The phenomenon of an aging population is shaping a rapidly evolving sector referred to as the "silver economy." This market is increasingly becoming a vital driver for economic growth, especially in countries facing significant demographic transitions. Recently, the Executive Meeting of the State Council in China took place, discussing various policy measures aimed at advancing the silver economy and enhancing the welfare of the elderly. The emphasis placed on the development of this segment of the economy underscores its importance not only in addressing the current demographic challenges but also in ensuring sustainable growth for the future.

But what does the term “silver economy” really signify?

Currently, China stands as the home to the largest elderly population globally and is one of the fastest-aging societies. The silver economy, often interchangeably called the aging economy, pertains to economic activities designed to provide goods and services for seniors. Its evolution is closely tied to the maturation of an aging society.

As of the end of 2022, the Chinese population reached approximately 1.41 billion, experiencing a decline of about 850,000 from the previous year. Notably, this decline marked the first net population decrease since 1962, as the birth rate fell below the death rate for the first time in decades. By the end of 2022, over 280 million individuals aged 60 and older populated China, representing 19.8% of the total population; thus, one in five citizens is considered an elder. Moreover, those aged 65 and above constitute 14.9% of the population. United Nations projections suggest that by 2035, the elderly populace will exceed 400 million, accounting for an astounding 31% of the total population.

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According to predictions from the China Aging Science and Technology Research Center, by 2030, the aging industry could contribute up to 20% of the nation’s GDP, with projections of a staggering one-third contribution by 2050. Analysts believe that as the aging population continues to expand, the consumption needs of the middle-aged and elderly will become increasingly prominent, revealing immense potential within the aging industry. This significant demographic shift is leading to a new consumption model— the "silver economy," with market forecasts estimating that by 2026, the scale of this economy could reach 12 trillion yuan.

Addressing the challenges posed by an aging population, local governments across China are focusing on developing the silver economy as a new source of economic growth. Industries catering to essential services like healthcare, housing, transportation, and leisure activities aimed at seniors are rapidly emerging.

Experts predict an impending surge within the silver economy.

On the demand side, evolving consumer preferences combined with technological advancements are diversifying the medical, health, cultural, entertainment, and shopping needs of the elderly, resulting in a continually expanding senior care industry.

Public data indicates that by 2022, the elder care industry could exceed 9 trillion yuan in scale, with further projections reaching 12 trillion yuan by 2025, and an astonishing 20 trillion yuan by 2030.

From an investment angle, the elder care sector presents a vast untapped treasure trove, fueled by substantial and promising user demand. The supportive policies from the government, including tax incentives and financial subsidies for innovation, create a conducive environment for capital influx. The application of cutting-edge technologies such as the Internet of Things, big data analytics, and cloud computing is revolutionizing elder care services, marking the industry as a veritable “gold mine” in the eyes of investors.

A growing number of enterprises are being drawn to this burgeoning sector, competing fiercely across various niches. This includes cultural products for the aged, health products tailored for seniors, the construction of intelligent elder care communities, high-tech elderly product manufacturing, the provision of refined services within the elder care sector, and the crafting of exclusive financial products designed for the elderly.

The silver economy can broadly be categorized into six sectors: silver cultural industries, silver health care industries, silver lifestyle industries, silver manufacturing, silver services, and silver financial industries. These sectors represent new growth points for the silver economy and are poised to become a driving force for high-quality economic development.

In the realm of health consumption, a substantial portion of health supplement buyers comprises older adults, with those over 60 accounting for 37% of healthcare expenditures exceeding 40%. The inherent health benefits of these products correlate closely with the progression of an aging population.

Regarding medical services, entities are moving towards providing in-depth elder care services, and the industry's development has matured significantly in recent years.

Moreover, a recent technological revolution driven by artificial intelligence is reshaping the landscape of industries in China. When integrated deeply within the elder care sector, advanced technologies can facilitate convenient, efficient, and intelligent services tailored for seniors.

As society adapts to a norm characterized by an older population, our objectives should extend beyond establishing physical "elder-friendly" environments. We should aim to cultivate a "more friendly society," particularly a digital society that is friendly to the elderly.