In China, as the number of “single-member households” continues to rise, so does the demand for consumer goods tailored to a lifestyle of solitude.
Data shows that 57.69% of young adults living alone turn to consumption as a way to alleviate feelings of loneliness. Among them, 41.57% report spending 1,000 and 3,000 yuan each month on products and experiences that cater their solitary lifestyles.
In 2021, data revealed that China was home to a staggering 95 million “empty-nest youth” (referring to young individuals who live independently from their parents and relatives, are single, and rent their own accommodation). A survey of 1,652 people aged 18 to 35 found that 54.6% of these young adults favored the lifestyle of living alone.
The top three reasons for choosing solitary living were: “desiring personal privacy space, a sense of freedom and relaxation,” “having a distinct daily routine from others and avoiding external influences,” and “finding single living highly convenient.”
Source：《“空巢青年”心态特点与生存发展状况调查报告》
The Driving Force Behind the Flourishing Loneliness Economy
Loneliness may be free, but relieving it often comes at a cost. In 2020, a viral topic on Weibo, “College Students Earn 20,000 Yuan by Chatting at Home for Ten Day”, captured widespread attention.
Similar to the “Single Economy,” the “Loneliness Economy” revolves around the concept of individual consumption. However, unlike the “Single Economy”, its consumers are not limited to young singles; it also includes those who actively seek solitude, such as childless households or long-distance couples.
As people’s needs diversify, the Loneliness Economy continues to thrive. New services catering to solitary living like “solo dining,” “solo bars,” “single-person insurance,” “mini KTV booths,” and group tours for solo travelers, are emerging at rapid pace. Today, loneliness is no longer just an emotion, it has become a lucrative business opportunity.
Prospects of the Loneliness Economy
As consumption evolves, single dwellers are increasingly finding ways to streamline and simplify their daily lives, from dining and living to transportation, shopping and leisure. Many of their needs can now be met from the comforts of their own homes, further fueling the diversification of consumption.
Data reveals clear differences in the consumption habits of singles versus non-singles. Non-single individuals, focused on caring for parters or families, typically allocate more spending to essentials like household goods and dining. In contrast, singles, driven by a desire for self-expression and personal enjoyment, are more likely to invest in non-essential or entertainment-related categories.
Many businesses have capitalized on the growing trend of “empty nest youth,” who prioritize self-focus and instant gratification. Products like single-serving meals and convenience items, marketed under the theme of “loneliness,” aim to resonate with this demographic
As the “Single Economy” continues to thrive, a new concept, the “Companionship Economy”, has also gained momentum. Pets have become more than just animals; they serve as emotional anchors and the primary source of companionship for many in the “empty nest youth” group.”
In the face of the rise of the Loneliness Economy, businesses should look beyond profit potential. They must strive to become empathetic partners to consumers, designing and producing products that genuinely cater to the perspective of single individuals, while crafting personalized service models. Only then can they differentiate themselves and succeed in the competitive landscape of the Loneliness Economy.
