales increased by 7.8% year-on-year, demonstrating strong growth momentum. The 2024 Spring Festival’s market, E-commerce remains the main battlefield for CPGs.

In addition, small supermarkets in neighborhood channels also play an important role in New Year purchases, with sales continuing to grow over the past three years, reaching a year-on-year growth rate of 14% during the 2023 Spring Festival.
Many consumers prefer to make last-minute purchases and are willing to buy New Year goods at nearby small supermarkets to experience the festive atmosphere. To attract these consumers, exquisite packaging and prominent promotional displays have become indispensable.

Diversity, personalization, and convenience have become the key themes for Spring Festival sales in the fast-moving consumer goods market. To gain an advantage during the Chinese consumers’ most valued Spring Festival of the year Dragon, capturing new consumer demands and aligning with the latest trends in different product categories are crucial strategies for manufacturers to win the first battle of the Dragon Year.