Population changes drive new consumption opportunities

        With the aging population, declining birth rates, changes in family structure, and increasing number of new immigrants in Taiwan, the consumer market is quietly flipping, weaving together a new form of consumption landscape. Traditional market thinking is no longer applicable, and companies must rethink how to respond to emerging demands in order to stand out in the fiercely competitive red ocean. This article analyzes the consumption changes under the transformation of Taiwan's social structure, in order to assist group enterprises in grasping market trends and pulse.

        According to statistics from the Ministry of the Interior and the Directorate General of Budget, Accounting and Statistics, Taiwan will enter a super elderly society this year, meaning that the population aged 65 and above will reach 20% of the total population, and it will continue to rise in the future. At the same time, the phenomenon of declining birth rates is intensifying, with only about 135000 newborns in 2024, setting a new historical low and further accelerating the transformation of family structure. These demographic changes not only affect people's values of life, but also reshape market supply and demand, giving rise to diversified emerging consumption trends. Personalization, experience first, and quality oriented are gradually replacing traditional mass consumption. Brands and enterprises must redefine consumers and grasp changes in market demand in order to find new growth momentum in a fiercely competitive environment.

        New momentum of mature consumption

        The epidemic has changed the values of the 60+mature age group, allowing them to enjoy life more and actively create their own value. Their stable economic source and rich life experience have become an undeniable consumer force.

        From high-quality medical and healthcare products to tourism, leisure, and social entertainment, the mature age market is no longer limited to elderly care products, but pursues a 'quality second life'. Customized tourism, high-quality health checkups, intelligent companion robots, and more for mature age groups all contain huge business opportunities.

        Exquisite and expensive parenting

        The problem of declining birth rates has become the most severe issue in Taiwanese society. Although the number of newborns has hit a new low, the mentality of caring for children has made parents willing to invest more resources and expenses to create a refined parenting life. According to a survey by Mom Baby Magazine, 31% of parents are willing to invest a high budget in baby seats, strollers, and baby beds; High priced infant formula sales grew by 23.6% (Nielson), while high priced diapers and baby food also drove category growth. South Korean department stores with severe low birth rates have even launched the "Very Important Baby" service. These high-end baby products and services reflect the demand of the parent-child market for high-quality activities that combine education with entertainment.

        New immigrants and migrant workers drive emerging consumer forces

        With the growth of the population of new immigrants (600000) and foreign migrant workers (820000), not only has it injected multiculturalism into Taiwanese society, but it has also become a driving force in the consumer market. Their leisure and social needs have given rise to new services such as exotic cuisine, currency exchange, cross-border shopping, and language learning. In addition, migrant workers in their 20s and 30s are more willing to invest in themselves, which has also given rise to the medical beauty business opportunity of "technology for facial recognition". Understanding and meeting the needs of these emerging groups will be the key to opening new doors to the market for businesses.

        The rise of single person consumption for solo travel and dining

        According to data from the Ministry of the Interior, over 3.32 million people in Taiwan live alone, accounting for about 14.2% of the total population, with unmarried individuals aged 25-44 accounting for as much as 51%. These people not only choose to eat, travel, and entertain alone, but also drive a consumption wave of "living for oneself". According to a survey conducted by Oriental Online, 69% of the overall population in Taiwan have shopped alone, 47% have dined alone, and even 20% have traveled alone, demonstrating the astonishing size of Taiwan's "one person market".

        The most important thing is liking, and it's worth it even if it's a little more expensive. This group of consumers are willing to pay a higher price to get the product experience they want. Therefore, catering, leisure, and tourism operators have launched personalized and high-quality services, such as high-end single seat restaurants and customized travel itineraries, which have quickly gained market favor.

        Hairy children become family pets, business opportunities are booming

                Against the backdrop of declining birth rates, small families, and an increasing number of people living alone, pets have gradually become a source of emotional support for many people. The number of newly registered furry children in Taiwan each year (230000) has significantly exceeded the number of newborns, and the business opportunities in the pet market are estimated to reach NTD 60 billion annually, with continuous growth. Owners' care for their furry children not only focuses on basic needs, but also covers high-end food, pet medical care, exquisite beauty, smart wearable devices and other fields. Some even launch pet insurance and emergency reserve fund mutual assistance platforms.

        Healing economic explosion brings emotional value

        When 'pressure mountain' becomes a common language among modern people, healing products become emotional outlets for consumers. According to a survey by "Vision" magazine, 57% of Taiwanese people consider themselves to be under too much pressure, and 82% are willing to spend money to relieve stress. From plush toys to anime figurines, "healing gadgets" continue to rise after the epidemic, reflecting the strong momentum of the healing economy.

        In recent years, POP MART, GIIKAWA, and the British brand Jellycat have sparked a global collection craze, even leading to queues and panic buying. It is evident that these healing items are not just decorations, but also emotional companions for people. They play a soothing role in the daily life of living alone and under heavy pressure, forming an undeniable business opportunity.

        The era of small houses has given rise to multifunctional commodities through spatial economy

        The soaring housing prices, coupled with factors such as small families, low birth rates, and single population, have led to the trend of "small houses" becoming a residential trend. Compared to 2019, the transaction volume of medieval houses below 25 ping will increase by 48% in 2024. Faced with limited space, consumers seek "small yet beautiful" and "small yet comprehensive" living solutions, which drive the hot sales of multifunctional furniture, appliances, and storage products, such as folding tables, sofa beds, steaming and baking microwave ovens, and other small volume, multifunctional products, helping consumers "simplify". In addition, renting storage space and professional reorganization services have also become popular options, demonstrating the market demand for space optimization.

        Market restructuring welcomes a new era of consumption

        The dramatic changes in social structure not only affect population composition, but also rewrite consumer behavior and values. The consumer market in Taiwan is at a critical turning point, with each change reshaping consumer demand and bringing new challenges and opportunities for businesses, from the rise of the single person population, the one person economy, pet business opportunities, to the elderly society driving silver hair consumption power, the trend of refined parenting driven by low birth rates, and the spatial economy giving rise to small house business opportunities.

        The future consumer market is no longer just about meeting needs, but an arena for emotional value and personal experience. In order to more accurately grasp market trends, the Group's Integrated Efficiency and Retail Planning Headquarters integrates internal and external data, constructs a global observation radar, continuously monitors domestic and international retail trends and consumer behavior, and collaborates with affiliated enterprises to formulate business strategies and core positioning. Only by embracing changes and forward-looking deployment can enterprises seize the opportunity in the evolution of consumption and create long-term competitive advantages.

        *Image source: freepik

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