As China is entering a deeply aging society, the aging population brings not only social challenges such as tightening labor supply but also significant new opportunities in the consumer market for the silver generation.
According to Zhitong Finance, Guosen Securities released a research report stating that the scale of China's silver economy continues to grow and is expected to exceed 16 trillion yuan by 2030. The consumption habits of the new generation of seniors show significant differences, driving companies to innovate business models: offline retail integrates social interaction and cost-effective services; gold and jewelry brands meet value preservation needs through branding and heritage; beauty care companies leverage product strength and professional solutions to seize opportunities from consumption upgrades. Related enterprises' proactive layout is expected to bring new development opportunities.
The main viewpoints of Guosen Securities are as follows:
Event
As China is entering a deeply aging society, the aging population brings not only social challenges such as tightening labor supply but also significant new opportunities in the consumer market for the silver generation.
Guosen Retail Perspective
According to Frost & Sullivan data, the market size of China's silver economy reached 4.3 trillion yuan in 2019, continued to grow to 7.1 trillion yuan in 2023, and further increased to 8.3 trillion yuan in 2024. It is projected that by 2030, the overall market size will surpass 16.2 trillion yuan, indicating substantial potential for the silver economy. Moreover, the new generation of seniors, due to their upbringing, wealth levels, and family structures, differ significantly from the previous generation of middle-aged and elderly consumers, resulting in distinct consumption habits. To address the differentiated consumption characteristics of this new senior demographic, companies have adopted differentiated business strategies in channel and product layouts to meet the needs of this emerging customer base. Specifically:
Offline Retail
Leading department store companies such as Bailian Co., Ltd. and Chongqing Department Store have attempted to establish business models catering to the purchasing habits and product preferences of the silver-haired consumer group, fulfilling their dual demands for social interaction and shopping. Meanwhile, supermarket enterprises like Hema, Sun Art Retail, and Yonghui, building on their efforts to enhance product cost-effectiveness, have also actively expanded into formats such as 'silver-haired community canteens,' integrating dining with other services to increase foot traffic and purchase conversion rates among the elderly population.
Gold and Jewelry
Middle-aged and elderly consumers have always been the primary demographic for gold products, with consumption driven mainly by value preservation needs. Under the influence of a strong sense of 'heritage,' they also have high requirements for brand strength and product quality. Established gold retail companies such as Caibai Co., Ltd. and Lao Feng Xiang, which possess deep brand foundations, focus on investment gold in their product offerings but also create differentiation through collaborations. In terms of distribution channels, they adopt large-store models and robust after-sales service capabilities to enhance brand loyalty among specific customer groups, positioning themselves to benefit from the expanding customer base.
Beauty Care
The proportion of the silver-haired population in sectors such as cosmetics and medical aesthetics continues to rise. Referencing mature overseas markets, there is potential for growth in both volume and pricing. Leading companies with comprehensive product portfolios are well-positioned to benefit from increased sales among the silver-haired demographic. Key attention should be given to leading enterprises with upstream raw material advantages and systematic solution capabilities: Bloomage Biotech, Aimeik, and Ruoyuchen. Additionally, in personal care, companies focused on middle-aged and elderly care, such as Reliable Co., Ltd., are likely to benefit from the expanding target audience.
Risk Warning: The consumer industry remains under pressure; competitive dynamics may deteriorate, with price wars impacting corporate profitability; public relations incidents could affect brand equity.
