Opinion | Expanding northward: Infinite business opportunities in silver economy

By Dr. Kevin Lau

In the current economic climate, businesses in Hong Kong are striving to find new breakthroughs and highlights for their ventures. Given that the aging population is becoming a trend in Hong Kong, it can undoubtedly become a "blue ocean" for economic development. Moreover, this market is not limited to Hong Kong alone; it extends to the vast mainland China beyond the Shenzhen River.

This argument holds true for good reasons. Recently, the General Office of the State Council released the "Opinions on Developing the Silver Economy to Enhance the Well-being of the Elderly" stating that efforts should be made to "actively implement strategies to address population aging, promote better integration of effective markets and proactive governments, facilitate collaborative development of industries, expedite the scale, standardization, clustering, and branding of the silver economy, cultivate high-end products and high-quality service models, and allow the elderly to share in the fruits of development and enjoy a happy old age." In simple terms, the country's policy is to vigorously promote elderly care services and the silver economy. For Hong Kong's business community, this represents an exceptional opportunity.

We must not underestimate the scale of the silver economy in mainland China. Due to increased life expectancy, the population pyramid in mainland China has undergone significant changes. According to United Nations data, the number of people aged 60 and above in mainland China reached 280 million in 2022, an increase from the previous year's 270 million, accounting for nearly 19% of the total population. More importantly, the trend of population aging is evident, with an annual average growth rate of 2.37% for the population aged 65 and above. The proportion of this age group in the total population has increased significantly from 3.7% in 1960 to 11.97% in 2020.

Furthermore, other factors contribute to the attractiveness of the silver economy in mainland China. With rapid economic development, there has been an accelerated flow of labor towards urban areas. Coupled with the cumulative impact of the previous "one-child policy" the current situation has emerged. Mainland China is gradually entering an aging society where elderly individuals require care. However, due to the aforementioned factors, it is extremely difficult to find caregivers for them within their families. In the absence of family support, elderly individuals naturally seek external assistance, leading to a surge in demand for senior services and products and turning the silver economy into a profitable industry. Data shows that the market size of China's silver economy continued to expand from 2016 to 2020, surpassing USD 740 billion in 2020, making it a significant scale that cannot be ignored.

Additionally, from my personal experience of traveling in mainland China, I have noticed a shift in the lifestyle and values of elderly individuals in recent years. We often see elderly people at tourist attractions and restaurants. They now possess economic resources and leisure time, and are willing to spend and enjoy their golden years. Their way of life has significantly deviated from the traditional frugal, family-centered, and grandchild-focused lifestyle. Naturally, this also adds to the attractiveness of the silver economy.

Looking horizontally, the coverage of the silver economy is extensive, not limited to elderly and healthcare services alone. The current elderly population in mainland China places a high emphasis on health consciousness and desires to maintain a youthful appearance. For example, they are willing to spend on health foods, supplements, and hair dye products. In addition to tangible goods, the wealth held by the older generation is bound to stimulate growth in asset management, financial planning, and insurance industries.

The author is a specialist in radiology with a Master of Public Health from the University of Hong Kong, and an adviser of Our Hong Kong Foundation.

The views do not necessarily reflect those of DotDotNews.