China's aging population fuels 'silver economy' boom

BEIJING

China's market for aging-related services, known as the "silver economy," is rapidly expanding in response to the country's growing elderly population.

By 2035, more than 30% of China's population—over 400 million people—will be aged 60 or above. With this demographic shift, Beijing has projected the silver economy to grow significantly, from 7 trillion yuan ($982 billion) currently to approximately 30 trillion yuan ($4.2 trillion) in 2035.

This trend is driving demand for innovative services and solutions tailored to older adults, moving beyond traditional nursing homes. The government is focused on promoting home care services, meal deliveries, and senior-friendly products like clothing, technology, and food.

The initiatives not only reflect China's deep cultural value of aging at home but also offer a more affordable alternative for families.

Experts stress the growing need for dementia care, with cognitive screening and specialized staff training becoming key priorities. Additionally, businesses are capitalizing on this market, with property developers and insurance companies creating high-end senior communities featuring amenities like movie rooms and dining services.

Meanwhile, the government is repurposing unused schools and kindergartens into care facilities to address the growing demand.

Despite this progress, challenges remain. Many older Chinese have limited spending power, with a median annual income of just 11,400 yuan ($1,574), and even less in rural areas.

Experts emphasize the importance of continued investment and tax incentives to build industries and train workforces equipped to meet the needs of this growing demographic.