The Hong Kong Trade Development Council (HKTDC) has released a comprehensive survey revealing the substantial growth potential of China's silver economy, with mainland senior consumers demonstrating strong spending power and a pronounced willingness to pay premium prices for Hong Kong products and services. The survey, which involved more than 2,000 middle-class and affluent senior consumers across various mainland cities, indicates this demographic represents a significant market opportunity for Hong Kong businesses.
According to the survey findings, the Chinese Mainland's silver economy is currently valued at about RMB7 trillion, accounting for approximately 6% of overall GDP. This figure is projected to surge to RMB30 trillion by 2035, highlighting the segment's substantial development potential. Respondents' average monthly expenditure on daily consumer goods and services was approximately RMB7,000, rising to RMB8,000 for those residing in first-tier cities.
The survey reveals that mainland senior consumers hold Hong Kong brands in particularly high regard, with 78% of respondents willing to pay a premium for Hong Kong-sourced products and 84% willing to do so for the city's services sector. Typically, respondents indicated willingness to pay a 16.4% premium on products and 15.4% premium on services, with those in first-tier cities prepared to pay even higher percentages for many product and service categories.
Bruce Pang, HKTDC Director of Research, emphasized the alignment with national priorities, stating that the 15th Five-Year Plan focuses on boosting domestic demand as a means of driving economic growth, creating opportunities for Hong Kong companies looking to expand into the Chinese Mainland market. The complete survey report is available at https://research.hktdc.com/en/article/MjI2ODIyMDg0Nw.
Hong Kong products are celebrated for their quality and authenticity among mainland senior consumers, with 61% of respondents having purchased Hong Kong products in the past year. Popular categories included health foods (24%), luxury goods (18%), and beauty and personal care products (17%). Regarding future purchases, respondents expressed greatest interest in Hong Kong health foods, leisure foods, and beverages.
In the services sector, 54% of senior respondents reported utilizing Hong Kong services in the past year, including beauty and personal care services (25%), travel to Hong Kong, Macao and Taiwan (22%), and financial and wealth management services (20%). Over the next 12 months, the most sought-after Hong Kong services relate to health and wellness, followed by beauty and personal care services.
Wing Chu, HKTDC Deputy Director of Research who led the study, noted that more than half of surveyed consumers had purchased Hong Kong products or services, contributing to the strong reputation of Hong Kong brands. The survey also examined consumer priorities, finding that 65% of respondents prioritize products or services that enhance leisure or bring happiness, while 63% value reasonable pricing and good value for money, and 62% focus on practicality and durability.
HKTDC Economist Eric Chu advised that Hong Kong businesses can leverage the silver economy by capitalizing on the strong reputation and professional advantages of the city's brands. He recommended expanding into higher-spending first and second-tier cities while targeting the younger segment of the senior population, enhancing offline experiences, fostering word-of-mouth recommendations, and optimizing promotional efforts.
Despite the popularity of online shopping across the mainland, the survey showed that physical stores remain the primary consumption channel for the more elderly demographic, with offline experiences, in-person consultations, and trust in products and services remaining prime considerations. Additional HKTDC research resources can be accessed at http://research.hktdc.com/en.
The HKTDC has incorporated silver economy elements into various exhibitions and forums to help businesses capitalize on market opportunities. A thematic seminar on healthy ageing was held as part of the Asia Summit on Global Health, while the Rehabilitation and Elderly Care zone at the Hong Kong International Medical and Healthcare Fair featured the latest gerontechnology products. The Hong Kong Electronics Fair (Autumn Edition) showcased fitness and health products relevant to the senior market.
In January, the Hong Kong Toys & Games Fair introduced a new "Happy Ageing" label for silver market products, making it easier for buyers to identify toys and related products designed specifically for older consumers. The Asia Toys & Games Forum hosted discussions by international experts on optimum toy design for the elderly while offering insights into the silver-focused toy market. The HKTDC will continue providing comprehensive support to enable enterprises to explore and develop opportunities in the growing silver economy market.
