The wedding industry in China, valued at nearly $500 billion, has been hit hard not only by the challenges posed by the COVID-19 pandemic but now faces an even greater obstacle: a significant decline in the number of couples choosing to get married.
This alarming trend has become more evident as the Chinese economy weakens and consumer confidence dwindles. It has also raised concerns among officials who are striving to boost marriage and birth rates. These rates reached record lows last year, leading to the first population decline in six decades.
Yuan Jialiang, who operated a thriving wedding planning business in Shanghai for nearly a decade before shifting his focus to wedding photography prior to the pandemic, expressed his concerns, stating, “The number of marriages is falling, and fewer couples are willing to invest heavily in weddings. The future of this industry doesn’t appear promising.”
In 2022, there were 6.8 million marriages registered across China, which is 800,000 fewer than in 2021, marking the lowest number since the government started publishing this data in 1986. This decline in marriage registrations is expected to exacerbate the birthrate decline in China, which is currently one of the world’s fastest-aging societies. Many cities deny unmarried mothers child-raising and healthcare subsidies, and having children out of wedlock is often socially stigmatized.
Ben Cavender, Managing Director and Head of Strategy at China Market Research Group, explained, “You have a lot of consumers that are just saying ‘well, you know, marriage isn’t the right thing for me,’ and a lot of younger adults in China feel that raising kids is just too expensive. The traditional Chinese wedding industry is probably in for tough times.”
Budget Constraints and Backlogs
Prior to the pandemic, weddings were a booming business in China, with Daxue Consulting estimating the industry’s worth at 3.6 trillion yuan ($487 billion) in 2020. Traditionally, couples would splurge on gold jewelry, lavish decorations, and luxurious venues. However, Frank Chen of Chen Feng Wedding Planning in Shanghai noted that few weddings this year had budgets exceeding 100,000 yuan ($13,736).
Chen added, “People are more inclined to go for a simple and niche wedding,” highlighting that a decade ago, it was common for couples to spend millions of yuan. Many weddings originally planned for 2022 were postponed due to COVID-19 lockdowns, resulting in a busier year in 2023 for some wedding firms.
Jewelry companies such as Chow Tai Fook and TSL anticipate that demand for wedding jewelry will return to pre-pandemic levels this year. However, TSL emphasized that the industry’s long-term prospects depend on the strength of the economy.
Xueyi, a wedding planner whose business operates in Xi’an and Shanghai, observed, “It’s just the COVID backlog. Some of my clients who had bookings rescheduled have actually separated.”
Navigating the Economic Downturn
The economic downturn has hit the middle class and youth particularly hard, leading to high unemployment rates and reduced household spending. Wealthier consumers seem better insulated against these macroeconomic challenges.
Jewel Wang, the owner of a network of stores selling wedding dresses by U.S. designer Vera Wang, believes that companies specializing in high-end or bespoke services will fare better than those catering to the low-to-mid-range market. She reported that June was the best month in a decade for her business due to pent-up demand.
Wang stated, “For us, it makes more sense to find the next bride who can afford our products versus capturing a greater part of the market.” Nevertheless, she remains cautious about the future, remarking, “As a market, we see an absolute downturn in spending. Our strategy has been to stay niche, niche, niche. We don’t want to flow with the broader market because we don’t think that it’s a good place to go.
