China is a populous country, and its huge population base makes it a globally watched food consumption market. Food giants including Kraft and Nestlé have incorporated the Chinese market into their strategic plans. Especially with the opening of the two-child policy, infant formula, baby food, and children's food have become market segments fiercely contested by domestic and foreign food companies. However, the background against which the two-child policy was introduced has been forgotten by the market: the unstoppable aging of the population! From the perspective of the domestic market, whether online or in physical supermarkets, there are very few food products for the elderly. This huge food consumption market, which is terrifying to think about, is still blank in China.
How "old" is China now? By 2030, one in three people will be elderly! Since the opening of the two-child policy, the birth rate has not been as good as expected, but China's aging is deepening at a running pace. According to the National Bureau of Statistics' "2014 National Economic and Social Development Statistical Bulletin," among China's 1.367 billion people in 2014, 212 million were aged 60 or above, accounting for 15.5% of the total population; the population aged 65 and above was 137 million, accounting for 10.1%. When a country or region's population aged 60 and above accounts for 10% of the total, or the population aged 65 and above accounts for 7%, it means the population is aging. Based on the current speed of aging in China, by 2030, three out of ten people in the country will be elderly. From a market perspective, this brings a silver economy that cannot be underestimated, but currently, domestic market development in this area is still stuck in the "health products" field. Meanwhile, the nearly 200 million people aged 65 and above have a growing demand for senior food.
Current status of China's senior food market During a visit to several large supermarkets in Hangzhou, the author found that senior food products are scarce. A few senior milk powders, senior oatmeal, and other instant foods are scattered on shelves in different areas. When consulting supermarket staff, they only direct you to the health products section. In contrast, "infant food," which is favored by the market, has dedicated sections in every supermarket, and some supermarkets even subdivide infant food into imported and domestic areas. In addition, on well-known online shopping platforms such as Taobao, JD.com, and NetEase Kaola, search results for "senior food" mainly focus on traditional "sugar-free, low-sugar" pastries and health foods with functions like lowering blood pressure, lowering blood sugar, and promoting intestinal health. Overall, the market shows a single variety, poor taste, low brand awareness, and lack of research and development.
The consumption power of the elderly should not be underestimated The annual consumption potential of the elderly group is over 300 billion yuan. Why can infant food achieve segmented development and be crowded by major brands? Because companies see young parents' attention to infant growth, their willingness to invest in edible products that directly affect infant growth, and their increasing focus on branded products. Conversely, in traditional concepts, the elderly are synonymous with thrift, and they are generally reluctant to spend money on high-priced products. However, with the improvement of living standards and the extension of human lifespan, the elderly's requirements and investment in health and food are also continuously increasing. According to estimates from relevant parties, the annual consumption potential of China's elderly group reaches over 300 billion yuan, of which at least 100 billion yuan is spent on food each year. In addition, the post-80s generation, who are gradually becoming the backbone of society, are changing their concepts and investment of energy in caring for the elderly. They are more willing to spend money on purchasing senior food to improve their parents' quality of life and save their own time.
A billion-level senior food market waiting to be developed China has gradually entered an aging society. In five years, senior food will usher in an explosion. Currently, there are no corresponding representative enterprises, but the market capacity for senior food is enormous. In the future, many industries can develop it. It is a huge opportunity and trend!
From a nutritional perspective, an ideal senior food must meet three standards: provide necessary nutrition, suit the elderly's taste, and help regulate physiological functions. For example, the elderly also get cravings; they are not satisfied with only overcooked vegetables. They also hope to enjoy delicious food with good color, aroma, and taste, but due to poor teeth and weakened digestion, they cannot enjoy mainstream food. This creates a demand for senior food. Currently, the only instant foods available in supermarkets completely fail to meet this market demand. A government report released in September 2016 pointed out that goods and services related to the elderly account for 8% of China's consumption structure, and this market is worth 4 trillion yuan, which means a billion-level senior food market is waiting to be developed.
Developing segmented markets and occupying a place is the success path for many well-known food companies. Whether it is infant food, children's food, women's food, pregnant women's food, health and functional foods, they have gradually formed industrialized development and have a number of leading and representative enterprises. However, the senior food market is still blank. Although the relevant institutions' expectation that "elderly consumption accounts for one-third of GNP" is in the distant 2050, if you want to occupy a place in the senior food market, it depends on how you cultivate it! Fully understand the characteristics of the elderly group, research and develop beverages, leisure foods, nutritional foods, convenience foods, alcoholic drinks, and corresponding food ingredients and machinery that the elderly love. The huge senior food market is waiting for your development!
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