According to data from the National Bureau of Statistics, the proportion of people aged 60 and above in China reached 19.8% in 2022, indicating that China has officially entered a profound stage of aging. The aging process in China is expected to continue accelerating and be challenging to reverse due to factors such as declining birth rates, increased life expectancy, and population migration. It is projected that by approximately 2035, the population of individuals aged 60 and above will exceed 400 million, accounting for over 30% of the total population, indicating a stage of severe aging.
The "China Aging Industry Development Report," released by the National Working Commission on Aging, forecasts that the elderly population in China will reach 480 million by 2050. This demographic shift presents significant consumption potential, expected to reach trillion-level figures and contribute to 33% of the country's GDP. Consequently, China emerges as the country with the most substantial potential in the global aging industry market.
The increasing number of elderly individuals is driving a surge in demand for elderly care services. Furthermore, declining birth rates have led to smaller family sizes, placing a greater burden on caring for older adults. Younger individuals often lack the necessary resources and energy to adequately care for their elderly family members, thereby necessitating external support from elderly care service providers.
From the perspective ofdevelopment models, there are currently three main types of elderly careoptions in China:
•Home-based elderly care, whichrelies on family members as the main support for elderly care and aligns withthe traditional Chinese concept of "raising children to support oldage." This model is primarily adopted by the rural population.
•Community-based elderly care,which relies on the government, family members, and social forces to provideelderly care services.
•Institutional elderly care, suchas nursing homes, retirement apartments (senior living communities), etc.,which are based on the social security system and provided by complexinstitutions as a form of elderly care resources.
In these areas, there arebusiness opportunities for companies that aim to operate in China, including:
•Livable environment: Developmentof infrastructure and services to create a comfortable and conducive livingenvironment for the elderly.
Industry example: Vanke, aChinese real estate company, entered the elderly care industry relativelyearly. In 2009, they initiated their first elderly care project called "Suiyuan Jiashu" and later launched the Vanke Happiness Hub elderly care project.They currently offer a range of elderly care products under the "Yiyuan, Suiyuan, Jiayuan + Professional Medical Institutions" system, which includeselderly care communities, embedded care centers, and senior apartments.Currently, the transformation and advancement in this business direction aremainly driven by real estate companies.
•Nursing services: Provision ofprofessional and personalized nursing care services for the elderly.
Industry example：Care Link is a Chinese company established in 2013. It operates on adevelopment model of "integrated medical care, nursing, andwellness," covering the health service scenarios required for elderlycare. By integrating diverse resources, Care Link provides high-qualityintegrated medical and care services. Currently, there is no dominant companyin this business direction, and regional companies are primarily leading theway in exploration and experimentation.
•Cultural/travel services:Development of cultural and travel services tailored to the needs andpreferences of the elderly population.
Industry example：Travel companies have started offering services for middle-aged andelderly individuals. However, there is currently a lack of prominent companieswith sufficient scale in this market due to a lack of targeted innovation. InJapan, which also has a high aging population, Club Tourism has emerged as thelargest elderly tourism service provider. In China, the China Tourism Academypredicts that there will be over 100 million financially capable elderlyindividuals who actively engage in travel, generating over a trillion yuan inrevenue from elderly tourism. With the tourism industry's recovery this year,the elderly population is actively participating in various touristdestinations, indicating significant opportunities in this market.
•Smart products: Manufacturing anddistribution of innovative and intelligent products that cater to the specificneeds of older adults.
•Insurance: Offering insuranceproducts and services that provide coverage and protection for the elderlypopulation's healthcare and financial needs.
•Smart products: Manufacturing anddistribution of innovative and intelligent products that cater to the specificneeds of older adults.
Industry examples：Currently, we have seen various attempts at designing intelligentproducts for the elderly.
a)Health monitoring products: Theseproducts typically include smart bracelets, smart clothing, and other devicesthat can monitor the elderly's physiological indicators such as heart rate,blood pressure, body temperature, etc. The data is then transmitted to thecloud for analysis and processing. By analyzing this data, healthcareprofessionals can timely identify health issues in the elderly and takeappropriate measures.
b)Smart home monitoring systems:These systems usually consist of devices such as smart cameras, smart speakers,smart locks, etc., which can monitor the elderly's home conditions and detectanomalies in a timely manner. For example, if the elderly person is not visiblein the field of view of the smart camera for an extended period, the systemwill automatically send an alert to notify family members or caregivers. Thesesystems can also make the electrical appliances, lighting, door locks,curtains, etc., in the house smart, and can be controlled through voicecommands or remote control via an app.
c)Smart voice assistants: Theseproducts are typically based on voice recognition and natural languageprocessing technologies. They can answer the elderly's questions, provideentertainment, set alarms, and have the ability to connect with other smart devices such as smart home devices, healthmonitoring devices, etc.
d)Smart robots: These products areusually based on machine learning and computer vision technologies. They canautonomously move and interact, providing companionship and assistance to theelderly. They can engage in conversations with the elderly, provide careservices such as dressing assistance, feeding, massaging, and can also remindthe elderly to take medication, exercise, and schedule appointments.
e)Smart medication boxes: Thesemedication boxes use intelligent technology to manage and remind the elderlyabout their medications. The boxes are equipped with sensors and communicationdevices that can be linked to smartphones, tablets, or smart home devices toremind the elderly to take their medication on time and reduce the chances ofmissed or duplicate doses.
f)Smart mattresses: Thesemattresses use sensors and detectors to monitor and analyze the elderly's sleeppatterns. Through these mattresses, the elderly can gain insights into theirsleep quality and make necessary adjustments to improve their sleep habits.
•Insurance: Offering insuranceproducts and services that provide coverage and protection for the elderlypopulation's healthcare and financial needs.
Industry example：Insurance companies have introduced targeted offerings for the elderly,such as China Life Property & Casualty Insurance. They utilize big dataanalysis and actively develop insurance products to cater to the needs of theelderly, enhancing their protection options. For example, they have launched"Xiao An Xin" (Cancer Medical Insurance for the Middle-aged and Elderly)to provide cancer prevention and treatment coverage for middle-aged and elderlyindividuals. This product includes convenient value-added services likefast-track medical services, multidisciplinary consultations, direct hospitalpayment, assistance in malignant tumor drug trials, and home care services.Additionally, they have also developed medical insurance specifically for themiddle-aged and elderly, offering coverage for general medical expenses andmore comprehensive benefits compared to the "Xiao An Xin" product.
