With the improvement of people's living standards and the changes in the consumption demand of the elderly group, the elderly market is getting bigger and bigger, but the elderly care market is in a state of insufficient supply. The current structure of the elderly care model is still far from the "9073" model structure proposed by the State Council. The quantity and quality of institutional elderly care have yet to be developed. Insufficient supply has caused a large number of foreign-funded enterprises to enter the Chinese elderly care service market.

In terms of demand, my country’s average life expectancy has increased, the aging population has accelerated, and the elderly’s spending power has increased, driving the rapid growth in demand for elderly care services. The huge demand for elderly care has brought broad market prospects to the elderly care market. It is expected that The size of the elderly care market may exceed 10 trillion in 2022.

Insufficient supply in the elderly care market

According to the "Statistical Classification of Elderly Care Industry (2020)" promulgated by the National Bureau of Statistics in February 2020, the elderly care industry is to protect and improve the lives of the elderly , health, safety and participation in social development, to achieve the goals of providing for the elderly, having medical care, doing something for the elderly, learning for the elderly, having fun and having peace of mind, etc., and providing various elderly care services to the public. A collection of production activities for products and related products (goods and services), including activities that specifically provide products for the elderly or the elderly, as well as manufacturing activities for elderly care products and related products suitable for the elderly.

With the improvement of people's living standards and the changes in the consumption demand of the elderly group, the elderly market is getting bigger and bigger, but the supply of enterprises cannot meet the market demand. The elderly care model promoted in my country is mainly the "9073" model, that is, 90% of the elderly are cared for by their families, 7% enjoy community home care services, and 3% enjoy institutional care services.

The current structure of my country's elderly care model is that home care accounts for 96% of the market share, community care accounts for 3%, and institutional care accounts for 1%. There is still a gap between the "9073" model structure proposed by the State Council.

Although the number of elderly care service institutions nationwide increased from 28,000 to 38,000 from 2016 to 2020, there is still room for growth compared to the huge market demand. In addition, the current elderly care market is polarized. On the one hand, high-end elderly care real estate projects do not meet the needs of most people. On the other hand, most current elderly care institutions have inconvenient transportation and low service quality and do not meet the demand for mid-range elderly care institutions.

Therefore, in the face of changes in consumption upgrading and the transformation of health needs, diversified, professional, and targeted market development is even more needed. The quantity and quality of institutional elderly care have yet to be developed.

my country's elderly care market is undersupplied, and the broad prospects of China's elderly care service market have attracted a large number of foreign-funded companies to enter the Chinese elderly care service market. According to AgeLifePro statistics, as of the end of 2020, at least 40 companies from 11 countries have entered the Chinese senior care market, covering 17 provinces, and 44 projects have been completed. Among these foreign companies, 12 are from the United States, 11 from Japan, and 11 From Europe, one company is from South Korea and one is from Singapore; among them, American companies and Japanese companies have become the major forces entering the Chinese elderly care market, accounting for more than 50%. In China's elderly care market, a tripartite situation has been formed between the United States, Japan, and Europe.

The demand for elderly care services is growing rapidly

China has entered an aging society since 2000. The proportion of the elderly population in the total population has continued to increase, and the rate of aging has gradually accelerated. According to data from the National Health Commission, with economic and social development, more and more elderly people pay attention to daily health care, and people's average life expectancy has been extended. In 2019, the average life expectancy of Chinese residents increased to 77.3 years.

The number of elderly people in our country is constantly increasing. In 2020, there will be about 177 million people over 65 years old in the country, accounting for 12.64% of the national population, which has exceeded the international standard of 7% for aging countries; the population over 60 years old There are approximately 268 million people, accounting for 18.87% of the national population.

In addition, the increase in the consumption power of the elderly has promoted the growth in demand for elderly care services. In 2020, the per capita consumption expenditure of the elderly in urban and rural areas was approximately 16,307 yuan, and the proportion of medical expenditure increased by 9.2% compared with 2014, indicating that the elderly have a high demand for elderly care services. The pursuit of health has increased significantly.

As the aging trend continues to accelerate, China’s livestock market has maintained high growth. In 2018, the size of China’s elderly care market exceeded RMB 6.56 trillion. As the middle class’s awareness of elderly care gradually expands, the demand for elderly care services will further increase. The huge aging society has brought broad market prospects to the elderly care market. It is expected that the size of the elderly care market may exceed 10 trillion in 2022.

For more data, please refer to the "Analysis Report on Development Prospects and Investment Strategic Planning of China's Senior Care Industry" released by the Qianzhan Industry Research Institute.