In early 2026, viral products like a plush toy—and behaviors such as speaking to pets through cameras or turning to AI chatbots for emotional support—highlighted the rapid rise of China’s “emotional economy.” Now a widely used buzzword and even referenced in government reports, the term describes consumption driven less by practical needs than by the pursuit of emotional experiences. According to the “China Emotional Economy Consumption Trends Insight Report (2025–2029)” released by iiMedia Research, the market reached 2.3 trillion yuan (US$ 340 billion) in 2024 and is projected to exceed 4.5 trillion yuan (US$ 660 billion) by 2029.
Emotional consumption spans areas such as pet companionship and AI companions (offering comfort and connection), as well as collectibles and fandom-related goods (enabling identity and self-expression). Its defining feature is a shift away from material utility toward fulfilling psychological and emotional needs.
Several forces are driving this trend. Rising stress and uncertainty in modern life are pushing individuals to seek relief and a greater sense of control. At the same time, evolving social dynamics—particularly the dominance of online interaction—have contributed to a growing sense of loneliness. Advances in digital technology further accelerate the trend by making emotionally driven consumption more immediate and accessible.
Younger consumers, especially Gen Z, are at the forefront: surveys show that over 90 percent recognize emotional value, and nearly 60 percent are willing to pay for it. Meanwhile, older adults—often referred to as the “silver generation” (typically aged 60 and above)—are increasingly participating as well, transforming emotional consumption into a cross-generational phenomenon.
Source: China Social Science Network, April 1, 2026
https://www.cssn.cn/skgz/bwyc/202604/t20260401_5978910.shtml