Rising Trend: Tutoring Programs Cater to China’s Aging Population
Last Updated on March 18, 2024 5:56 am
As China’s demographic landscape evolves, a burgeoning market is emerging to cater to the needs and interests of its rapidly growing elderly population. With approximately 300 million Chinese individuals expected to retire over the next decade, the demand for recreational classes and activities geared towards the elderly middle class is on the rise.
In a departure from the traditional focus on after-school private tutoring, which faced a decline following governmental restrictions in 2021, companies are pivoting towards serving the silver economy. Mama Sunset, an elderly learning business, has witnessed significant growth since its inception in April 2023, with plans to expand to 200 franchised centers nationwide within the next three years.
Frost & Sullivan forecasts a robust compound annual growth rate of 34% for China’s senior learning market, projecting it to reach 120.9 billion yuan ($16.8 billion) by 2027. This shift underscores a strategic response to China’s demographic shift, where one in every two individuals aged over 65 in the Asia-Pacific region is projected to reside in China by 2040.
Investors are taking notice of the potential in this market, with companies like Quantasing, the largest online elderly learning provider in China, experiencing significant revenue growth and user expansion. Leveraging its customer base, Quantasing aims to diversify its offerings to include products such as traditional medicine and liquor, tapping into the preferences of its elderly clientele.
Government initiatives further underscore the importance of the silver economy, with recent announcements of tax incentives and financial support for products and services catering to the elderly. This involvement reflects a recognition of the economic opportunities presented by China’s aging population.
However, analysts caution that the industry’s growth may face challenges if not accompanied by improvements in retirement incomes and healthcare security. Despite the promising consumer base, deep income inequality and conservative spending habits among Chinese elderly may temper the industry’s growth potential in the near term.
Yet, for individuals like Cui Chunyun, a 60-year-old retired accountant in Beijing, participating in programs like Mama Sunset’s dance classes isn’t just about leisure—it’s about maintaining vitality and independence in later years. As China navigates its demographic transition, the rise of tailored services for its aging population highlights the evolving landscape of consumer needs and opportunities in the country.