In recent years, with the steady growth of the economy, disposable income among Chinese residents has continued to increase, and a wave of consumption upgrading has also arrived. Against this backdrop of consumption upgrading, women consumers in China have significantly increased their attention to postpartum physiological and mental health management, and their understanding of professional postpartum care has also been continuously growing. At the same time, the market for maternity centers in China has maintained rapid growth, and the high-end demand for postpartum care by the new generation of mother and baby consumers is gradually emerging. Mid- to high-end maternity centers have begun to expand rapidly, and the industryMatthew EffectIt is becoming increasingly apparent.
Based on research and analysis of the China postnatal care center market in 2021, Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan') released the '2021 China Postnatal Care Center Industry White Paper', which delves into the development opportunities brought about by consumption upgrading and fertility policies for China's maternal and infant health management service industry.
Overview of China's Maternal and Infant Industry
With changes in family structure, the enhancement of mother and baby consumption awareness, and the diversification of mother and baby products and services, the definition of China's mother and baby industry is constantly expanding. The traditional consumer group consists of infants aged 0-14 and women aged 20-34, while the broad definition of the mother and baby consumer group refers to infants aged 0-18 and their family members. The mother and baby industry is an industry centered around products and services for pregnant women, new mothers, infants, and young children. It spans the entire pregnancy and childbirth cycle as well as the growth period of infants and young children, capable of meeting various needs such as clothing, food, housing, transportation, medical care, education, entertainment, etc. It can be subdivided into two main aspects: mother and baby products and mother and baby services. Since the consumption demand for mother and baby products and services will always run from preconception to a child's growth until they reach the age of 18, the needs of mothers and infants for products and services vary at different times. Mother and baby products can be further subdivided into food, clothing, consumables, and durable goods, while services can also be subdivided into health management, medical services, mother and baby life, and other services.
Source: Frost & Sullivan research
The report points out that in the past five years, with economic growth and an improvement in residents' consumption levels, the market scale of China's maternal and infant industry has continued to expand.In 2021, the market scale of China's maternal and infant industry will reach nearly 4.2 trillion yuan, with the market scale of maternal and infant products at about 2,085.1 billion yuan and the market scale of maternal and infant services at about 2,154.5 billion yuan.With the advent of consumption upgrading and the diversification of maternal and infant services, the market for maternal and infant services has entered a period of rapid expansion. The overall market size increased from about 1,095.6 billion yuan in 2016 to 2,154.5 billion yuan in 2021, more than doubling with an annual compound growth rate of 14.5%. In terms of segmented markets, between 2016 and 2021, the market size for health management services increased from 20.2 billion yuan to about 36.6 billion yuan, with an annual compound growth rate of 12.6% during this period.
In August 2021, the Standing Committee of the National People's Congress voted to pass the three-child policy.It is expected that this policy will gradually penetrate Chinese households starting from 2022. Driven by this policy, it is estimated that China will enter a new baby boom cycle in 2023. Based on observations after the full implementation of the two-child policy, it is anticipated that this baby boom will last for 3 to 5 years.Meanwhile, Chinese families' awareness of maternal and infant health management services is continuously maturing, and more and more families are choosing to purchase these services.In summary, with the expansion of the consumer base and the continuous improvement in the penetration rate of maternal and infant health management services, the market for maternal and infant health management services in China will experience rapid growth.
Source: Frost & Sullivan research
Overview of the Chinese Postpartum Care Center Industry
Currently, maternal and infant health management services are provided from the perspectives of physical examination, improvement of living habits, balanced dietary nutrition, etc., to offer pregnancy management and other daily support services for pregnant women and infants. The service system of the maternal and infant health management industry has covered the complete cycle from pre-pregnancy, pregnancy, to postpartum, mainly including physical examination centers, maternity centers, domestic service nannies, and other services.
A postpartum care center is a facility that provides living care services for new mothers and newborns. The service content mainly includes maternal and infant health care, postpartum diet, breastfeeding, postpartum body shaping, etc. Specifically, after new mothers and infants are admitted to the postpartum care center, they are generally equipped with professional staff for round-the-clock nursing services, and professional dieticians prepare nutritious meals for them. At the same time, new mothers can also enjoy services such as postpartum body repair and psychological counseling according to their own needs. Newborn babies also require professional care to assist in breastfeeding. With the improvement of people's living standards and the emphasis on healthy aesthetic concepts, modern women pay increasing attention to postpartum body recovery, mental health, and scientific care. Therefore, postpartum care centers that provide scientific, professional, and comprehensive care services have become the choice for many families' postpartum care.
According to the analysis, the consumer group of maternity centers has the following three major characteristics: First is low frequency: Maternity center services are generally consumed once or a few times at a time, making it less likely for them to be repurchased compared to other types of consumption; second is high consumption: Since maternity centers can provide scientific and professional mother and baby care services, equipped with professional staff and comfortable environments, they have the characteristic of high unit price per customer; third is that consumers consider many factors when choosing a maternity center, resulting in a longer decision-making time.
Source: Frost & Sullivan research
Between 2016 and 2021, the Chinese postpartum care center industry experienced rapid development, with the market size increasing from 6.76 billion yuan to approximately 17.8 billion yuan. During this period, the annual compound growth rate was 21.4%, far exceeding some consumer healthcare sub-sectors such as (ophthalmic services, dental services, medical aesthetics services), etc. It is expected that from 2021 to 2025, the industry will grow rapidly at an average annual compound growth rate of 47.0%, reaching 831.5 billion yuan in 2025 and 1884.1 billion yuan in 2030. Driven by the wave of consumption upgrading, the high-end demand for postpartum care among a new generation of consumers is gradually emerging, and chain-style postpartum care centers that provide high-quality professional postpartum care services have also begun to appear on the market, with their scale rapidly expanding.
The consumer group of maternity centers has three major characteristics: low frequency visits, high consumption, and a long decision-making cycle. Therefore, it is not difficult to see that most consumers of maternity centers are not price-sensitive. As a result, they tend to choose mid-to-high-end brands with established brand recognition because compared to mass-market maternity centers, mid-to-high-end centers offer advantages such as professional teams, comfortable environments, and high-quality services.
Looking at the segmented market of maternity centers, mid-to-high-end centers have shown strong growth. The market size increased from 2.43 billion yuan in 2016 to 7.65 billion yuan in 2021, with an annual compound growth rate as high as 30.4%. It is expected to reach 45.73 billion yuan and 122.47 billion yuan in 2025 and 2030 respectively. In contrast, the growth rate of mass-market maternity centers has been slightly slower. From 2016 to 2021, the market size increased from 4.33 billion yuan to 10.15 billion yuan, with an annual compound growth rate of 16.5%.
Source: Frost & Sullivan research
The report points out that postpartum care institutions are often located in densely populated areas, which are economically developed, rich in medical resources, and have strong consumer capabilities. Mid-to-high-end maternity centers are mainly concentrated in first- and second-tier cities. From 2016 to 2021, the first- and second-tier markets accounted for more than 90% of the overall market for mid-to-high-end maternity centers.With the development of China's economy and the steady advancement of the goal of common prosperity, the gap in consumption levels between other cities and first- and second-tier cities will narrow. Against this macroeconomic backdrop, it is expected that the demand for mid-to-high-end postpartum care services in other cities will also grow. At the same time, as mid-to-high-end maternity centers form economies of scale, they will expand into other markets.It is expected that the contribution ratio of other cities in the mid-to-high-end maternity center market will continue to rise during the period from 2021 to 2030, rising to 15% by 2025 and 20% by 2030.
Source: Frost & Sullivan research
Developed countries and regionsAnalysis of the Development Process of Maternity Centers
Between 2010 and 2020, due to economic and social development, the fertility intentions of young people declined, leading to a downward trend in both the number of births and birth rates in South Korea and Taiwan, China. However, due to the increase in the proportion of small families and the postponement of childbearing age, there has been a heightened emphasis on postpartum care within families. During the same period, the penetration rate of postpartum care generally showed a steady upward trend, maintaining above 50% levels in both regions from 2010 to 2020. Therefore, driven by the rising penetration rate of postpartum care, maternity centers, which are the preferred places for consumers after childbirth, have also shown rapid development potential. The number of maternity centers generally increased between 2010 and 2020.
Source: Frost & Sullivan research
Driver factor analysis
Analysis suggests that in recent years, the family structure in our country has gradually concentrated towards smaller-scale households. Such families tend to seek third-party professional postnatal care services more often when taking care of newborns and mothers. Similar to the changes in family structure in developed countries and regions mentioned earlier, the situation where three generations lived together was gradually disappearing. In the past decade, the proportion of small-scale household units with three or fewer people has been continuously increasing, reaching a total share of 76% in 2020. Due to the need for parents of small-scale families to take care of newborns and mothers on their own due to contemporary family needs, they face dual pressures from busy work and lack of nursing experience. At the same time, to avoid potential conflicts within the family, more and more families tend to seek professional postnatal care institutions.
Source: Frost & Sullivan research
Consumption upgrading and the enhancement of women's consumption concepts have promoted the demand for maternity centers. Consumers in first- and second-tier cities are showing a trend towards diversification and specialization, presenting development opportunities for mid- to high-end institutions.In recent years, with the steady growth of the economy, disposable income among Chinese residents has continued to increase, leading to a boom in consumption upgrading. Female consumers in China have significantly increased their attention to postpartum physiological and mental health management, and their understanding of professional postpartum care is also growing. More new mothers prefer targeted postpartum care and repair services provided by postpartum care institutions. Especially in first- and second-tier cities, consumers have more specialized and diverse service needs, including for rectus abdominis separation.Pelvic floor muscle repairFor postpartum shaping programs, mid-to-high-end postpartum care institutions with complete equipment and professional staff can meet consumers' potential needs in this area and will face development opportunities in the future.
Source: Frost & Sullivan research
competitive landscape
The competitive landscape of the maternity center industry in China is extremely fragmented, with most leading players focusing on mid-to-high-end brands. Looking at the compound annual revenue growth rate from 2019 to 2021, most maternity centers are in a positive growth trend. It is worth noting thatsan beraIt is the fastest-growing enterprise within the mid-to-high-end maternity center group.According to the report, in 2021, the top three players in the industry accounted for 5% of the market share. We expect that future industry development will tend towards concentration, with leading players occupying a larger market share, reaching around 20% by 2030. The concentration of the top three players in the mid-to-high-end maternity center market will reach about 35% by 2030.The light-asset operation model will bring opportunities for low-cost and rapid expansion to maternity centers. The rapid development of the Chinese economy, the upgrading of per capita consumption, and the increasing penetration rate of maternity centers will drive further development of this industry.
