Policy Support and Innovation: Unleashing New Momentum in China’s Consumer Market

TCP Group

Executive Summary

Currently, the global economic landscape is undergoing profound transformation and adjustment. The rise of trade protectionism and unilateralism, as well as the impact of geopolitical conflicts, has created a complex and intertwined international trade environment. Against this backdrop, the global economy faces multiple uncertainties, and China’s sustainable economic development confronts unprecedented challenges. Traditionally, China’s economic growth has heavily relied on investment and exports, but amid today’s volatile international situation, the limitations of this model have become increasingly evident, making it difficult to sustain continued economic growth. Consequently, identifying new drivers of growth has become the key to advancing China’s economic development.

Consumption, as one of the “three main drivers” of economic growth, has become the central engine in China’s economic transition. Consumption’s contribution to GDP has surpassed 60%, serving as a foundational support for high-quality development. With the rise of the middle-income demographic and Generation Z as dominant consumers, the consumer market is undergoing structural changes—shifting from basic living needs to demands for quality and personalization, and extending from goods consumption to service consumption, thus forming a multi-tiered and diversified consumption ecosystem.

The consumer goods industry is a pillar of the national economy, directly tied to people’s well-being and accounting for over 10% of GDP. Its high-frequency, rigid demand characteristics and coverage of the entire value chain endow it with tremendous economic value. Under digital empowerment, the consumer goods industry is accelerating its evolution toward intelligence and scenario-based consumption. New business models such as live-streaming e-commerce and on-demand retail are growing rapidly, continuously unleashing consumer vitality.

Beyond its multiplier effect in driving economic growth, consumption plays an important role in raising household incomes, optimizing social security systems, and improving commercial infrastructure. Data show that every RMB 1 trillion increase in China’s consumer market triggers RMB 2.3 trillion of investment upstream and downstream and creates 4 million jobs, underscoring the impact of consumption on economic development.

In the consumer goods sector, the Red Bull product series under TCP Group pioneered the functional beverage category in multiple countries, owing to a unique product positioning and marketing strategy. From the moment it hit the market, it met consumers’ needs for refreshment and energy boosting in various scenarios such as work and sports, achieving tremendous success in China and becoming a leading brand in the functional beverage market. Red Bull’s success demonstrates the decisive role of innovation, technology, and policy support in industry development. Through continuous product innovation, the creation of new consumption scenarios, and technological advances, Red Bull has not only enhanced brand influence but also improved production efficiency and reduced costs. Meanwhile, Red Bull has made positive contributions in green development, marketing, and building consumer infrastructure, setting a positive example for the industry’s progress.

However, the consumer goods industry faces fierce market competition, rapidly changing consumer demands, and the challenges of online–offline integration. To promote healthy growth in the sector, the government should introduce favorable policies by drawing on international experience and adapting to China’s market characteristics, thereby driving policy innovation.

This study aims to combine international experiences with the realities of the Chinese market and to propose policy recommendations—based on the case of Red Bull from TCP Group—for advancing the consumer goods industry. The goal is to provide references for government policymaking, promote high-quality development of China’s consumer goods industry, energize consumption, and boost China’s economic growth. Four key policy recommendations are proposed: stabilizing the policy environment, spurring corporate innovation, deepening international cooperation, and strengthening intellectual property and consumer protection.

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