Population ageing is becoming a significant concern worldwide. The global population aged 65 and older grew from 300 million in the late 1980s to over 800 million today, accounting for 6% to 10% of the world's total. Of 800 million older people, nearly 60% reside in Asia, while 20% live in Europe.
The situation in Hong Kong is of particular concern. The city has one of the lowest fertility rates in the world, with a rate of just 0.7 births per woman. As a leader in longevity, the life expectancy at birth in 2024 was 82.8 years for males and 88.4 years for females. The population projections released by the Government indicate that population ageing will continue to be a significant trend. Currently, one in every five Hong Kong residents is an elderly person, and this figure is expected to rise to more than one in three by 2043.
Prospects for Businesses
The demographic shifts will pose critical challenges to society, including rising healthcare costs, an ageing labour force, and a higher old-age dependency ratio. In Hong Kong, recurrent government expenditure on elderly services continues to rise, with this year’s estimate reaching approximately $17 billion – an increase of about 50% from about $11 billion five years ago. The workforce is also ageing, with 500,000 workers aged 60 and over in 2023, representing 15% of employed persons.
However, the ageing population does not necessarily represent a demographic time bomb. People are not only living longer but are also ageing in better health. The elderly population, with higher incomes and wealth, are more willing to spend. The Government noted that spending by people aged 60 and above reached approximately $342 billion in 2024, accounting for 11% of GDP, and predicted that the figure will rise to $496 billion by 2034. The increasing purchasing power of older residents highlights the golden opportunities from the silver economy.
Many economies are working to tap into the silver market, with Mainland China at the forefront of its development. Home to over 200 million elderly citizens – the largest number in the world, Mainland China released its first guidelines in January 2024 for developing the silver economy and improving the well-being of senior citizens.
The document advocates for efforts to broaden food and healthcare services for the elderly, motivate state-owned enterprises to play a more active role in the sector, foster new business models related to “smart” health and elderly care, introduce more financial products for senior citizens, enhance scientific and technological innovation in relevant fields and increase financial support.
The Silver Market in Hong Kong
According to the United Nations, a super-aged society is defined as one in which more than 20% of the population is 65 years old or older. In Hong Kong, the population aged 65 and over accounted for 20% of the total population in 2021 and is projected to increase to 34% by 2046. There is a pressing need to address the ageing population and meet the demands of elderly residents.
To capitalize on the opportunities presented by the silver economy, the Government announced 30 measures in May across five key areas: boosting “silver consumption,” developing “silver industry,” promoting “quality assurance of silver products,” enhancing “silver financial and security arrangements,” and unleashing “silver productivity.”
However, population ageing is a long-term challenge. At the same time, these measures are a crucial starting point; more can and should be done to meet the growing needs of the elderly population. Hong Kong should take the lead in developing innovative silver products and solutions, positioning itself as a testing ground and launch pad for such innovations.
This approach will not only enhance the quality of life for older people locally but also enable our city to export successful models to neighbouring economies and other parts of the world, unlocking new opportunities in the rapidly expanding silver economy.
Doris Fung, dfung@chamber.org.hk