China's rapidly aging population

No other country in the world is experiencing population aging on the same scale as China. According to the United Nations standard, an aging society is defined as one in which more than 10% of a country's population is over 60 years old, or 7% of its population is over 65. In 1999, the number of people over 60 years old in China reached 167 million, accounting for 12.5% of the total population, becoming an aging society. Ten years later, the number of people over 60 years old reached 254 million, accounting for 18.1% of the total population.

Due to continuous falling birth rates and steeply rising life expectancy, the National Bureau of Statistics has predicted that China's aging population will reach 370 million in 2030, accounting for 25.5% of the total population ^[1].

Portrait of China's aging population

For the elderly, food consumption dominates

Food occupies the most crucial position in all types of consumption due to its close relationship with health and well-being.

According to the "2019-2020 China Food Consumption Trends and Innovation White Paper ^[1]," the average annual consumption of the elderly is 22,600 yuan, of which the daily consumption is 15,560 yuan. Food and catering consumption is 7,972 yuan, accounting for 39% of the elderly's daily consumption, a very high proportion.

More "empty nesters"

Empty nesters are parents whose children have grown up and moved out. According to the 2017 White Paper on China's Elderly Consumption Habits ^[2], there are more than 100 million empty-nesters in China and more than 21 million elderly people living alone in 2016.

Their main sources of information are offline stores, television and recommendations from neighbors.

Increasing access to the Internet

Data from QuestMobile shows that the number of Chinese senior Internet users (aged 50 or above) has exceeded 100 million ^[3]. Social, video and information mobile applications have become essential parts of elderly people's daily life. More than 40% of senior people use Taobao and Alipay for shopping. Short videos are expanding at a significant rate among the elderly. In May 2020, the average monthly usage time of Douyin short video app has reached nearly 1,600 minutes per person. Increasing access to the Internet contributes to the group's exposure to more products.

The expanding needs of particular groups

Special groups are defined as disabled and people with chronic diseases. Currently, there are 40 million disabled and semi-disabled elderly people in China ^[4]. These groups of people are subject to either oral or digestive tract discomfort and decreased sensory functions. For a long time, suitable foods for them were liquids and instant food such as milk powder, oatmeal, and sesame paste.

In addition, 75.8% of the elderly population aged 60 or above in China suffer from one or more chronic diseases ^[5]. The prevalence rate of diabetes in China increased from 2% in 1995 to 5.5% in 2001, 9.7% in 2009, 10.4% in 2013, and 11.2% in 2017. Physical disorder is a key factor in shaping their food choices. For example, people with heart disease and high blood pressure should avoid greasy food, and people with diabetes should avoid food with high sugar content. This in turn will impact their consumption behaviors.

Opportunities in the Chinese elderly food market

At present, China's elderly food market features a few categories and homogenous product portfolios. Instant powder foods (e.g., milk powder) and health foods (dietary supplements) are two major categories, with a smaller portion of senior sugar-free pastry snacks.

In offline supermarkets, the most common elderly foods are milk powder, oatmeal, sesame paste, lotus root powder, and other instant powder products.

Online e-commerce platforms have greater varieties than brick-and-mortar outlets. For example, in Tmall and JD, there are the following three products ranges:

• Health foods: calcium tablets, glucosamine tablets, protein powder;

• Instant powder products: milk powder (camel, goat, high-calcium), lotus root flour, oatmeal, sesame paste

• Snack: Xylitol cookies/cakes, traditional dim-sums

Chinese elderly food market is a lucrative but relatively untapped market. There are three prominent segments:

FSMP (Food for Special Medical Purpose)

In China, 35% of hospitalized cancer patients and 60% of elderly hospitalized patients have nutritional deficiency problems [6]. According to data from the China Nutrition and Health Food Association, 65% of malnourished patients in the United States use special medical food, while only 1.6% in China. FSMP products in China are mainly for infants, with few for the elderly group. Low popularization rate and limited product numbers of FSMP mean opportunities in the Chinese aging society.

Nestlé has launched Jiashan® Jialichang® (佳膳®佳立畅®) 500ml and 250ml in the Chinese market. This is the first liquid whole protein and full-nutrition formula brand for special medical purposes in the Chinese market.

Functional dairy products

Given that this group generally has weak digestive functions, low immunity, poor eyesight, osteoporosis, and other health problems, brands can develop dairy products that can boost absorption, enhance immunity, and fortify bone, blood lipid, cardiovascular and cerebrovascular functions.

Mengniu's high-end adult milk powder brand "You Rui" released four milk powder ranges for middle-aged and elderly people in 2019. It aims to provide dietary support for elderly people who have digestive, bone, and hyperglycemia diseases.

Healthy snacks

The elderly group is at high risk of diabetes, high blood pressure, and cardiovascular disease. To reduce the incidence rate of diabetes in the elderly, brands should pay attention to the sugar content in the product and the glycemic index of food in product development to avoid the rapid rise of postprandial blood glucose.

Want Want has launched a new food brand targeting the elderly over 60 years old. Products include oatmeal, milk, nutritional drinks, protein powder, and rice crackers and the full line are sugar-free. Its milk product adds lutein esters and phytosterol esters, which can protect the retina, prevent coronary heart disease atherosclerosis, and promote cholesterol degradation and metabolism.

***Disclaimer: All images used in this article are from the internet.