Export opportunity – China: green and sustainable consumer products

China - green and sustainable consumer goods opportunity summary

China’s fashion industry is increasingly focused on sustainability. All listed companies in China are required to file ESG (environmental, social and governance) reports, as the country shifts towards being a low carbon economy.  As awareness of the climate emergency grows, attitudes towards sustainable fashion are changing in major Chinese cities, presenting an opportunity for suppliers of sustainable consumer products.   

According to the Green Guilt Report 2022, published by Chinese focused consulting firm Daxue Consulting, 77% of surveyed consumers are willing to pay 5% to 20% extra for sustainable fashion products, with up to 20% of upper-class Chinese consumers open to paying double.  

Chinese consumers are increasingly interested in spending on health and wellness products, as well as essentials such as casual apparel, skincare, and home products — all trends that Scottish companies are well placed to respond to. 

Scale of export opportunity

Chinese consumers will account for nearly 50% of the global luxury market — valued at €320 to €330 billion EUR — by 2025. 

In 2022, China’s luxury goods market achieved transaction volumes of $135 billion (956 billion Yuan), representing a significant share of the global market.  

Company suitability

Scottish companies best positioned to win this type of business will fit with some of the following:

• Companies that are ambitious and can invest in long-term strategies for developing a presence in the Chinese market 
• Brands in fashion and accessories, home and interior, and sports and personal care 
• Product categories with unique selling points (for example — heritage, craftsmanship and innovation) 
• Companies that already trade internationally