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Taiwan’s eldercare industry benefits from demographic change
2021-01-29

Taiwan’s rapidly aging society is spurring development of the country’s eldercare industry. (Photo/Jimmy Lin)

Taiwan’s rapidly aging society is spurring development of the country’s eldercare industry. (Photo/Jimmy Lin)
 

As Taiwan rapidly heads toward becoming a super-aged society—meaning one in five citizens is aged 65 or older—businesses have quickly begun to provide goods and services geared toward the elderly, as demonstrated by the growing popularity of the Assistive Technology for Life exhibition. Held annually in Taipei City, the event features an array of inventive devices designed to improve quality of life for older adults.

“While previous generations tended to funnel all savings to their children, today’s retirees are more inclined to think about their own well-being and spend more on themselves,” said Chang Tsz-yin, director of the Lifestyle and Biomedical Research Division of the Industry, Science and Technology International Strategy Center under state-backed Industrial Technology Research Institute based in northern Taiwan.

This change in mentality, coupled with an aging population, has propelled the country’s eldercare industry. According to ITRI, goods and services designed for the elderly generated NT$199.4 billion (US$6.88 billion) in revenue in 2019, up 22.7 percent from 2017, with the number likely to reach NT$236.7 billion by 2022.Retail outlets catering to the needs of the elderly are increasingly popular in Taiwan.

ITRI plays a critical role in driving the senior citizen-oriented economy in Taiwan by introducing the know-how of countries with developed eldercare markets like Japan. “The local sector didn’t take off until recently because the needs of senior citizens weren’t properly prioritized,” Chang said.

Various centers of ITRI are continuing to develop products for long-term care with potential for commercialization. Notable results include ultrathin, ultralight wearables for detecting vital signs and equipment analyzing changes in gaits for developing more effective exercise regimens.

Also getting in on the eldercare trend is Taipei-based Chunghwa Senior Care Co. Formerly a franchisee of a U.S. firm providing basic assistance such as meal preparation, CSCC started offering specialized care for clients with cancer, dementia and history of stroke in 2016.

To ensure the best possible results, CSCC professionals first make comprehensive assessments of clients’ conditions and design care plans tailored to each individual’s needs. To date the firm’s customized services have helped more than 100,000 people. Its steadily rising revenue demonstrates the growing need for such offerings, with 50 percent year-on-year growth in 2019.

In August last year, ITRI launched the International Consortium of Smart Elder Care, which currently comprises 20 members in areas spanning health care, optoelectronic solutions and artificial intelligence. In addition to serving the home market, the consortium is boosting development of products and services for the elderly in South and Southeast Asian countries.

“It’s high time for all sectors in Taiwan to take a major step forward by integrating resources and creating innovative care strategies for the demographic,” CSCC Vice President Trista Chen said. “As the population is rapidly aging and senior citizens are keen to invest in their well-being and quality of life, the industry must be ready to meet their needs.” (SFC-E) (By Oscar Chung)

(This article is adapted from “Graying Economy” in the November/December 2020 issue of Taiwan Review. The Taiwan Review archives dating to 1951 are available online.)