Opportunities from the “silver economy”

Population aging is a persistent concern for many countries worldwide. As this issue has become an irreversible trend, many nations are quickly adapting to turn challenges into opportunities for economic development.

Elderly taking part in morning exercise in Tokyo

The number of people aged 65 and older globally is projected to increase from 761 million in 2021 to 1.6 billion by 2050. By 2030, the elderly population will double the number of children under five.

The Asia-Pacific region is currently experiencing one of the fastest rates of population aging in the world.

The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) forecasts that the percentage of people aged 60 and older in Asia-Pacific countries will rise from 13.6% of the population in 2020 to nearly 25% by 2050.

Rapid aging brings serious consequences for countries, including increased burdens on social welfare systems, significant pressure on healthcare facilities, and labour shortages.

The Japanese government estimates that, with the current trend of an ageing and declining population, the average annual cost of nursing care per person is projected to increase by 75% from 2019 to 2050.

Meanwhile, Germany faces a shortage of approximately 400,000 workers annually due to its aging population.

While population aging poses challenges, it also opens up numerous opportunities if countries proactively develop a “silver economy”, a term that describes the economic activities, products, and services designed for seniors.

Researchers indicate that the Asia-Pacific region is witnessing the fastest growth of the silver economy. The market for the elderly in this region is expected to reach a value of 4.56 trillion USD by 2025.

According to China's Research Centre for Aging, the country’s silver economy is worth approximately 7 trillion CNY (960 billion USD), and it's expected to grow to 30 trillion CNY by 2035.

The silver economy opens up business opportunities to enhance product and service development for the elderly.

Business opportunities span various sectors such as healthcare, real estate, tourism, food, and financial services like insurance and asset management. This consumer group has advantages, such as relatively stable finances, low borrowing needs, low unemployment risk, and high purchasing power.

In China, the government encourages companies to provide goods and healthcare models for seniors while improving nursing home systems.

Recently, sectors related to elderly care in China have experienced explosive growth.

Japan is also implementing a series of policies supporting the silver economy. The country focuses on developing areas for the elderly, such as healthcare and producing high-tech products like smart robots for seniors.

Additionally, the Japanese government is raising the retirement age and encouraging businesses to hire older workers as consultants to leverage their experience while generating income for them.

NDO