Healthy aging is not only a national plan but also a social responsibility. According to the 'Law of the People's Republic of China on the Protection of the Rights and Interests of the Elderly', the elderly have the right to receive material assistance from the state and society, enjoy social services and preferential treatments, and participate in social development and share its fruits. The state and society should take measures to improve various systems that protect the rights and interests of the elderly, gradually improve conditions for ensuring their living, health, safety, and participation in social development, establish a multi-level social security system, and establish and improve a social elderly care service system based on home care, supported by communities, and reinforced by institutions.
The development of healthy elderly care in China mainly relies on the construction of the social elderly care service system, and their development processes are closely related. The government is the core force driving the development of China's elderly care industry. Under policy guidance, the elderly care service system has been continuously developing and gradually maturing. With the improvement of policies and capital attention, elderly care services and products have increased significantly. The healthy elderly care industry has entered a golden opportunity period, with huge market space and comprehensively enhanced demand.
With the extension of China's average life expectancy and the gradual decline in natural population growth rate, the proportion of elderly people in China will continue to increase in the future, further deepening the aging process. The elderly are at the core of the health care industry for the elderly, and the growth in their number creates potential market growth space for the entire industry. In the past five years, the market scale for health care for the elderly has been continuously expanding. Driven by policies and market demand, the market scale will continue to grow rapidly.
Against this backdrop, the '2021 China Health and Elderly Care Industry White Paper' was born, aiming to provide an analysis of the health and elderly care industry, reflect the current development status and overall trends of the industry, offer ideas for enterprises and investors interested in deploying in the health and elderly care industry, and contribute to China's health and wellness cause.
On August 20, 2022, the International Healthcare Summit Forum and the Special Annual Meeting of the Medical Services Professional Committee of the Shanghai Modern Service Industry Federation were held in Shanghai. Mr. Mao Hua, Partner and Managing Director of Frost & Sullivan Greater China, was invited to attend the event and delivered the '2021 China Health Care and Retirement Industry White Paper' at the conference.
Frost & Sullivan Greater China Partner and Managing Director, Huahua
Mr. Mao Hua said that multiple factors are favorable for the healthy development of China's health care and elderly care industry, but at present, market supply and demand are still unbalanced.
From the policy perspective,Since 2019, several opinions and notices have been issued. The formulation and improvement of policies and regulations have promoted the construction of an elderly care service system that is based on home care, supported by communities, and facilitated by institutions, integrating medical care with elderly care. Innovation capital cooperation models are encouraged, while supervision has been strengthened to promote the steady development of the healthy elderly care industry.
From an economic perspective,The urban elderly group has a certain amount of savings and stable pension income. Moreover, the government has continuously increased the basic pension level in recent years. The consumption capacity of the elderly group has gradually improved, their consumption behavior has shifted towards enjoyment-oriented activities, and their need for self-actualization is strong. They are gradually beginning to invest in hobbies and are willing to spend on improving their quality of life.
From the social perspective,The number of elderly chronic disease patients in China is increasing year by year. The elderly have a great demand for elderly care services and age-friendly products, but the supply and demand in the healthy elderly care market are not balanced.
From a technical perspective,The elderly-friendly nature of elderly care products is gradually improving, but the professionalism of health care and elderly care practitioners is difficult to guarantee, resulting in a high rate of talent loss.
According to a survey by Frost & Sullivan, the market scale of China's health and elderly care industry has grown from 2.9 trillion yuan in 2016 to 4.9 trillion yuan in 2020, with an annual compound growth rate of 14.0%. It is expected that this market scale will grow to 9.9 trillion yuan by 2025, with a compound annual growth rate of 15.1% from 2021 to 2025.
Mr. Mao Hua pointed out that the large population base of the elderly brings a huge demographic dividend to the development of the health care and elderly care industry. As China's aging population deepens, the large population base of the elderly group continues to increase, and the demand for health care and elderly care keeps rising. In the future, products and applications centered around elderly services will further develop. At the same time, policy support will accelerate market development. The General Office of the State Council issued the "Opinions on Promoting the Development of Elderly Care Services" in 2019, indicating that the state will promote elderly care services from six aspects, eliminate obstacles in the development process of the health care and elderly care industry, further improve market mechanisms, and perfect the elderly care service system to promote rapid industry development.
"In addition, the future health care and elderly care industry will be optimized and upgraded towards smart elderly care and integration of medical care and elderly care."Mr. Mao Hua further explained that intelligent elderly care relies on advanced technology, gathering people, objects, information, and services through the construction of platforms. It transforms elderly care services from traditional manual to intelligent and automated processes, improving the convenience and accuracy of elderly care services, enhancing resource allocation efficiency, and promoting the transformation and upgrading of the elderly care industry. When elderly care services are separated from medical services, it is difficult for the elderly to receive both living care and medical care simultaneously. The integration of healthcare and elderly care connects the two, allowing the elderly to receive medical services in a familiar living environment, facilitating their diagnosis, treatment, and care, better meeting the needs of the elderly population, and promoting the development of the healthy elderly care industry.
Professor Zhu Tongyu, Deputy Dean of Shanghai Medical College at Fudan University and Director of the Medical Services Professional Committee of the Shanghai Modern Service Industry Federation
Professor Zhu Tongyu, Deputy Dean of Shanghai Medical College at Fudan University and Director of the Medical Services Professional Committee of the Shanghai Modern Service Industry Federation, wrote a message for this report. He said, "I am very pleased to see that the Medical Services Professional Committee, Frost & Sullivan, and LeadLeo Research Institute have jointly released the '2021 China Health and Elderly Care Industry White Paper'. It provides a comprehensive and in-depth market analysis from an industry overview to sector conditions, looking ahead to the future development direction of China's health and elderly care industry. Whether it is from the research data or the extracted conclusions, it has certain reference value for the future of China's health and wellness industry. I hope that the annual white paper can be used as an industry brand to continuously focus on the research and analysis of the current development status and overall trends of the elderly care industry, contributing to China's health and wellness cause."
In the future, Frost & Sullivan will continue to pay attention to the market of China's health and elderly care industry. As Dr. Wang Xin, Global Partner at Frost & Sullivan and President of Greater China, Founder and Chairman of LeadLeo, said, 'Frost & Sullivan, in collaboration with the Medical Professional Association and the LeadLeo Research Institute, jointly released the '2021 White Paper on China's Health and Elderly Care Industry'. The aim is to reflect the current development status and overall trends of the industry through a comprehensive analysis of the health and elderly care sector, providing ideas for enterprises and investors interested in deploying in this area.'The Greater Health Industry is one of the core areas of focus for Frost & Sullivan, aiming to jointly promote innovation and upgrading of China's health and wellness industry through professional capital and consulting services.
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