China’s Guochao Trend Surges as Cultural Confidence Grows

China’s “Guochao” (national trend) consumption phenomenon is accelerating at a remarkable pace, with industry projections indicating the market will exceed 3 trillion yuan by 2028. Driven primarily by Gen Z and Millennial consumers who increasingly favor domestic brands that blend traditional Chinese aesthetics with modern design, the trend represents a fundamental shift in Chinese consumer behavior — one rooted in growing cultural confidence and supported by national policy.

What Is Guochao?

Guochao (国潮), literally meaning “national tide,” refers to a cultural and consumer movement in which Chinese consumers — particularly younger generations — gravitate toward domestically produced goods that incorporate traditional Chinese cultural elements, motifs, and aesthetics. The phenomenon spans fashion, toys, food and beverages, home goods, and digital products, with consumers choosing brands like Li-Ning or Anta Sports over Western competitors as a statement of cultural identity.

According to China.org.cn, the surge is particularly evident in the booming collectible toy market. In 2025, China’s domestic retail sales of trendy and collectible toys totaled 67.69 billion yuan (approximately $9.78 billion USD), marking a 45.4% year-over-year increase, according to the 2026 China Toy and Juvenile Products Industry Development Report.

Policy Backing and Market Projections

The trend has received explicit government endorsement. China’s “15th Five-Year Plan” (2026-2030) calls for cultivating new growth points in mid-to-high-end consumption and strengthening time-honored brands and domestic fashion trends, as reported by Xinhua News Agency. A report by iiMedia Research projects that the Guochao market will exceed 3 trillion yuan by 2028, underscoring the economic magnitude of this shift.

Gen Z at the Forefront

Demographic data from the National Bureau of Statistics of China reveals that consumers aged 44 and below account for 75.3% of Guochao consumer groups, with Gen Z viewing Guochao consumption as a cultural identity symbol.

“Consumers today want more emotional resonance and cultural identity in their spending,” said Xiong Haifeng, an associate professor at the School of Cultural Industries Management, Communication University of China, as quoted by Xinhua. This explains why manufacturers are moving beyond the “made-in-China” model of past decades to incorporate stronger cultural elements into their products.

Manufacturing Responds to Demand

The trend is reshaping China’s manufacturing sector. In Yiwu, Zhejiang Province — the world’s largest small commodity wholesale hub — local manufacturers have significantly increased investment in design capabilities. One accessory company designs approximately 100 bag charm products per month, with sales growing at an average rate of 20% per month and doubling during peak seasons.

“Manufacturers’ efforts to meet strong market demand have further encouraged improvements in quality and efficiency across the industrial chain, promoting transformation and upgrading of the industry,” said Dang Qiong, associate professor at the School of Journalism and Communication of Guangxi University, as reported by People’s Daily Online.

The IP Economy and Cultural Products

Domestic animated films have emerged as powerful drivers of Guochao-related consumer spending. The Chinese animated blockbuster “Nobody” launched more than 800 derivative products, driving total consumer sales to over 2.5 billion yuan. Data from the China Film Administration reveals that in 2025, every yuan spent on movie tickets generated approximately 15.77 yuan in related economic activity across cultural and creative industries, catering, and tourism.

Museums are also joining the trend. The Chengdu Museum in Sichuan Province has collaborated with popular IPs to reimagine a Han Dynasty figurine as “Fat Tiger,” a cartoon character familiar through WeChat stickers, developing derivative products including posters and short dramas.

“Integrating Guochao IP across culture, commerce and tourism can build sustainable consumption and help the trend evolve from a short-lived fad into lasting popularity,” said Xu Chao, head of the Cultural and Creative IP Committee of the China Advertising Association.

Fashion and Cultural Identity

The fashion industry has been a particular beneficiary of the Guochao shift. Once a niche segment, Guochao apparel — which incorporates traditional motifs into modern design — has gained broad public recognition. At the 2026 China International Fashion Week (Spring) held in Beijing, designers showcased collections highlighting distinctly Chinese aesthetics, drawing on intangible cultural heritage and regional traditions.

“Consumer demand for Guochao apparel is shifting from trend-chasing to cultural identity,” said Xie Fangming, full-time vice chairman of the China Fashion Association. Sun Ruizhe, head of the China National Textile and Apparel Council, noted that the trend is driving the rapid emergence of more differentiated and culturally distinctive fashion products.

Implications and Outlook

The Guochao phenomenon represents more than a consumer fad — it signals a structural transformation in China’s economy from “Made in China” to “Created in China.” For global brands, the trend may erode the premium that foreign labels have traditionally commanded. For Chinese manufacturers, it offers an opportunity to capture greater value through brand ownership and design innovation.

While questions remain about the long-term sustainability of the trend and its intersection with rising nationalism, the convergence of cultural confidence, policy support, and industrial capability suggests that Guochao is a lasting shift in how Chinese consumers relate to their heritage — and to the products they choose to buy.