Category
- ✏️ Research
Date of issue
Nov 4, 2024
1.
Current Status of the Senior Business Market
1-1. The emergence of new seniors
In the early 2000s, the senior business began to attract attention as a significant market with the advent of an aging society. At the time, many companies announced various strategies targeting seniors, anticipating that the growing senior population would lead to the emergence of new consumers. According to global consulting firm McKinsey, consumers aged 60 and older spend more per capita than younger generations due to higher healthcare costs. They also predicted that they would contribute more than 40% to overall consumption growth in sectors such as housing, transportation, and entertainment. Despite these expectations, however, the growth of the senior industry has been slower than expected. Experts point out that the three key factors that have not been fully addressed are the size of the senior population, economic power, and sustainability.
However, the senior business market has recently undergone significant changes. In particular, the emergence of young seniors, particularly those born in the 1960s—Korea's wealthiest generation—as power consumers has begun to shift the market landscape. Currently, young seniors number 8.6 million (18% of the total population). In just 10 years, when those in their 50s join the senior population, the number of active seniors (those who lead healthy and active retirements) is expected to reach nearly half of the total population. This signifies that the senior market is no longer confined to a specific age group, but rather has become a significant market that impacts society as a whole.
# Characteristics of existing and new senior generations
Division | Existing seniors | New Senior |
Generational characteristics | Passive, conservative, homogeneous | Active, diverse, and future-oriented |
Economic power | Dependent, low-economic class | Thick layer of independent, economically powerful people |
Old age consciousness | The twilight of life | The beginning of a new life |
Values | Recognize yourself as an older person | I think I'm 5-10 years younger than my actual age. |
Consumer view | Frugality | Rational consumption lifestyle |
Hobbies | No hobbies, same generation interaction | Diverse hobbies, cross-generational interaction |
Leisure center | Work-oriented, lack of leisure time | Living a life that values leisure |
Travel | Group travel preferred, filial piety travel centered | Leisurely couple's trip, independent travel |
Retirement preparation | By the children's generation | Preparing for retirement on your own |
Assets held | Inheritance to children | Use it to prepare for your retirement |
Active seniors, comprised of highly educated, high-income baby boomers, have a strong desire for well-aging. Current active seniors are expected to lead the change in "self-consumption" for well-aging, and expectations are growing for a "service market for active seniors themselves." Since the COVID-19 pandemic, digital device usage has grown rapidly, particularly among those in their 50s and 60s. In terms of YouTube usage time, those in their 50s (25.4%) have already surpassed those in their 20s (23.3%). Furthermore, those in their 50s and 60s are showing the highest growth rates among all age groups in both online card and OTT payments. As digital literacy grows, demand for digital content is increasing among seniors to relieve their boredom and anxiety. One survey found that the most desired app for middle-aged adults in their 50s and 60s was "content subscription apps for books and magazines." This digital shift represents an area where companies can leverage IT to address well-aging needs. There are likely to be opportunities for services that closely reflect the cohort-specific characteristics and preferences of active seniors in lifestyles like fashion, food, and leisure. Furthermore, while not widespread, a well-dying culture is also evolving, incorporating cutting-edge technologies like AI memorial services alongside well-aging.
그림 1. 5060의 디지털 활용 역량 변화 출처: 하나금융경영연구소
As technologies like artificial intelligence (AI) rapidly evolve, the convergence of aging tech and senior businesses, which aim to improve the quality of life for seniors, is expected to gain traction. In particular, seniors, who are familiar with the digital environment and have experience with personalized solutions, are expected to contribute to the creation of blue ocean markets with their relatively ample time and cash flow.
1-2. Senior Business Market Scope
What markets are forming the senior business? According to the Nissei Basic Research Institute, the senior business is diversely distributed across age groups, allowing the industry to expand beyond just providing support services to frail elderly individuals. It can be broadly categorized into health, comfort, and lifestyle support, and can be further segmented by age group and related needs. Below is a market distribution chart of the senior business released by the Nissei Basic Research Institute.
그림 2. 시니어 비즈니스 시장(재가공) 출처: 닛세이기초연구소
1-3. Trends in the Overseas Senior Business Market
Companies in advanced countries around the world, which entered aging societies before Korea, are responding to the aging population by establishing senior businesses in various markets. In particular, many companies are proactively designing products and services that address even the smallest details that seniors may find inconvenient. Rather than emphasizing "senior-only" features, they are pursuing "senior-friendly" designs that address the needs of seniors in less visible settings.
# Overseas examples of 'senior-friendly' products and services by industry
Industry | Detail |
Hypermarket | Store opening hours are brought forward to accommodate seniors who are active early in the morning. |
Supermarket | Creating a senior-friendly shopping environment, including reducing escalator speeds and adjusting aisle widths for electric wheelchairs. |
Online shopping | We operate a senior-only corner and specialize in selling senior-only fashion, hobby life, and health products. |
Food | Considering the chewing power, the contents are cut into small pieces or released in the form of crushed mousse. |
Cosmetics | • Attach a magnifying glass inside the product • Adjusting the font size of cosmetic instructions |
Home appliances | • Enlarge text and icons on your PC • Simplify your product by reducing the number of software by 40% |
Below, we will explain senior market trends by country.
(USA) The country with the largest senior market size
Approximately 80 million baby boomers (born 1946-1965) are expected to reach the age of 65 and older. In the United States, baby boomers possess greater assets and pension income than their descendants, Millennials and Generation Z, indicating strong spending power even after retirement. Demand for cutting-edge medical and healthcare products and services, such as biotechnology-based medical products and regenerative medicine, is high, and they are expected to emerge as a key driver of growth in the pharmaceutical and healthcare industries. Furthermore, the growing desire to live in one's own home is expected to drive demand for home care products.
(Japan) The country with the highest aging population
Due to the positive purchasing power resulting from asset accumulation and the growing number of active seniors, the share of household consumption by those aged 60 and older is expected to steadily increase, reaching 47% by 2030. In particular, Japan's elderly population boasts a homeownership rate of over 90% and holds 59.5% of total financial assets. Consequently, the Japanese silver market is actively developing products and services that cater to the needs of seniors across various sectors, including daily living, housing, healthcare, and travel. In the daily necessities market, "universal design," which is designed to be convenient for everyone regardless of health or age, is expanding, and products tailored to the elderly are forming a robust market.
(China) the country with the largest elderly population
China has experienced three baby boomers throughout its history, and its population is expected to rapidly age as the population born during the second baby boom (1962-1976) begins to enter the elderly population. China's silver generation, often referred to as the "silver-haired economy" consumers, is a generation that has begun to embrace foreign cultures and has achieved economic autonomy, and is considered to possess strong consumer trends and potential. The purchasing power of the elderly is projected to expand from 26.7 trillion yuan in 2030 to 106.7 trillion yuan in 2050. In particular, purchases in the beauty, health, and fashion sectors are on the rise, and the proportion of online shopping is on the rise.
(EU) Building a Silver Economy Ecosystem
The EU's silver economy was worth $3.7 trillion in 2020, with over 10% of that figure going to public spending on seniors. Based on population projections, this figure is projected to grow by approximately 5% annually, reaching $5 trillion by 2030. In the EU, the silver economy is part of the general economy, encompassing all economic activities directly purchased by people aged 50 and over, including products, services, and economic activities that meet their needs. It is showing a growing demand for care services, healthcare, and robots.
그림 3. 2020년과 2030년의 실버 시장 규모 (단위: 천억 달러)
1-4. Trends in the Domestic Senior Business Market
Currently, the senior business in Korea is expanding into various services centered around "care services" and "services for active seniors themselves." Services catering to active seniors have been on the rise, particularly recently. This is because the baby boomer generation, which makes up Korea's current senior population, is highly educated and earns a high income, and has a strong desire for well-being. Furthermore, their perception of traditional parental care differs from that of previous generations.
According to the 2022 Korea Welfare Panel Survey, only 3.12% of respondents strongly agreed with the statement, "Children are responsible for supporting their parents," while 18.27% agreed. This suggests a shift in values among the new senior population, along with a growing tendency to take charge of their own lives.
First, in the care market, you can find startups that have attracted investments of 10 to 30 billion won. These services are categorized into provider-centric and consumer-centric, and representative examples of each are listed below.
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Provider-centric services: Administrative automation solutions to improve facility operational efficiency, a nursing assistant recruitment platform, home visit nursing and day/night care center franchise services, nursing assistant and caregiver matching services, and a platform for providing facility and welfare equipment information.
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Consumer-centric services: hospital and out-of-home escort services
Second, there is growing market anticipation for services catering to active seniors themselves. Opportunities are expected for services that reflect the cohort-specific characteristics and preferences of active seniors in areas such as fashion, food, and leisure, and that have a clear identity targeting customers seeking differentiated services. Below, we summarize seven key characteristics of active seniors, as defined by TBWA.
1.
Ageless: The desire to enjoy a lifestyle that transcends age, rather than living conservatively due to age.
2.
Accomplished: The desire to spend the rest of one's life actively participating in the community and society and achieving valuable accomplishments.
3.
Autonomous: The desire to live a self-directed life rather than a dependent life requiring assistance.
4.
Attractive in my own way: The desire to age naturally and gracefully
5.
Alive: The desire to live a vibrant life, where you can do anything.
6.
Admired: The desire to be recognized for one's numerous experiences and to be socially respected and admired
7.
Advanced: The desire to have one's own mature and sophisticated taste
Senior businesses are attracting attention as a new growth engine to address the challenges of a super-aging society, and they are positioning themselves as a crucial opportunity for various companies. In response, many domestic companies are introducing various services for seniors, aiming to dominate the market through innovative technologies and customized solutions.
New business models targeting seniors are emerging, combining traditional industries like fashion and healthcare with new technologies like AI and big data, in care services like nursing and long-term care. Recently, a number of fashion-related services targeting senior women in their 50s and 60s have emerged.
While large corporations offer comprehensive services to a broad customer base, startups appear to differentiate themselves by focusing on specific customer segments through vertical services. They typically offer customized solutions for specific industries or customers, and they are growing rapidly while remaining flexible and responsive to specific needs.
2.
Well-aging/well-dying ecosystem trends
2-1. Well-Aging
Beyond anti-aging, which emphasizes staying young and not aging, social interest in well-aging—aging healthily and happily—is growing. Those in their 50s and 60s, who have the greatest desire for well-aging, are seeking various products and services to age healthily and beautifully. A leading field of well-aging is "gerontechnology." A portmanteau of "gerontology" and "technology," gerontechnology is a technology aimed at solving the social and economic problems caused by an aging population. Gerontechnology encompasses science and technology, integrating medicine, gerontology, psychology, engineering, nursing, sociology, physiology, and demography, creating "science and technology and welfare care." It encompasses all of the senior business markets mentioned above, and recently, innovative products, technologies, and services related to "care," "life safety," and "improving quality of life" have been introduced to the market.
•
Care: Emergency safety and security services, AI speaker-based care, medication reminders, etc.
•
Life Safety: Dementia Prevention Content, Home Stability Devices, Cooking Systems, etc.
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Improving Quality of Life: AI Robots, Psychotherapy Pet Robots, and More
2-2. Well-Dying
Japan, which entered a super-aged society before Korea, boasts a market size of 10 trillion won (approximately $8.5 billion USD) for well-dying services. The Great East Japan Earthquake sparked a deeper reflection on death in Japan, leading to the emergence of various organizations and educational programs related to well-dying. The government also began emphasizing the importance of the well-dying service industry. Since then, the scope has expanded to include inheritance, estate management, life-sustaining treatment, nursing, dementia care, and estate management. Currently, the market can be categorized into four major areas: planning for the remainder of life, pre-death arrangements, funeral and burial preparations, and writing end-of-life notes.
•
Life Planning: Desires for Care and Nursing, Indications for Life-Prolonging Treatment, etc.
•
Living arrangements: Disposing of disaster or personal belongings, disposing of inherited assets, writing a will, handling digital belongings, etc.
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Ending Note: Legally Ineffective Well-Dying Plans, etc.
In Korea, the implementation of the Act on Decisions on End-of-Life Treatment in early 2018 led to a surge in well-dying education and pre-death experiences. Recently, with the advent of new digital technologies, various services related to life planning, pre-death arrangements, and end-of-life notes have been launched. These services have garnered attention for simplifying complex processes like funerals, inheritance, and memorials, while reducing spatial and temporal constraints. However, it's important to note that currently, wills written online in Korea are not legally binding. Civil law stipulates five types of wills: handwritten, recorded, oral, secret, and notarial. Therefore, among well-dying services, will writing services should be considered merely practice for the real thing.
3.
Introduction of major companies
We've compiled services for the three markets within the senior business industry introduced earlier: health, comfort, and lifestyle support. Compared to Korea, overseas markets tend to launch a variety of innovative services more quickly, so we focused our research on unique and differentiated services. The domestic market, with its many similar services, offers a diverse range of services, so we've selected and compiled examples with high growth potential and differentiated initiatives that offer new services.
3-1. Overseas companies
3-1-1. [Health] Rakuten Senior (Japan) - A service supporting the daily health activities of seniors.
楽天シニア｜歩数を測って、健康管理。近くのイベントも探せる「健康生活応援アプリ」
Rakuten is a leading Japanese e-commerce and internet service company, offering services in a wide range of fields. Its main offerings include e-commerce, financial services, mobile communications, and digital content. It also offers a points system to encourage shopping and enhances customer loyalty through various affiliate programs.
Among these, Rakuten Senior Services offers a variety of features that help seniors in Japan lead healthier and more active lives. It is significant in that it positively impacts the lives of seniors by helping them manage their health, maintain social connections, and adapt to the digital environment, while also creating new business opportunities targeting seniors.
•
Target Customers and Needs: Primarily targeting the elderly (60 years and older), who want to lead an active and healthy lifestyle through activities such as daily walking and health programs.
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Service outlets and processes
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Forming healthy lifestyle habits is possible
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Earn Rakuten points based on the number of steps you record, and use those points to purchase products from Rakuten.
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You can watch gymnastic videos tailored to your interests or concerns within the application.
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BM Model and Strategy
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Earn reward points (earn one stamp for every 4,000 steps you walk, earn three points for every seven stamps you collect, and receive stamps and coupons by scanning your QR code at designated check-in facilities)
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Allows you to purchase other services within Rakuten with your accumulated points, thereby inducing natural customer inflow.
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Future expansion plans: Enhance health management capabilities and host offline events to facilitate networking.
3-1-2. [Life Support] Famileo (France) - Private Family Social Network
The family newspaper that brings joy to grandparents
Founded in 2015, French company Famileo provides a private social network service that allows the entire family to share news in a personalized newspaper format. Over the past month, the app has seen 35,911 app downloads and 2,156,220 monthly visitors, a 47.89% month-over-month increase. Monthly visitor growth in the US (1,415.33%) and the UK (187.36%) demonstrates strong demand for the service. Famileo's first investment round in 2019 was confirmed to have been non-equity supported by VentureOut.
•
Target audience and needs: Seniors and their families who want to communicate with their families.
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Service outlets and processes
◦
We provide printed newsletters in a format that seniors can easily access while bridging the digital divide. We also provide an app for family members to share updates with each other.
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Families upload photos and text in the app -> edit in newspaper format -> print and mail to seniors
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BM Model and Strategy
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A subscription model where families pay a regular fee and seniors receive mail.
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Emphasize the emotional aspect of service, easy UX, and low-cost printing strategies.
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Future expansion plans: We are expanding our business to Spain, the UK, the US, and Canada.
3-1-3. [Life Support] Empathy (New York) - Integrated Funeral Services for Bereaved Families
Support for Loss | Empathy
Founded in 2020, Empathy, an American company, provides practical and emotional support to those experiencing the death of a loved one. It reported 22,565 monthly visitors last month, a 70.67% month-over-month increase. The decline was primarily in the United States, which accounts for 82% of total monthly visitors, and Israel, which accounts for 3% of total monthly visitors, saw a 601.15% increase. After receiving $13 million in seed funding in April 2021, the company secured $30 million in a Series A round in September of the same year and an additional $47 million in a Series B round in March 2024.
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Target Audience and Needs: Bereaved families seeking to resolve administrative and emotional issues following the loss of a loved one.
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Service outlets and processes
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Services are provided in two parts: administrative and emotional.
▪
Administrative problem resolution: Provides step-by-step guidance on legal procedures, insurance claims, estate management, and more.
▪
Addressing emotional issues: Providing a variety of services, including psychological counseling (emotional tracking, personal journaling, meditation, etc.)
•
BM Model and Strategy: Provide as part of employee welfare programs or create profits by collaborating with corporate partners such as insurance companies and hospitals.
3-2. Domestic companies
3-2-1. [Health] Sylvia - Dementia Prevention Solution
Founded in 2020, Sylvia Health operates the non-face-to-face cognitive health care platform "Sylvia." As of August 2024, the platform boasted 1,247 monthly visitors and annual revenue of 68,023,000 won as of 2023. Furthermore, the company has reportedly secured over 30,000 middle-aged and older users. Following a Seed round in 2020, the company is currently conducting a Pre-A round in 2023, with the investment amount undisclosed.
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Target audience and needs: Middle-aged and older adults at risk for dementia, with a need to reduce the risk of developing dementia.
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Service outlets and processes
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B2C: AI-based dementia risk assessment and personalized dementia prevention solutions. Non-face-to-face professional video screening services available.
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B2B: Custom logos and UI settings available. Easily view and manage user information through a dashboard. Expert instructors can be dispatched if needed.
•
BM Model and Strategy: Currently, the service is provided free of charge, with paid services (customized solutions, expert dispatch, etc.) offered only to B2B customers. This strategy has been confirmed to involve securing customer data through a mass-market approach and commercializing through B2B partnerships.
•
Future expansion plans
◦
We are enhancing our service, which consists of a 12-week dementia prevention program, and plan to proceed with the process of obtaining certification from the Ministry of Food and Drug Safety.
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We are planning to continue expanding into B2C, B2B, and B2G.
3-2-2. [Comfort] Onu - Active Senior Leisure Curation Service
Founded in 2020, Roche Korea operates "Onyu," a leisure curation platform targeting people in their 50s and 60s. As of 2023, annual sales were estimated at KRW 630 million, and as of September 2024, 70.9% of users were women in their 50s and 60s. Since its Seed round in December 2020, the company has raised a total of six rounds of investment and is currently in the process of a Pre-A round. The total investment is estimated to exceed KRW 200 million, but the specific investment amount remains undisclosed.
•
Target audience and needs: Active seniors who participate in a variety of leisure activities and have a need for networking.
•
Small Businesses and Processes: Providing personalized leisure curation and rich content.
•
BM Model and Strategy
◦
A subscription model that allows you to enjoy various leisure programs for a flat monthly fee, and partnerships through collaboration with various organizations and companies.
◦
We are pursuing a strategy to build a playground for active seniors by differentiating between online and offline operations.
•
Future expansion plans: Plans to expand by providing diverse content based on senior customer data.
3-2-3. [Comfort] Queen It - A Fashion Platform for Middle-Aged Women
Founded in 2020, Rapo Labs operates "Queen It," a fashion platform for women in their 40s and 50s. As of 2023, its annual sales were KRW 41.26 billion, and as of August 2024, its monthly visitors were 1.174 million. Of these, 15.6% were women in their 40s, 53.2% were women in their 50s, and 19.6% were women in their 60s and older. Since its Seed round in December 2020, the company has raised a total of five rounds of investment and is currently in the process of a Series B round. The total investment raised is estimated to exceed KRW 85.5 billion, with KRW 36 billion secured in the Series B round in 2022 and KRW 34 billion secured in the Series B round in 2023.
•
Target Customers and Needs: Middle-aged women with high purchasing power who want high-quality clothing at a reasonable price and a variety of styles.
•
Small business and process
◦
A personalized shopping experience tailored to middle-aged women.
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Collaboration with various brands, intuitive UI/UX, personalized recommendation system, and community features.
•
BM Model and Strategy
◦
B2C-centric, structure that takes commissions through direct transactions between consumers and brands.
◦
With over 1,100 brands, Queenit boasts a uniquely high number of stores in the industry, including brands exclusively available on Queenit. (Exclusive brands account for 25% of total transaction volume.)
•
Future expansion plans
◦
We are internalizing our development organization to enhance machine learning and expand our development capabilities to provide consumers with the products they want immediately when they open the application.
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We plan to expand our categories to focus on products favored by the middle-aged generation, such as travel products and pet products.
3-2-4. [Comfort] The New Gray - Senior Fashion Consulting, Makeover Content Commerce Service
Founded in 2023, The New Gray operates "The New Gray," a senior content and commerce service that supports seniors to proactively lead their lives and maintain a vibrant lifestyle. The company is currently conducting a Seed round of funding, with the specific investment amount undisclosed. 60% of its users are in their 50s and 60s, and The New Gray's influence is evident on social media, with approximately 700,000 followers across Instagram and TikTok combined. Notably, TikTok's cumulative views exceeded 100 million last year.
•
Target audience and needs: Seniors interested in fashion, senior influencers, and creators.
•
Small business and process
◦
Offering stylish yet practical fashion and lifestyle for seniors.
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Commerce (product sales), community (senior communication), content (short-form media & MCN), and senior influencer development.
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BM Model and Strategy
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Corporate advertising campaigns using makeup content
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The New Gray Club Academy: Cultivating Senior Influencers and Creators
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One class per week, three-month course. 600,000 won per month.
◦
Running a senior creator agency
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Establishment of a Japanese corporation to conduct business similar to that in Korea
•
Future expansion plans
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Launching a beauty brand for young, vibrant, active seniors.
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Expanding globally to become a global senior agency handling senior influencers worldwide.
3-2-5. [Comfort] Honored - Travel and Concierge Services for Active Seniors
Founded in 2022, For Parents provides travel and concierge services for seniors. Their flagship services include "For Parents," a care-based travel program for seniors in their 70s and 80s, and "Honored," a program for active seniors in their 50s. Honored, unlike traditional package tours focused on low-cost options, offers travel experiences tailored to the leisure needs of the baby boomer generation. It also promotes member interaction through its membership system. The company secured two rounds of investment in November 2023 and January 2024 and is currently in the process of a Seed round. The specific investment amount is undisclosed. While the exact sales figures are unavailable, they have confirmed a more than 500% year-over-year growth in sales.
•
Target audience and needs: Middle-aged people who have wanted to travel but have not been able to live a full life, and middle-aged people who want to naturally meet new people through travel.
•
Small business and process
◦
Providing a convenient mobile environment and valuable travel content for middle-aged and older people.
◦
Customized travel course & planning, premium vehicle & driver dispatch, accommodation & flight reservations & ticketing, and online travel assistant services.
•
BM Model and Strategy
◦
Prices vary depending on travel components. (Admission fees, accommodations, etc. can be covered at a minimal cost through affiliated companies.)
◦
Honored membership service operation – enabling interaction between members
•
Future expansion plans
◦
We plan to expand into lifestyle healthcare solutions that are easy and convenient for everyday life, based on customer data collected through offline travel.
3-2-6. [Life Support] Samsung Electronics - Family Care Service
Samsung Electronics launched its Family Care service in June 2024, targeting seniors as its primary target. The goal appears to be to secure a customer base, including by identifying hidden consumers. Targeting seniors allows the company to consider not only the elderly but also children living away from their parents. Indeed, Samsung Electronics' strategy of presenting key service use cases from the perspective of children, rather than seniors who use AI appliances, is considered a smart strategy. This is significant as it aims to establish a leading position in the senior care market and contribute to improving the quality of life for seniors and their families.
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Target Customers and Needs: Middle-aged breadwinners caring for elderly parents who need health monitoring and family safety through smart home devices.
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Small business and process
◦
Manage your family's health and safety using AI appliances and location-based services.
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Activity Alerts: Analyze activity patterns and send alerts when abnormalities occur.
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Location-based care: Identifying whether a person has entered or exited a specific location and their location.
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Medication reminders and schedule management: Provide guidance on medication times, etc.
•
BM Model and Strategy: Currently, it is available for free if you own a Samsung Electronics AI home appliance.
•
Future Expansion Plans: We plan to expand the service to more countries and continuously add features.
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