China's services consumption is not only rebounding but evolving rapidly, becoming a key driver of overall consumption growth, according to a report released by the China Institute for Reform and Development.

The Hainan-based think tank published the report on Monday during this year's China International Consumer Products Expo, the country's only national-level exhibition focused on consumer goods, which is being held in the tropical island province.

The report forecasts that by 2030, the per capita services consumption of China's urban and rural residents could exceed 20,000 yuan (about 2,773 U.S. dollars), accounting for more than half of total consumption. The shift toward a services-oriented consumer society is expected to drive sustainable economic growth and transform consumption patterns.

Services consumption has become a propeller of goods consumption, and a "goods-like services" trend is gaining momentum across the country, said Chi Fulin, head of the think tank.

The report shows that traditional sectors are leading the recovery. Established go-tos for fun and relaxation, such as ski holidays and blockbuster films, are back in full swing.

Winter tourism continues to gain popularity, particularly during peak travel periods. During the 2025 Spring Festival holiday, a total of 17.23 million visits were recorded across 934 ski resorts nationwide -- a 10 percent increase from the previous year. For the 2024-2025 winter season, the number of people engaged in ice and snow tourism in China are estimated at 520 million.

Earlier this year, China's film industry also made a notable comeback. The 2025 Spring Festival box office hit a record 9.51 billion yuan, with 187 million moviegoers nationwide. Daily box office sales also reached new highs during the holiday season. The animated film "Ne Zha 2" made history by becoming the first Asian film to break into the global top five and top the global animation box office.

While classic forms of services consumption like films and tourism continue to thrive, a new wave of digital experiences, led by generative artificial intelligence (AI), is rapidly reshaping China's consumer landscape.

According to the report, generative AI is enhancing and upgrading the consumer-end user experience as it is integrated into common internet applications, including instant messaging platforms, office software, and online customer service and creative tools.

In December 2024, approximately 331 million people in China reported that they were aware of generative AI products, and about 249 million said they had used them. This surge in public engagement reflects the technology's growing presence in everyday digital life, as well as its expanding influence on consumption patterns.

Jiang Ying, chair of Deloitte China, anticipates that China will leverage its strength in rapid technological innovation further to boost demand. "China encourages the integration of emerging technologies like AI to enhance consumer experiences and create new consumption scenarios," she added.

In March, China made public a plan for special initiatives to increase consumption, as the world's second-largest economy moves to make domestic demand the main engine and anchor of economic growth. The plan highlights services consumption quality enhancement.

Chi emphasized that the next five to 10 years will be a critical period for China's economic growth. He suggested that significant investments in people should be made to transform services consumption into a major force in the economy, making consumption a critical engine of sustained economic growth.