Updated March 18th, 2024 at 10:40 IST

China's ageing population drives surge in elderly recreational market

China's ageing population drives a booming market for recreational activities catering to the elderly middle class, from yoga to smartphone photography.

Reported by: Business Desk
Representative | Image:Freepik
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Grey market thrives: China's rapidly ageing population is fuelling a booming market for recreational classes and activities catering to the elderly middle class, ranging from yoga to African drumming and smartphone photography, while the private tutoring sector faces a decline following government crackdowns in 2021 to address low birth rates.

Mama Sunset, a company specialising in elderly learning, has opened five centres in Beijing since its launch in April 2023 and is in talks with investors to expand to 200 franchised centres nationwide within the next three years, with plans for a listing on the Hong Kong exchange.

Elderly education to spike

According to Frost & Sullivan, China's senior learning market is expected to grow at a compound annual rate of 34 per cent by 2027, reaching 120.9 billion yuan ($16.8 billion), up from 28 billion yuan in 2022.

Quantasing, the largest online elderly learning provider in China, experienced a 24.7 per cent YoY revenue growth for the final quarter of last year, reaching 980.5 million yuan ($136.2 million), with a total registered user base of 112.4 million by the end of 2023, representing a 44.6 per cent increase from the previous year.

Despite these promising numbers, analysts caution that income disparities and reliance on family support could hinder the industry's growth potential. Nonetheless, there is optimism amongst investors and consumers, with many elderly individuals seeing these classes as essential for maintaining their health and delaying the need for nursing homes.

(With Reuters Inputs)

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Published March 18th, 2024 at 10:40 IST