China’s Gen Z Power 179 Million-Strong Digital Shift: AI Uptake and Esports Zeal Redefine 2025 Consumption
China’s 179 million Gen Z users have solidified their position as the dominant force shaping the country’s digital economy, spending significantly more time online than the national average and driving trends from generative AI adoption to "emotional consumption." According to a new report by analytics firm QuestMobile released in December 2025, this demographic—born after 2000—now accounts for 14.0% of China's entire internet user base, creating a distinct "digital indigenous" cohort that operates heavily into the late-night hours.
The most rapidly emerging trend among this group is their aggressive embrace of Artificial Intelligence. In a clear signal to the technology sector, the report highlights that the active user base for AIGC (AI-Generated Content) among Gen Z surged by 20.1% over the past year, marking it as the fastest-growing interest sector. This generation is not merely consuming content but is actively utilizing new AI tools, showing high stickiness and engagement with AI ecosystems embedded within major platforms.
Beyond technology adoption, Gen Z is fundamentally altering the economics of the gaming industry. Moving past the role of passive players, these users have morphed into deep participants in the esports ecosystem. Data indicates that during the League of Legends S15 tournament, weekly active users in this demographic hit 21.57 million, signaling that competitive gaming has become a primary avenue for cultural consumption and social networking, rather than just entertainment.
This shift in behavior is underpinning a broader consumption model driven by "emotional value," benefiting sectors from pop culture merchandise to live events. The report identifies a "dual-track" spending habit where Gen Z invests in digital content for mental recharging while simultaneously spending on offline experiences to build social capital. This willingness to pay for identity and experience is providing new growth engines for companies able to bridge the digital-physical divide, despite a generally rational approach to spending.
The AI-First Generation
The scale and intensity of Gen Z’s digital footprint are expanding. As of October 2025, the cohort’s average monthly usage reached 217.6 hours, a 3.7% year-on-year increase, exceeding the national average by 18.7%. Their connectivity is pervasive, with over 40% of users remaining active online after midnight.
This high engagement is increasingly directed towards cutting-edge technology. The report describes Gen Z as showing "quick technology acceptance," specifically in the AIGC sector. Major domestic AI applications, including Doubao, DeepSeek, and Tencent Yuanbao—developed by Tencent—have captured the majority of this user base. The data reveals that high engagement with these standalone AI tools correlates with increased usage time on mainstream platforms like WeChat and Douyin, suggesting an integrated demand for innovative, AI-driven interaction experiences.
Evolving Gaming and Esports Ecosystem
Gaming remains a critical window into Gen Z behavior, with the demographic showing a distinct preference for MOBA (Multiplayer Online Battle Arena), strategy, and shooting genres. Honor of Kings, the flagship title from Tencent, leads the market with 42.46 million monthly active Gen Z users. Traditional hits like Anipop, developed by Happy Elements, retain resilience with over 25.2 million monthly users, while titles such as Peacekeeper Elite and Genshin Impact continue to draw engagement through social features and high production quality.
However, the industry's center of gravity is shifting towards the broader esports ecosystem. The QuestMobile report underscores that Gen Z users are now "deep participants" in esports rather than simple gamers. During major events like the KPL (King Pro League) Finals, nearly 6.6 million Gen Z users tuned in. Their focus on top teams, star players, and tournament schedules indicates that esports has evolved into a vital category of cultural consumption, offering developers and advertisers new avenues for monetization beyond in-game purchases.
The ‘Emotional Value’ Economy
Gen Z’s consumption patterns are characterized by a search for "emotional value," driving a convergence of online interests and offline spending. This is evident in the video entertainment sector, where short-video platforms like Douyin dominate 37.1% of their screen time. Bilibili continues to see user growth driven by anime and interactive sharing, while Mango TV, operated by Mango Excellent Media Co., Ltd. , retains a strong female user base focused on variety content.
This demand for immersive experiences extends to the physical world. The ticketing platform Damai has seen a surge in Gen Z usage—with a Target Group Index (TGI) of 295.7—as 41.4% of its users book tickets for esports events, concerts, and exhibitions. Furthermore, the "Guzi economy" (merchandise related to anime and games) has become significant. Pop Mart, a leader in designer toys, reports that 43.7% of its traffic comes from Gen Z, underscoring the generation's willingness to pay for IP-driven cultural products.
Despite their enthusiasm for new trends, Gen Z consumers remain financially pragmatic. Their monthly online consumption ability is largely concentrated in the RMB 1,000 to 2,999 yuan (US$137 to US$412) range. The report notes that while this demographic is willing to spend for emotional satisfaction and social identity, the market is maturing into one defined by rational, planned expenditure rather than blind impulse buying.