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China's ageing population
EconomyChina Economy

China’s elder economy hits US$2 trillion in value – and industry is only just maturing

  • The value of China’s emerging economy catering to the elderly has already moved into the trillions, according to one estimate from researchers

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The sector of China’s economy catering to the elderly has seen massive expansion in recent years - and as the population ages, that growth is expected to be surpassed. Photo: AFP
Ralph Jennings
The final consumption value of products and services designed with China’s growing older population in mind – a sector that is not yet “fully mature” according to a white paper released this week – has reached about 14.4 trillion yuan (US$2 trillion), an indication of the already ballooning industry’s prospects for further expansion.

Low-cost travel, e-commerce, live streaming by older influencers and sorghum wine – a high alcohol drink – are among that population’s top buys according to the white paper from Shanghai-based China Insights Consultancy and Chinese online education service QuantaSing Group.

“With rapid socio-economic development, increases in life expectancy, and a decline in fertility rates, China is gradually transitioning into an ‘aged society,’” said the paper, published Tuesday and presenting an analysis of survey results for 5,710 people aged 45 or higher.

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“Currently, services and products [for the middle aged and their seniors] are not yet fully mature, presenting substantial market potential for investment and growth.”

That potential is being noticed. In a keynote address at the opening session of the 15th Annual Meeting of the New Champions in the northeastern port city of Dalian, Chinese Premier Li Qiang said the country is seeking improvements in elder care and support for the “silver economy”, calling the demographic a “valuable resource” for society.

“I think an effective response cannot only help us better respond to ageing, but also foster new growth drivers,” said Li at the event, organised by the World Economic Forum and also known as Summer Davos.

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