Economy

China's economy for kids to double within 5 years: report

(Xinhua)
Updated: 2011-03-26 14:01

BEIJING - The market for children's products in China will double within the next five years, a report released at a kids expo in east China's Zhejiang province has estimated.

The market demand in China for children's products exceeded 1 trillion yuan ($152 billion) in 2010 and that figure is expected to hit 2 trillion yuan by 2015, according to the report.

The report attributes the fast growth of the sector to the country's large population, robust consumption and increased attention to child health and eduction in recent years.

It is estimated that China has a population of about 200 million children under the age of 12, the report said.

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A Chinese family will spend an average of 5,000 yuan ($758) per child each year, according to a survey by the Hangzhou Association of Industries on Children. This money goes to a variety of companies providing child-oriented products and services such as baby formula, clothing, toys, education and entertainment.

According to a report by the China E-commerce Research Center, online purchases of baby formula from overseas companies reached 2.4 billion yuan in 2010, ranking second only to cosmetics.

Education is another area that has attracted domestic and overseas investors. Twelve Chinese educational institutions have won financial support from overseas venture capitalists, with investments totaling $100 million so far.