Firstly, this paper analyzes the challenges faced by China in expanding consumption demand and upgrading consumption through a large number of data, including: the consumption rate and consumption amount have been at a low level for a long time, the aging population has inhibited consumption growth, the large income gap between urban and rural residents and the uncoordinated regional development, and the medium- and high-end consumption demand has not been fully met. Then, from the perspectives of the improvement of disposable income, industrial innovation, business model innovation, supply and demand matching, consumption return, and industrial chain reconstruction, this paper analyzes the theoretical logic of the digital economy driving consumption upgrading, analyzes the promotion path of the digital economy driving consumption upgrading, and proposes to continuously improve the digital ecology, increase the construction of new infrastructure, promote the deep integration of consumption upgrading and industrial upgrading, improve the capacity and level of public services, and establish a unified national market. Finally, it concludes that the consumption upgrading driven by the digital economy will be a process of sustainable development. In the process of promoting consumption upgrading, it will continue to expand the scale of consumption and lay the leading position of consumption in China's economic growth.
