Millennials, also known as Generation Y, are people born between 1981 and 1996. In 2023, the oldest millennial will be 42 years old and the youngest will be 27 years old. There are over 350 million millennials in China, which is 25 percent of the total population. They tend to be more educated than previous generations, with 25 percent holding a bachelor’s degree or higher. According to the 2019 Shanghai Youth Employment Status Report, young adults between 16 and 35 in China earn an average monthly salary of 7,342 Chinese yuan, which is equivalent to approximately USD 1,018.
Chinese millennials were born in a time of significant economic growth and have experienced rapid advancements in technology. They enjoy a time of endless opportunity and optimism in their country. They are a significant factor in China’s growing consumption, which has implications worldwide. By 2024, Chinese customers are expected to account for 40% of global luxury goods sold, and 48% of Chinese luxury consumers in 2019 were aged under 30.
Millennials in China enjoy being single
Chinese millennials’ interest in the luxury sector is increasing, but they struggle with the high cost of living, making it more challenging to start families and raise children. The number of new marriages in China has significantly decreased from 12.2 million couples in 2015 to 7.6 million couples in 2021. Twenty percent of China’s single population is over 20, with half of this population aged between 20 and 29. Millennials are a significant part of the singles economy, characterised as convenience and leisure seekers who raise their quality of life and spend on higher-quality food or home products. The rising cost of living and fear of losing financial freedom are stopping many Chinese women from getting married, preferring to enjoy luxury, travel, and entertainment, which allows them full control over their lives and a higher quality of life.
Growth of the pet food market
Despite the Chinese government’s efforts to encourage citizens to have more children, Chinese millennials are reluctant to get married and have kids. Instead, they prefer to adopt pets, leading to a significant increase in the number of pets in the country. A PwC report shows that single, well-educated working women are the primary pet owners, with 50% of them being millennials. These pet owners have a strong emotional attachment to their pets and are willing to spend on specialized pet products and healthcare. Consequently, the pet food market is growing while the baby food market is declining, as seen by Nestle Purina PetCare’s double-digit growth, while infant nutrition sales decreased in China !
Chinese millennials’ perception of money is shifting
China’s millennials, battered by competitive educational systems and low-paying jobs, are experiencing burnout and are part of the “lying flat” movement, which has led to less focus on work and more on self-fulfillment. As a result, there is a growing interest in luxury products as social status symbols and rewards for overworking. Millennial parents focus on buying higher-quality, safer products for their children, with trendy “spicy moms” leading the way. Premium brands and luxury goods for children are now a growing sector in China, with the country hosting the largest number of Burberry kids’ stores globally.
Millennials and Gen Z account for most of the luxury goods consumption
China has contributed over half of global luxury spending growth from 2012-2018, with the post-90s generation now spending around 25,000 RMB annually on luxury goods; reflecting their optimistic outlook for the future, higher disposable income, and pursuit of a more premium lifestyle. Younger consumers now view luxury consumption in a more sophisticated manner, prioritizing design, fabric, and the production process rather than brand. Foreign luxury brands from France and Italy are favored, but high-end Chinese brands are gaining popularity with one in ten post-90s consumers choosing them. Millennials aged 30 to 40 have increasing purchasing power, willing to save time by spending money, more reliant on well-known brands and flaunting their status through conspicuous consumption.
Millennials in China are increasingly relying on mobile e-commerce
Chinese millennials make up the largest part of the country’s 1.02 billion internet users and are highly adept at social media and e-commerce platforms. With the rise of the stay-at-home economy during the pandemic, the mobile shopping industry became highly competitive, and online shopping was used by 79.1% of Chinese internet users in 2021. Popular shopping apps include Taobao, Pinduoduo, and JD. Fresh food e-commerce is an emerging category with high demand, reaching 564 billion yuan in 2021 and projected to reach 818.7 billion yuan in 2023, according to Mob Research Institute.
Chinese millennials pursue a healthy lifestyle
The pandemic has increased Chinese millennials’ focus on adopting a healthier lifestyle and prioritizing health and hygiene concerns, according to McKinsey. Health and family safety issues accounted for half of Chinese consumers’ top 10 concerns in 2021. In response, consumers are spending more on fresh food, focusing on immune system improvement through exercise and healthy eating, and prioritizing hygiene when choosing a store to make a purchase. A significant percentage of consumers (65%) claim to care more about product safety after the COVID-19 pandemic.
A tough problem Chinese millennials have to face is the aging of the population. Being born under the one-child policy means that they are the sole caretaker of their aging parents. This is because they do not have siblings to share the burden of taking care of the elderly of the family which puts a lot of pressure on millennials. For instance, they have to find ways to pay for their own expenses and their parents rising medical spending as they age. Besides, cities are struggling to provide enough nursing home beds for the increasing aging population.
Understanding Chinese Millennials spending behavior
More than just a response to the COVID-19 outbreak, Chinese millennials’ spending habits increasingly adapt to the stay-at-home economy due to its convenience.
Millennials face pressure such as long hours at work and sole responsibility to take care of their aging parents. Thus, they seek convenience and efficiency in purchases and started to make conscious purchases to boost a healthy lifestyle.
Many Chinese women prefer to remain single to maintain financial freedom and a higher quality of life. This led to a growth in the pet food market as they opt to adopt pets instead of having children.
Millennials’ perception of money is shifting, with a focus on self-fulfillment over traditional social goals.
Millennial consumers in lower-tier cities are less price-sensitive than those in higher-tier cities. They also value social engagement of referral programs or KOLs/KOCs’ recommendation and special editions more.
Shifting perceptions of money among Chinese millennials
Millennials, also known as Generation Y, are people born between 1981 and 1996. In 2023, the oldest millennial will be 42 years old and the youngest will be 27 years old. There are over 350 million millennials in China, which is 25 percent of the total population. They tend to be more educated than previous generations, with 25 percent holding a bachelor’s degree or higher. According to the 2019 Shanghai Youth Employment Status Report, young adults between 16 and 35 in China earn an average monthly salary of 7,342 Chinese yuan, which is equivalent to approximately USD 1,018.
Chinese millennials were born in a time of significant economic growth and have experienced rapid advancements in technology. They enjoy a time of endless opportunity and optimism in their country. They are a significant factor in China’s growing consumption, which has implications worldwide. By 2024, Chinese customers are expected to account for 40% of global luxury goods sold, and 48% of Chinese luxury consumers in 2019 were aged under 30.
Millennials in China enjoy being single
Chinese millennials’ interest in the luxury sector is increasing, but they struggle with the high cost of living, making it more challenging to start families and raise children. The number of new marriages in China has significantly decreased from 12.2 million couples in 2015 to 7.6 million couples in 2021. Twenty percent of China’s single population is over 20, with half of this population aged between 20 and 29. Millennials are a significant part of the singles economy, characterised as convenience and leisure seekers who raise their quality of life and spend on higher-quality food or home products. The rising cost of living and fear of losing financial freedom are stopping many Chinese women from getting married, preferring to enjoy luxury, travel, and entertainment, which allows them full control over their lives and a higher quality of life.
Growth of the pet food market
Despite the Chinese government’s efforts to encourage citizens to have more children, Chinese millennials are reluctant to get married and have kids. Instead, they prefer to adopt pets, leading to a significant increase in the number of pets in the country. A PwC report shows that single, well-educated working women are the primary pet owners, with 50% of them being millennials. These pet owners have a strong emotional attachment to their pets and are willing to spend on specialized pet products and healthcare. Consequently, the pet food market is growing while the baby food market is declining, as seen by Nestle Purina PetCare’s double-digit growth, while infant nutrition sales decreased in China !
Chinese millennials’ perception of money is shifting
China’s millennials, battered by competitive educational systems and low-paying jobs, are experiencing burnout and are part of the “lying flat” movement, which has led to less focus on work and more on self-fulfillment. As a result, there is a growing interest in luxury products as social status symbols and rewards for overworking. Millennial parents focus on buying higher-quality, safer products for their children, with trendy “spicy moms” leading the way. Premium brands and luxury goods for children are now a growing sector in China, with the country hosting the largest number of Burberry kids’ stores globally.
Millennials and Gen Z account for most of the luxury goods consumption
China has contributed over half of global luxury spending growth from 2012-2018, with the post-90s generation now spending around 25,000 RMB annually on luxury goods; reflecting their optimistic outlook for the future, higher disposable income, and pursuit of a more premium lifestyle. Younger consumers now view luxury consumption in a more sophisticated manner, prioritizing design, fabric, and the production process rather than brand. Foreign luxury brands from France and Italy are favored, but high-end Chinese brands are gaining popularity with one in ten post-90s consumers choosing them. Millennials aged 30 to 40 have increasing purchasing power, willing to save time by spending money, more reliant on well-known brands and flaunting their status through conspicuous consumption.
Millennials in China are increasingly relying on mobile e-commerce
Chinese millennials make up the largest part of the country’s 1.02 billion internet users and are highly adept at social media and e-commerce platforms. With the rise of the stay-at-home economy during the pandemic, the mobile shopping industry became highly competitive, and online shopping was used by 79.1% of Chinese internet users in 2021. Popular shopping apps include Taobao, Pinduoduo, and JD. Fresh food e-commerce is an emerging category with high demand, reaching 564 billion yuan in 2021 and projected to reach 818.7 billion yuan in 2023, according to Mob Research Institute.
Chinese millennials pursue a healthy lifestyle
The pandemic has increased Chinese millennials’ focus on adopting a healthier lifestyle and prioritizing health and hygiene concerns, according to McKinsey. Health and family safety issues accounted for half of Chinese consumers’ top 10 concerns in 2021. In response, consumers are spending more on fresh food, focusing on immune system improvement through exercise and healthy eating, and prioritizing hygiene when choosing a store to make a purchase. A significant percentage of consumers (65%) claim to care more about product safety after the COVID-19 pandemic.
A tough problem Chinese millennials have to face is the aging of the population. Being born under the one-child policy means that they are the sole caretaker of their aging parents. This is because they do not have siblings to share the burden of taking care of the elderly of the family which puts a lot of pressure on millennials. For instance, they have to find ways to pay for their own expenses and their parents rising medical spending as they age. Besides, cities are struggling to provide enough nursing home beds for the increasing aging population.
Understanding Chinese Millennials spending behavior
More than just a response to the COVID-19 outbreak, Chinese millennials’ spending habits increasingly adapt to the stay-at-home economy due to its convenience.
Millennials face pressure such as long hours at work and sole responsibility to take care of their aging parents. Thus, they seek convenience and efficiency in purchases and started to make conscious purchases to boost a healthy lifestyle.
Many Chinese women prefer to remain single to maintain financial freedom and a higher quality of life. This led to a growth in the pet food market as they opt to adopt pets instead of having children.
Millennials’ perception of money is shifting, with a focus on self-fulfillment over traditional social goals.
Millennial consumers in lower-tier cities are less price-sensitive than those in higher-tier cities. They also value social engagement of referral programs or KOLs/KOCs’ recommendation and special editions more.
