The declining marriage rate in China is hurting the $500 billion wedding industry. This trend threatens industry fundamentals. Weddings’ rapid drop has shaken the sector, making financial stability and long-term planning difficult for enterprises.
Marriage Rates have Plummeted in Recent Decades
China’s wedding total dropped 800,000 from the previous year to 6.8 million. Marriage is seen negatively by society, since this figure is the lowest since the government began tracking it in 1986.
And then, Shanghai wedding planner Yuan Jialiang cautions, “The number of marriages is declining, and there are only a few people who are willing to spend a lot of money on weddings.” His words were heard across the industry, decreasing sales expectations.
Economic Uncertainty and Consumer Confidence Decline
The declining marriage rate is due to economic uncertainty and poor consumer confidence. Faced with high wedding expenditures and family expenses, many young Chinese are reconsidering their conventional marriage vows.
Ben Cavender, Managing Director and Head of Strategy at China Market Research Group, said “many consumers are just saying ‘well, marriage isn’t for me.'” Chinese “many young adults feel that raising a child is too expensive.” And then, this mentality shift has generated concerns about the long-term survival of the conventional Chinese wedding industry.
A Changing Market of Wedding Industry Now
The Chinese wedding business is expected to be valued 3.6 trillion yuan (US$500 billion) by 2020, up considerably from before the pandemic, according to Daxue Consulting. Daxue Consulting values it at 3.6 trillion yuan in 2020. The newlyweds spent money on gold jewellery, ornate centrepieces, and fancy restaurants. However, this once-extravagant landscape is changing.
Frank Chen of Shanghai’s Chen Feng Wedding Planning says couples are choosing smaller weddings. Chen says “people are more likely to choose simple weddings.” Several million dollars was typical for weddings a decade ago. However, few expensive weddings exceeding 100,000 yuan ($15,000 USD) recorded this year.
The deferral of 2022 weddings has helped some enterprises in 2023, but the wedding industry is still struggling.
Repercussions Across Wedding Industry
Declining marriage rates have hurt nearby tourism and hotel firms. Overall, the economy has suffered. The China Tourism Association regrets the industry-wide impact of the sharp decline in wedding travellers.
The spokeswoman complains “We are witnessing a decline in the number of tourists arriving in China for wedding industry.” Marriages are falling. This tendency hurts our industry especially.
Future Prediction is Risky
Falling marriage rates create complex, multifaceted issues with no simple solutions. The Chinese Wedding Industry is struggling and on the brink of collapse. Many wonder what will become of a once-passionate and promising business as its participants navigate these stormy seas.