Aging demographic unleashing consumption potential

With the world's largest aging demographic — projected to see over 400 million people aged 60 and above by 2035 — China is leveraging its vast domestic market and robust industrial infrastructure to grow the silver economy, analysts said.

By doing so, China is not only improving the well-being of senior citizens, but also unlocking new avenues for economic growth and innovation, they said, adding that China's experience can offer insights for other developing countries that are still relatively young in their demographic transition.

With currently around 300 million people aged 60 and above, China is home to the world's largest elderly population, and roughly one in every four seniors globally, said Zhang Ming, deputy director of the Institute of Finance and Banking, which is part of the Chinese Academy of Social Sciences.

While some view this demographic shift as a burden, Zhang focuses on the consumption power of this group and the strong impetus it would provide to the development of the silver economy.

Moreover, China has a relatively complete industrial chain, supply chain and innovation capacity, which provide the necessary technological and production conditions to drive the silver economy forward, Zhang said.

By 2035, the silver economy might grow from 7 trillion yuan ($970 billion) in 2024 to 30 trillion yuan, said the China Research Center on Aging. While economist Ren Zeping said that elderly consumption is predicted to reach 40-69 trillion yuan by 2050, or up to 20.7 percent of the nation's GDP.

Over the years, China's silver economy has taken root and flourished across the country, with a continuous stream of new and vibrant consumer trends emerging as the population's desire and ability to enhance their quality of life steadily grows.

The consumption structure, especially among those born in the 1960s and after, is gradually evolving towards a more self-gifting orientation, with a larger emphasis on product quality, consumption experiences and the expression of personal values, said Liu Ming, director of the Department of Social Development under the National Development and Reform Commission.

"We are witnessing a convergence in the consumption mindsets and structures of the elderly and the young, where the traditional lines separating their preferences and behaviors are gradually fading," Liu said.