China Development and Reform Commission ：China to Increase the R & D and Manufacturing of Elderly Products and Guide the Development of Elderly Industrial Clusters

On December 9, the State Council Information Office of China held a press conference at which relevant heads of various departments introduced the relevant information of The Opinions on Strengthening the Work on Aging in the New Era“. Among them, the head of The Social Development Department of the China Development and Reform Commission said that R & D and manufacturing of elderly products will be increased，in order to guide the development of elderly industrial clusters.

Recently, the government policy has repeatedly mentioned the aging work, which will bring important development opportunities for the elderly care industry. Which sub areas are worth exploring?

In 2020, China’s per capita health care expenditure was 1843 yuan, double the 912 yuan in 2013. With the deepening of social aging, medical devices and health products will usher in continuous incremental demand, occupy a certain market scale in the elderly care industry, and become the core field of incremental consumption demand for the middle-aged and elderly in the future.

The accelerated aging of China’s population, the increase in the incidence of chronic diseases, the imbalance between supply and demand of medical resources and other factors jointly catalyze the new demand for medical equipment. On the one hand, there is a continuous demand for upgrading of hospital dedicated high-end medical devices. On the other hand, with the deepening of aging, home care and continuous treatment for the elderly is also a new trend. Small household convenient medical devices will usher in a period of strong demand. In addition, the combination of artificial intelligence and medical health can improve the level of medical technology, and has been widely used in wearable devices, health management, medical imaging, speech recognition and other fields.

According to The Blue Book of China’s Medical Devices, the market scale of China’s medical devices will reach 734.1 billion yuan in 2020, with a year-on-year increase of 16.8%. The average annual compound growth rate of the market scale of medical devices in the next five years will be about 14.41%. According to this growth rate, the market scale of medical devices will exceed trillion yuan in 2023, reach 1099.4 billion yuan, and reach 1439 billion yuan in 2025.

In 2019, dietary supplements accounted for 55.21% of China’s health care products industry, followed by nourishing health care products, accounting for 33.45%, based on traditional Chinese medicine, including Poria cocos, medlar and other products.

In 2013, the market scale of China’s health care products was only 99.3 billion yuan. By 2020, the market scale has increased by 152% to 250.3 billion yuan. It is expected to grow continuously at a rate of about 10% in the next three years. By 2023, the market scale of health care products can reach 328.2 billion yuan.

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