Foreign firms eye fresh opportunities in China's push to boost consumption

BEIJING, March 24 (Xinhua) -- As China steps up efforts to improve domestic consumption, multinational companies are increasingly positioning themselves to tap what they see as one of the world's most significant sources of future growth.

This trend was on display at the just concluded China Development Forum (CDF) 2026, an annual event where business leaders gathered to explore strategies for capturing opportunities in the country's sprawling market.

The strategic importance of China's domestic demand has been underscored in policy documents for 2026 and beyond. In the outline of China's 15th Five-Year Plan (2026-2030), the country aims to "achieve a notable increase in household consumption as a share of gross domestic product, making domestic demand a more prominent economic driver" over the next five years.

For foreign companies, this signals a widening range of avenues to engage Chinese consumers and integrate into the country's evolving market ecosystem.

"China's latest five-year blueprint places a clear emphasis on expanding high-quality consumption, accelerating innovation and boosting domestic demand, which closely align with PepsiCo's own strategic focus," said Ramon Laguarta, the company's chairman and CEO.

In China, the global food and beverage giant now operates more than 70 farms, over 50 beverage bottling plants, 10 food manufacturing facilities and a research and development center designed to understand local consumer preferences.

"We see ourselves not just as a participant in the Chinese market, but as a long-term partner, investor and co-creator in China's next phase of development," Laguarta added.

Such robust engagement from foreign firms reflects the broader strength of China's consumer market. In 2025, the country's retail sales of consumer goods exceeded 50 trillion yuan (about 7.25 trillion U.S. dollars) for the first time. This strong momentum has continued into 2026, as the figure in the first two months of the year went up 2.8 percent year on year, up 1.9 percentage points from December 2025.

Experts highlighted the services sector as a particularly robust growth driver, fueled by an expanding middle-income population.

"New types of consumption, green consumption and services consumption are projected to become long-term engines of growth," said Jeff Wu, vice chairman of KPMG China. "They are also a key source of incremental revenue for multinational companies."

Foreign firms are taking note. Rosewood Hotel Group, a global ultra-luxury hospitality brand, has observed growing demand for experience-driven travel in China.

"Rising demand for cultural immersion, wellness and emotionally resonant experiences plays to Rosewood's core strengths and philosophy," said Sonia Cheng, CEO of Rosewood Hotel Group.

She noted that China's policy focus on boosting its tourism sector presents meaningful opportunities for the company's businesses while reinforcing its confidence in the market.

For many global companies, China is no longer an option but a necessity, given its scale, demand for innovation, and diversified consumption structure.

"The Chinese consumer is very discerning. They expect high-quality and innovation, and that's why I love being part of this market," said Joanne Crevoiserat, CEO of Tapestry, a U.S.-based fashion and luxury company.

She explained that delivering high-quality products and cutting-edge innovation in China not only meets local expectations but also strengthens the company's business globally.

Looking forward, the CEO said the company has bold growth ambitions in the Chinese market. "We see opportunities to expand not just in tier-one and tier-two cities, but beyond," she said.