How business can benefit from an ageing China

The number of people over 65 years old in China will triple by 2050, here are a few ways businesses will benefit according to Charles Somers, a portfolio manager of demographics at Schroders in an interview with the SCMP.

Agree or disagree, it’s always good to see people foresighted enough to see the opportunities in the ageing populations. Good job Schroders. Here are a few of their observations:

  • Cosmetics or skin care companies such as Estée Lauder would also flourish on the mainland as people looked for ways to make themselves appear younger.
  • Firms that produced baby formula might consider making dairy-based products for elderly people.
  • Retired people also have more time to travel, which will benefit the travel industry and firms that make aircraft engines, such as French firm Safran.
  • Health care products will also be in demand, as older people need more medical equipment and medicines.
  • In the next five years, food consumption on the mainland is expected to increase by 8 per cent per year. Good news for fertiliser makers and meat producers.
  • Spending on dining is expected to increase 18 per cent per year, benefiting firms like Yum Brands, which operates almost 1,000 restaurants on the mainland. The annual growth for dining out was 20.5 per cent in the five-year period.
  • People in urban areas spend more on entertainment, travel more and buy more luxury goods. To prepare for these trends on the mainland, Somers said companies should diversify.