China Steps Up Silver Economy Push as More Than 300 Million Seniors Reshape Demand

A growing older population becomes an economic priority

China has issued at least 20 policy statements in 2025 urging businesses to serve older consumers, as its population aged 60 and above exceeds 300 million and is projected to reach 400 million by 2035. The push covers food, healthcare, care for seniors, financial products and new business models, making the silver economy a growing part of the country's effort to support consumption.

As of August 31, 2025, the policy drive is gathering pace while growth in consumer spending slows. Younger people face job insecurity and other economic pressures, increasing the importance of retirees who have savings and dependable pension income. Businesses that once concentrated on children or younger households are finding customers among older people seeking better health, greater convenience and enjoyable ways to spend their time.

The silver economy means the goods and services designed for an ageing population. It includes necessities such as care at home and mobility aids, but also travel, classes, toys, technology and housing. China's ambition is to make this market a source of economic growth while improving daily life for its older residents.

The opportunity is large, but spending power varies widely. Urban retirees with stable incomes are becoming an influential consumer group, while many older people, particularly in rural areas, receive modest pensions and remain careful with money. Those differences shape which products people can afford and where businesses can grow.

Why the demographic shift is accelerating

China's population aged 60 and above has risen beyond 290 million and now exceeds 300 million. By 2035, older people are expected to number 400 million and account for nearly 30 percent of the population. The change reflects decades of the one-child policy, longer life expectancy and changing social norms.

China's birthrate has fallen sharply. In 2022, deaths outnumbered births for the first time in decades. Fewer births mean fewer young people entering the population, while longer lives increase the number of people spending many years in retirement.

The working population is shrinking as the retired population expands. That puts pressure on economic growth and on the pension and healthcare systems that support older residents. Fewer workers must help sustain services for a growing number of retirees.

Government support for the silver economy responds to both sides of that shift. More suitable products and services can meet older people's needs, while new markets can help businesses find demand as spending by younger consumers weakens. Healthcare, leisure and quality of life are central to that effort.

Retirees account for a larger share of spending

Euromonitor International expects consumer expenditure by households headed by someone aged 60 or above to have increased by 129 percent between 2015 and 2025. The corresponding growth rate for the population as a whole is 79 percent. The increase for older households is therefore 50 percentage points higher.

By 2040, seniors are projected to account for 34 percent of China's total consumer spending, compared with 24 percent in 2025. That is an increase of 10 percentage points, taking their share from roughly one quarter to about one third.

Economists point to decades of economic growth as a reason many retirees now have more savings and higher pensions than earlier generations. Urban retirees with dependable incomes are especially attractive to businesses because they can spend on services and experiences beyond basic necessities.

Average pensions nevertheless remain modest, particularly in rural China. Older people also spend less on average than younger households, even as their expenditure grows. A larger senior population creates a bigger market, but companies still need products at prices that match very different household budgets.

Technology companies adapt everyday products

Lao Feng Xiang, a jewelry company, has launched glasses powered by artificial intelligence to help seniors read small print, navigate and receive companionship. The product illustrates how businesses outside traditional care services are entering a market shaped by older consumers.

Xiaomi has added features intended for elderly users to its smartphones and televisions. These include remote assistance, allowing family members to help manage smart home devices. For an older person who struggles with settings or connected appliances, help from a relative can make the technology easier to use.

Ping An, the insurance and healthcare group, has introduced hundreds of benefits for care at home. Its services include health monitoring systems using artificial intelligence that are available in 75 cities. Remote monitoring, wearable devices, telemedicine and smart home products are becoming more common as companies seek to make daily life easier and safer for seniors.

Konka, Hisense and TCL are incorporating health monitoring features into home appliances. Dairy companies that previously focused on infant formula are developing specialized milk powders for older consumers. Businesses are also producing mobility aids and personal care items designed around accessibility, extending the shift from digital devices to everyday essentials.

Classes and toys find an older audience

Li Dongmei, a former kindergarten operator in Jinan, changed her business after falling birthrates and the pandemic reduced demand for children's education. She now offers singing, dancing and art classes to retirees, who attend throughout the year and show strong demand for learning and social activities.

Li described the change in the market she serves:

The silver economy is now bigger than the children's market,

Her experience connects two demographic trends in a single business: fewer children needing education and more retirees looking for activities. Classes offer older customers opportunities to learn, meet people and enjoy their time, broadening the market beyond medical and care services.

Guan Weijiang, a toy merchant in the trading hub of Yiwu, says consumers aged 50 and above now account for 30 percent of his customer base. Fitness and puzzle toys are among his best sellers. That customer group begins below the age of 60 used in China's senior population figures, showing that demand also includes people approaching retirement.

On Taobao, searches for toys suitable for seniors rose 124 percent from a year earlier, while transaction volumes increased by more than 70 percent. Manufacturers are adapting children's toys for older users, focusing on coordination, grip strength and cognitive function, the mental abilities involved in thinking and remembering.

Yunhe county in Zhejiang province, known as China's Wooden Toy Capital, is combining wooden toy production with care for older people. It has developed more than 200 products aimed at cognitive wellness and entertainment. Companies are working with universities and groups focused on Alzheimer's prevention to improve the toys' rehabilitative benefits, while exports to international markets are rising.

Healthcare demand grows beyond basic treatment

Goldman Sachs projects that China's geriatric healthcare industry, which serves older patients, will reach 963 billion yuan, or US$134 billion, by 2035. Demand includes preventive care, premium treatments and rehabilitation after treatment, alongside services for existing health problems.

Wealthy retirees are expected to spend three times as much as their peers on healthcare after retirement. Their spending includes services outside state insurance coverage, such as cataract surgeries, dental implants and specialized vaccines. Household income therefore affects both the amount people spend and the range of care they can purchase.

Companies are responding with services that connect healthcare and everyday living. Monitoring at home, consultations through telemedicine and wearable devices can bring health services into the places where older people already live. Rehabilitation and preventive care add further demand beyond visits for immediate treatment.

Private pensions seek a larger role

China is encouraging private pensions through tax incentives and new products offered by life insurers. These arrangements allow people to build retirement savings alongside the support they expect from the public pension system.

Participation remains low, but contributions are expected to rise as more people plan for retirement and seek financial security. For businesses, the policy push creates demand for financial products as well as the goods and services retirees buy with their income.

The shrinking workforce and growing number of retirees are putting pressure on pensions and healthcare. Private savings are part of the government's response, while modest pension incomes continue to limit spending for many current seniors, especially outside wealthier urban areas.

Tourism plans target trains and weekday travelers

China's silver tourism market is projected to nearly double by 2028 as older travelers seek leisure and cultural experiences. The China Tourism Academy estimates that seniors account for about 64 percent of weekday travelers, making them a dominant group in domestic tourism during the working week.

The Ministry of Commerce and other agencies have launched action plans to expand tourism trains for older passengers. The plans call for themed trips and services suited to their needs. By 2027, China Railway aims to create more than 100 quality routes and 160 specialized trains for elderly travelers.

Travel gives the silver economy a market beyond healthcare and housing. Retirees seeking cultural visits and leisure trips create demand for transport and tourism services, while their strong presence among weekday travelers makes them an important customer group outside the usual weekend market.

The dated milestones show how the demographic change and business response extend across several years:

• 2022: Deaths outnumbered births in China for the first time in decades.
• 2025: Authorities issued at least 20 policy statements promoting goods and services for older consumers.
• 2027: China Railway aims to have more than 100 quality tourism routes and 160 specialized trains for elderly travelers.
• 2028: The silver tourism market is projected to have nearly doubled.
• 2035: The population aged 60 and above is expected to reach 400 million.

Housing and care attract investment

Senior living communities and care facilities are attracting strong demand, especially in major cities where older residents with higher incomes are willing to pay for comfort and quality. Domestic and foreign companies are investing in luxury senior homes, assisted living and services delivered at home.

The eldercare market is expected to reach US$800 billion in 2025 and exceed US$3 trillion by 2030. Those forecasts describe a broad market in which housing, care and services for daily life are becoming increasingly connected.

Assisted living provides a place to live with help for everyday needs, while care at home brings services to an older person's existing residence. Companies are investing in both approaches as consumers seek different levels of support and comfort.

Government measures include favorable policies, tax incentives and the removal of restrictions on institutions for elderly care owned by foreign investors. The support is intended to expand the supply of quality services and encourage new products as older consumers' demands become more varied.

Policy aims for a market worth 30 trillion yuan

China's leaders place the silver economy alongside the ice and snow economy, covering winter sports and tourism, and the debut economy, centered on new product launches, in their wider effort to support domestic consumption. The silver economy is projected to reach 30 trillion yuan, about US$4.2 trillion, by 2035, accounting for nearly 10 percent of gross domestic product.

At a press conference in January, Liu Ming, director of the Department of Social Development under the National Development and Reform Commission, called for faster development of leading companies in the sector. He also called for better product quality and standards for goods and services suited to older people.

The government is developing statistical systems to track progress and identify gaps in infrastructure and service delivery. Those systems are intended to help authorities measure the sector and locate places where facilities or services fall short.

Subsidies for businesses, tax breaks and fewer barriers to foreign investment in elderly care form part of the support. The aim is to encourage innovation and increase the supply of quality products and services that match older consumers' increasingly diverse and sophisticated preferences.

Businesses face different needs across ages and regions

Jacky Zhu, Head of Retail Research at JLL China, describes young adults, middle aged consumers and retirees as the "new three generations" reshaping the market. Seniors are increasingly active and willing to spend, but stronger consumption also requires innovation across age groups and regions.

Underdeveloped areas with limited retail infrastructure present a particular challenge. Companies must consider where consumers live and what they can afford, rather than building their plans entirely around wealthy retirees in major cities.

The group described as the new elderly, especially people aged 60 to 70, is better educated and more digitally connected than earlier generations. These consumers are receptive to technology and new experiences, giving companies reasons to invest in quality, safety, usability and design instead of relying mainly on cheap products sold in large volumes.

Appliance makers, property developers, healthcare providers and technology companies are increasingly working together on combined services for seniors. Such cooperation connects housing and devices with care and health support. The growth of products and services for older people is also expected to create jobs, with estimates that the silver economy could provide at least 100 million jobs by 2050.

Growth opportunities meet wider economic pressures

China's silver economy offers businesses new customers and ways to improve older people's lives. Its expansion is nevertheless taking place alongside high unemployment among younger people, stagnant wages, rising living costs, weak consumption growth and deflationary pressures, meaning pressure for prices to fall.

Retirees with savings and dependable pensions can support demand, but many seniors remain cautious spenders. Modest average pensions and lower average expenditure than younger households limit how much their growing purchases can offset weakness elsewhere in the economy.

China also faces fewer workers and a declining birthrate, while pension and healthcare needs continue to expand. The silver economy can create markets and employment, but the country's broader economic pressures require responses beyond goods and services for older consumers.

For older residents, the concrete changes range from easier smartphone use and help at home to classes, accessible travel and more care options. For businesses, the task is to serve those needs at different prices and in different places as the population ages.

Key Points

• China has more than 300 million people aged 60 and above, with 400 million expected by 2035, nearly 30 percent of the population.
• Authorities issued at least 20 policy statements in 2025 promoting the silver economy.
• Spending by households headed by people aged 60 and above is expected to have risen 129 percent between 2015 and 2025, compared with 79 percent for the population as a whole.
• Seniors' share of consumer expenditure is projected to rise from 24 percent in 2025 to 34 percent by 2040.
• Companies are expanding healthcare, care at home, technology, classes, toys, housing, travel and financial products for older consumers.
• China Railway aims to develop more than 100 quality tourism routes and 160 specialized trains for elderly travelers by 2027.
• The silver economy is projected to reach 30 trillion yuan, about US$4.2 trillion, by 2035, nearly 10 percent of GDP.
• Modest pensions, unequal spending power and wider economic pressures limit how much senior consumption can offset weakness elsewhere.