On October 25, 2025, a giant inflatable Labubu toy was spotted floating on the water at Victoria Harbour in Hong Kong. The trend of emotional consumerism has gained traction in China, where consumers are increasingly prioritizing emotional fulfillment in their purchasing decisions, moving away from traditionally pragmatic choices.
Data indicates that Chinese consumers are spending more on goods and experiences that resonate emotionally, including designer toys and unconventional gifts, rather than obligatory items like traditional festive foods. Analysts suggest this shift is evident in consumer behavior during the recent Chinese New Year, where spending on travel and cosmetics increased significantly compared to previous years.
The concept of China’s “emotional economy” emerged publicly in 2024, highlighted by the popularity of Pop Mart’s Labubu figurines. Experts note that consumers are now seeking “feelings” and a “sense of connection” through their purchases, suggesting a broader evolution in consumer norms towards discretionary spending.
Market research from iiMedia Research Center estimates that China’s emotional economy could reach a valuation of 4.5 trillion yuan ($655 billion) by 2029. Although there are varying views on what drives this growth, many analysts relate it to stress and rising living costs, alongside a cultural shift toward individual fulfillment.
Some experts attribute this shift to the financial cushioning of younger consumers, shaped by China’s One-Child policy, which may provide them greater financial freedom compared to previous generations. Other macroeconomic factors, including the increasing quality of consumer goods, are also cited as contributing to this trend.
Despite a general slowdown in consumer spending growth—rising only 2.3% in 2025 compared to prior years—interest in spending on social and entertainment experiences has surged. This contrast has drawn attention from policymakers and businesses in China, who are now reevaluating their strategies to cater to the emotional economy.
As the trend continues to evolve, it signifies a significant change in the landscape of consumer behavior in China, reflecting a desire for emotional connection and personal fulfillment amidst broader economic challenges.
Source: Reported based on publicly available information from www.cnbc.com.
