Insufficient supply in the senior care market
According to the definition of the Statistical Classification of the Senior Care Industry (2020) issued by the National Bureau of Statistics (NBS) in February 2020, the senior care industry, which is aimed at safeguarding and improving the life, health and safety of the elderly as well as their participation in the development of the society, realizing a sense of nourishment for the elderly, medical care, a sense of security for the elderly and a sense of learning for the elderly, The old age industry is a collection of production activities for the purpose of providing the public with a variety of old age and related products (goods and services), including activities specifically designed to provide products for old age or the elderly, as well as manufacturing activities for old age goods and related products suitable for the elderly.
With the improvement of people's living standards, changes in the consumption needs of the elderly group, the elderly market is getting bigger and bigger, but the enterprise supply can not meet the market demand. China's implementation of the elderly model is mainly "9073" model, that is, 90% of the elderly by the family self-care, 7% enjoy the community home care services, 3% enjoy institutional care services.
Currently, the structure of China's elderly care model is 96% of the market share for home care, 3% for community care, and 1% for institutional care, which is still far from the "9073" model structure proposed by the State Council.
Between 2016 and 2020, the number of senior care institutions nationwide will grow from 28,000 to 38,000, but there is still room for growth relative to the huge market demand. In addition, the current senior care market is polarized, with one end of the spectrum being high-end senior care real estate projects that do not meet the needs of the majority of the population, and the other end of the spectrum being the majority of current senior care institutions that are not easily accessible and have poor service quality, which does not meet the demand for mid-range senior care institutions.
So in the face of changes in consumer upgrading and the transformation of health needs, there is a greater need for diversification, specialization, targeted market development, the number of institutions for the elderly and the quality of the yet to be developed.
China's senior care market is in short supply, and the broad prospects of China's senior care market have attracted a large number of foreign companies to enter the Chinese senior care market. According to AgeLifePro statistics, as of the end of 2020, 40 companies from at least 11 countries have entered China's senior care market, spreading across 17 provinces, and 44 projects have been completed, 12 of these foreign companies are from the United States, 11 from Japan, 11 from Europe, 1 from South Korea, and 1 from Singapore; among them, U.S. and Japanese companies have become the big entry into China's senior care market. forces, accounting for more than 50%. In China's pension market, the United States, Japan, Europe, the three-legged situation has been formed.
Rapid growth in demand for senior care services
China has entered an aging society since 2000, with the ratio of the elderly population to the total population continuing to rise, and the pace of aging development gradually accelerating. According to data from the National Health and Health Commission, with economic and social development, more and more older people are focusing on daily health care, and people's average life expectancy has lengthened, with China's per capita life expectancy increasing by 77.3 years in 2019.
China's aging population continues to increase in number, in 2020, the country's elderly population over 65 years old about 177 million, accounting for 12.64% of the national population, has exceeded the international standard of 7% of the aging countries; the population of people over the age of 60 years of age of about 268 million, accounting for 18.87% of the national population.
In addition, the rise in the consumption ability of the elderly to promote the growth of demand for senior care services, the urban and rural elderly per capita consumption expenditure in 2020 will be about 16,307 yuan, medical expenditure accounted for 9.2% higher than in 2014, indicating that the elderly for the pursuit of health is significantly higher.
With the accelerating trend of aging, China's pension market has been maintaining high growth. in 2018, the size of China's pension market has exceeded 6.56 trillion. Due to the gradual expansion of middle-class pension awareness, the demand for pension services will further increase. The huge aging society brings wide market prospects for the pension market, and it is expected that the pension market size may exceed 10 trillion in 2022.
--For more data, please refer to Analytical Report on the Development Prospect and Investment Strategy Planning of China's Pension Industry released by Prospect Industry Research Institute.