China Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in china, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Consumer Goods
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In 2024, the momentum of China’s retail and consumer goods market slowed due to weak domestic demand and high base effect. According to China’s National Bureau of Statistics (NBS), total retail sales of consumer goods in 2024 reached approximately $6.8 trillion, marking a 3.5 percent year-on-year increase. Online retailing growth also slowed due to weak domestic demand, with total online retail sales hitting about $1.8 trillion, reflecting a 6.5 percent increase from the previous year. China’s imports of goods resumed momentum in 2024 after a 5.5 percent year-on-year decrease in 2023. According to the data released by China Customs, China’s imports of goods totaled approximately $2.59 trillion in 2024., marking a 1.1 percent year-on-year increase. The import demand for consumer goods such as clothing, fruits, and wine was relatively strong, with import values increasing by 5.6 percent, 8.6 percent, and 38.8 percent, respectively. Despite this, U.S. exports of consumer goods to China continue to evolve. Acc

Leading Sub-sectors

Cosmetics

China is the second-largest cosmetics market globally, with sales reaching $134.3 billion in 2023, reflecting a 4.8 percent increase from the previous year. The skincare segment dominates the market, driven by demand for anti-aging, hydrating, and sensitive-skin products. The cosmeceutical market, valued at $4.68 billion in 2023, is projected to grow at a CAGR of 3.9 percent, reaching $5.93 billion by 2030. Other key segments include makeup, scalp care, and dental care.

U.S. beauty and skincare exports to China totaled $565.4 million in 2023, down from $702 million in 2022, representing a 19.5 percent decline. This drop is attributed to shifting consumer preferences, increased competition from domestic brands, and stricter regulatory measures. Despite this decline, significant opportunities remain for U.S. brands, particularly in premium, niche, and science-backed skincare. Chinese consumers continue to perceive U.S. products as high-quality and safe, particularly in clinical skincare and dermatologist-recommended items.

Demand for functional skincare, including anti-aging, skin barrier repair, and sun protection, continues to rise, along with interest in clean beauty products featuring organic, vegan, and eco-friendly formulations. The men’s grooming market, covering skincare, haircare, and fragrances, is also experiencing rapid growth. Cross-border e-commerce (CBEC) platforms such as Tmall Global, JD Worldwide, and Douyin offer a strategic entry point for U.S. brands, allowing them to bypass complex regulatory hurdles and reach Chinese consumers more efficiently.

To navigate China’s regulatory landscape, U.S. companies must comply with the National Medical Products Administration (NMPA) classification system, which differentiates between general and special cosmetics. While general cosmetics can avoid animal testing with proper documentation, special cosmetics still require extensive safety assessments. Additionally, China enforces strict labeling and marketing regulations, prohibiting claims such as “medical-grade” or “FDA-approved.” Brands with strong R&D and a focus on emerging consumer trends are well positioned for success in this market.

Mother and Baby Products

Despite declining birth rates, China’s mother and baby products market continues to expand, driven by higher per capita spending on children. The sector reached $560 billion in 2023, growing at an annual rate of 7.6 percent. Infant formula and baby food form the largest segment, accounting for 32 percent of the market, followed by children’s apparel at 26 percent and diapers at 12 percent.

The United States remains a key supplier of baby products, known for its high standards in food safety, infant and maternity care, and early childhood development. U.S. companies have strong opportunities in premium infant formulas, maternity and baby supplements, hypoallergenic and additive-free skincare, maternity care products with safe ingredients, and scientifically designed developmental toys.

Online shopping is a rapidly growing sales channel, accounting for over 30 percent of total sales in 2023. Platforms such as Tmall, JD.com, and Douyin drive consumer purchases, while CBEC platforms enable U.S. brands to bypass certain regulatory hurdles and accelerate market entry.

To succeed in China, U.S. companies must navigate complex regulatory requirements, ensuring all products are labeled in Mandarin and comply with national safety standards. Infant formula requires approval from the State Administration for Market Regulation (SAMR), skincare products must be registered with the NMPA, and toys must meet China’s Compulsory Certification (CCC) standards. Partnering with local distributors and staying informed about regulatory updates are essential for market entry.

Despite regulatory challenges, China remains a promising market for U.S. mother and baby products. Companies that prioritize safety, quality, and innovation while leveraging e-commerce growth will find strong opportunities in this competitive sector.

Pet Care Products

China has emerged as the second-largest pet market globally, following the United States. In 2024, China’s pet (dog and cat) consumer market reached $41.9 billion, marking a 7.5 percent increase from 2023. According to a White Paper from the Pet Industry Branch of the China Animal Agriculture Association, pet food remains the largest segment, accounting for 52.3 percent of total sales, followed by pet medical products at 28.5 percent. Pet supplies and services represent 12.5 percent and 6.7 percent of the market, respectively. The United States remains China’s top supplier of pet food, according to USDA data.

Increased pet ownership during the COVID-19 pandemic accelerated the growth of China’s pet industry, making it one of the fastest-growing and most resilient sectors. The Chinese government has acknowledged the pet economy as an emerging driver of economic growth. Younger pet owners, who view pets as companions, are driving demand for premium pet food, supplements, grooming products, and health services. Additionally, there is a rising interest in smart and sustainable pet products, veterinary innovations, and personalized pet care solutions, presenting lucrative opportunities for U.S. brands.

To succeed in China, U.S. companies must implement a strategic approach, including proper trademark registration to protect intellectual property. Navigating regulatory requirements is crucial, particularly for pet food imports, which require approval from the Ministry of Agriculture and Rural Affairs (MARA) and the General Administration of Customs (GACC). Given the dominance of e-commerce, companies should develop strong online engagement strategies and consider collaborating with local partners or participating in trade shows to establish distribution networks.

Resources

  • China International Consumer Products Expo – Hainan, April 13-18, 2025

  • China Beauty Expo – Shanghai, May 12-14, 2025

  • Cosmoprof Asia – Hong Kong, November 11-14, 2025