As a core pillar of China’s manufacturing economy, the home appliance sector in 2025 was marked by stability and resilience. Data from the National Bureau of Statistics show that total revenue reached RMB 1.97 trillion, largely unchanged from a year earlier, while overall profits edged down slightly. Despite pressure on margins from external headwinds, policy support helped the industry maintain its scale at a high level. The performance points to a sector actively adjusting as it transitions toward higher-quality growth, while quietly building momentum for its next phase of development.
Domestic Market
In 2025, the expanded “trade-in” program became a key policy lever to shore up domestic demand. Strong government incentives drove a sharp rebound in the market early in the year. Data from AVC (All View Cloud) show that home appliance retail sales rose 18.7% year-on-year in the first quarter, highlighting the strength of the policy impact.
The program has also begun to reshape category dynamics, primarily by accelerating replacement demand for essential products. More broadly, China’s home appliance market—especially in traditional categories—has entered a mature, replacement-driven phase focused on refinement rather than expansion.
Against this backdrop, leading players are increasingly turning to product innovation to capture more segmented and personalized demand, as consumers place greater emphasis on quality of life. In the laundry segment, for example, demand is becoming more segmented. Mini washers cater to small, time-sensitive loads, while multi-drum machines (with three or more compartments)—one of the year’s standout product innovations—allow different garments to be washed separately. Sales have risen sharply, and within just one year of launch, penetration has already exceeded 2%.
New product formats and functionalities have also fueled rapid growth in the cleaning appliances segment. Floor washers equipped with hot water and steam functions have seen strong demand. Vacuum cleaners with self-emptying base stations recorded a 262% increase in retail sales, while robot vacuums with integrated mopping capabilities surged by 1,593%, underscoring robust momentum in the category.
Export Market
China’s home appliance exports faced mounting pressure in 2025 amid an increasingly volatile global trade environment. According to data from the General Administration of Customs, total exports reached USD 111.41 billion, broadly flat year-on-year. Exports to the United States declined due to higher tariffs, while shipments to the European Union and the United Kingdom continued to expand. Behind these shifts is a deeper recalibration of the industry’s global strategy.
To mitigate trade barriers and supply chain risks, leading brands such as Haier, Midea, Hisense and TCL stepped up their overseas expansion in 2025. At the same time, key component and supply chain players, including Jiaxipera and Sanhua, continued to build out localized operations abroad.
A new model is steadily taking shape—one that moves beyond traditional exports toward full-scale globalization. More companies are producing goods in overseas markets and selling directly within those regions. As a result, a growing share of output no longer shows up in China’s export statistics, yet it is strengthening global market share and improving operational resilience for Chinese brands.
The export mix is also moving up the value chain. In addition to traditional product categories, smart home solutions, personalized small appliances and household robotics are emerging as new growth drivers in overseas markets. Meanwhile, the rapid rise of cross-border e-commerce is opening up fresh channels for expansion—allowing companies to leverage China’s supply chain strengths to reach global consumers more efficiently, while also sharpening their understanding of local demand and building digital marketing capabilities.
Outlook for 2026
Looking ahead to 2026, the industry is entering a more challenging yet opportunity-rich phase. On the domestic front, growth will increasingly depend on innovation-driven replacement demand. Companies will need to more precisely target segmented consumer groups and create new value across areas such as sustainability, smart functionality, comfort and health.
On the export side, the outlook remains relatively stable, with solid underlying resilience. Beyond product shipments, more advanced localized capabilities—including R&D, manufacturing, branding and compliance—are becoming key indicators of global competitiveness. Geopolitical tensions will continue to weigh on supply chains, but they are also likely to accelerate the shift toward more flexible and diversified global operating networks.