In the Silver Hair Economy, The Market Potential of Elderly Food

According to data from the seventh national census of the People's Republic of China, by the end of 2020, the elderly population aged 60 and above in China will reach 264 million, accounting for 18.7%, equivalent to 1 in 6 people being an elderly person. According to projections by the United Nations Population Division, this figure is expected to rise to 400 million by 2035, equivalent to 1 in 3 people being an elderly person.

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As China enters an aging stage, the consumption potential of the elderly population is also growing. According to data from iiMedia Research, the market size of China's elderly care industry has been increasing steadily and is expected to exceed 10 trillion yuan by 2022. McKinsey & Company's “The Future of Asia: 7 Demographic Groups Shaping China's Consumption Landscape” also mentions that elderly Internet users are among the “7 demographic groups driving China's consumption growth,” and the 25 million elderly people with higher incomes will directly promote growth in China's medical, housing, leisure, and other fields.

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On the other hand, according to the “2019-2020 China Food Consumption Trends and Innovation White Paper,” the elderly group spends an average of 22,600 yuan per year, of which 7,972 yuan is spent on food and dining. Food-related consumption accounts for 39% of the elderly's daily consumption, which is a very high proportion. Therefore, the “silver hair economy” has become an industry with huge potential, as well as the most important social trend and emerging economy in China's next stage. With the promising prospects of the silver hair economy, the elderly food market is gradually developing.

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However, there are still some obvious problems with elderly food, such as a relatively single category, mainly milk powder, health food, rice porridge, oatmeal, etc., and there are not many foods that truly match the consumption needs of the elderly. Another example is the relatively aging product functions. “Health” and “nutrition” have become the key to brand development of elderly food, and “sugar-free”, “high calcium”, “vitamins” and “minerals” have also become essential labels for elderly food. Although the elderly have a high consumption of food and a great demand for it, the current market is not rich or professional enough in terms of foods specifically for the elderly group, and there is an imbalance between supply and demand.

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However, the current market for foods specifically targeting the elderly is not yet rich or professional enough, and supply and demand are still not in balance. Moreover, when elderly foods are advertised, they are more often associated with gifts, and the consumer group is more often targeted at younger people. At the same time, there is a lack of standards and regulations. In September 2018, the National Health Commission issued the General Principles for Elderly Foods (draft for comments), but for various reasons, no official standards have been issued to date, and there is no support for the development of exclusive elderly food products. Therefore, for the elderly food market, there is a need to further enrich products and meet demand in the future. In addition to meeting basic nutrition, it should also cater to more functional needs, such as bone health, intestinal health, cardiovascular health, etc., in order to help the market grow further and better meet consumer expectations.

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As people age, they inevitably experience a gradual process of ageing, which may lead to more health problems. Moreover, healthy eating has gradually become a consensus for the whole family. Based on these needs, improving diet has become an option for many people, which has also promoted the development of elderly food. A behavioral study focusing on the diet of the elderly pointed out that 64% of the elderly are making greater efforts than ever before to eat healthily, and 42% of the elderly rely on dietary therapy to relieve their pain. Therefore, a sensible diet is a key factor in promoting healthy ageing.

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01?Current situation of functional foods for the elderly

China's elderly food market is still in its infancy, and there is a lack of functional foods for the elderly. The development of functional foods for the elderly in China has gone through four stages.

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Starting stage (early 1980s): China's health food industry was in its infancy, and the main products were tonics.

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Growth stage (early 1990s): With the rapid development of the domestic economy, functional foods for the elderly gradually entered a stage of rapid growth.

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Crisis of confidence (late 20th century): Due to false advertising of product functions, the functional food industry fell into a crisis of confidence.

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Renaissance (2003 to present): Foreign health food giants entered the Chinese market, and China's health food industry ushered in a new round of development opportunities. At the same time, China's sustained high economic growth and people's increasing awareness of health have further driven the rapid development of the functional elderly food industry.

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02 The real needs of the elderly population for food

Health needs: As people age, their physical functions decline, so the need to support a healthy body increases with age. The need to awaken the taste buds: The national initiative to promote “three-less foods” has led to foods that are “less salt, less sugar, and less oil,” which older people find “tasteless.” This seriously affects their appetite, interfering with eating and leading to malnutrition. Therefore, the taste and flavor of elderly foods should be richer and more pronounced to stimulate the taste buds of the elderly. The need for swallowing function: The chewing and swallowing ability of the elderly gradually weakens. Therefore, elderly food should diversify the types of easy-to-eat food, so that the elderly can eat better and improve malnutrition. Food softening technology and using easy ingredients to chew and swallow can allow the elderly to taste a variety of foods easily. The need for convenient packaging: Due to insufficient muscle and bone strength, some conventional packaging forms are difficult for the elderly to open. Therefore, while ensuring the airtightness of the food, it is also necessary to allow the elderly to easily take out the food.

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03 Development direction of elderly food

Enhance bone health

According to the results of a Chinese epidemiological survey on osteoporosis, there is a large population of people with low bone mass in China, and the low bone mass rate of people over 50 years old is 46.4%. A related report by Mordor Intelligence also shows that the incidence of osteoporosis and bone damage in the elderly is rising.

Ingredients:

Bone strengthening: calcium, isoflavones, vitamin D, vitamin K2, casein phosphopeptide (CPP), fructooligosaccharides, collagen, quercetin, collagen mineral salt complex, egg shell membrane, colostrum, glucosamine, chondroitin, proteoglycans, hyaluronic acid, milk basic protein (MBP), magnesium, etc.;

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Joint repair + pain relief: glucosamine, collagen, chondroitin sulfate, hyaluronic acid, methylsulfonylmethane (MSM), krill oil, S-adenosylmethionine (SAMe), boswellia, olive, Universtin (scutellaria and uncarina) etc.

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Muscle strengthening: coenzyme Q10, carnitine, imidazole dipeptide, astaxanthin, creatine, amino acids, peptides, proteins, omega-3, branched-chain amino acids (BCAA), guava, tart cherry, pea protein, calcium beta-hydroxy-beta-methylbutyrate (HMB), etc.

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Cognitive enhancement

As we age, our cognitive abilities decline further, generally due to an increase in neuronal loss in the brain. According to data from the International Alzheimer's Disease Association, the number of people with Alzheimer's disease worldwide exceeded 50 million in 2018. In China, 9.5 million people were suffering from Alzheimer's disease in 2015, and it is estimated that the number of sufferers will reach 30 million by 2050. The ingredients include DHA, EPA, ARA, phosphatidylserine (PS), plasmalogen, acetylcholine, 5-hydroxytryptophan (5-HTP), onion extract (contains prostaglandin A), coenzyme A, bilberry source anthocyanins, ginkgo biloba leaf source flavonol glycosides, ginkgo biloba leaf source terpene lactones, gamma-aminobutyric acid (GABA), histidine, pseurotin, curcumin, orange peel oil, etc.

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Maintain intestinal vitality

During the aging process, the composition of the human intestinal microbiota and the variability of innate bacteria have undergone significant changes, and these changes have had a variety of profound effects on digestive function, inflammation, and overall immunity. Raw materials include probiotics, dietary fiber, inulin, fructooligosaccharides, xylo-oligosaccharides, resistant dextrin, etc.

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Increase protein intake

As one of the three major nutrients required by the human body, protein is essential for the skin, bones and organs of the human body. Its functions include repairing and maintaining cells, producing hormones and enzymes, transporting and storing small molecules in cells throughout the body, helping wound healing and producing antibodies to fight disease. Therefore, a lack of sufficient protein in the diet can lead to reduced body reserves, weak skin, decreased immune function, poor wound healing and prolonged recovery from illness. According to the “Analysis of Protein Intake of Chinese Residents Aged 60 and Above from 2010 to 2012” released by the Nutrition and Health Research Institute of the Chinese Center for Disease Control and Prevention, the average daily protein intake of Chinese residents aged 60 and above is 55.79g. Compared with the Recommended Dietary Protein Intake (RNI) for Chinese residents, the overall compliance rate of residents aged 60 and above is 35.99%; the daily intake of high-quality protein by residents aged 60 and above accounts for 38.88% of the total protein.

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It can be seen that more than 60% of elderly people aged 60 and above in China not only do not consume enough protein, but also do not consume enough high-quality protein. At the same time, a Kerry research report shows that 40% of consumers in the Asian market associate protein intake with healthy aging, bone/joint health, immunity and skin/beauty benefits; about 84% of consumers are willing to pay a higher premium for protein products, and protein quality is the biggest driving force for 60% of consumers to buy. When choosing a protein product, it is necessary to ensure that it is of high quality, has a small molecular weight, and is quickly absorbed. It should also have antioxidant and immunomodulatory effects, not only to slow down aging, but also to enhance immunity.

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04?Technical focus of elderly food

Under the layout of the “Healthy China 2030” plan, the nutrition and health industry has put forward new technological demands for nutritionally functional foods. Targeting the elderly, the development of new nutritionally functional foods improves and enhances the nutrition and health of the elderly, providing nutritional security for the elderly and meeting the strategic needs of the country to solve the social problem of aging. It has important economic and social benefits.

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It should be easy to chew, swallow, and digest, in line with the characteristics of the elderly's declining physiological functions.

The focus should be on developing elderly foods with Chinese characteristics, such as medicinal foods and traditional ingredients.

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The taste should satisfy the elderly, and should be light and flavorful.

A multi-type product structure should be formed, such as nourishing, preventive, and therapeutic types; tea drinks, canned foods, pastries, and instant mixes.

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In short, in terms of food development, it is necessary to establish an effective functional system based on the characteristics of the elderly group, improve food processing technology, optimize the construction of functional foods that prevent constipation and chronic diseases, maintain the development of personalized data systems, and maintain precise health and nutrition management.