Wedding planners in China, where these events are historically lavish art, felt the effects of COVID first and foremost. However, the industry, estimated to be worth about $500 billion, is being threatened by a drop in the number of couples seeking marriage.
Officials are concerned because marriage and birth rates hit historic lows last year, contributing to the first population decline in 60 years. This trend has been more noticeable as the economy has weakened and consumer confidence has diminished.
"The number of marriages is falling, and few are willing to spend a lot on weddings. The future of this industry doesn't look promising," said Yuan Jialiang, who works in the wedding industry.
Last year, there were just 6.8 million weddings in China, which is 800,000 less than in 2021. It was also the fewest since the government started recording the statistics in 1986.
Current Decline in Marriage Rates
According to Reuters, China is one of the world's fastest-ageing countries, and the reduction in births is likely to be worsened by the current trend of fewer people getting married. Having children outside of marriage is stigmatized, and unwed women in many places are not eligible for child-rearing or healthcare subsidies.
Ben Cavender, managing director and head of strategy at China Market Research Group, claims that some individuals have said marriage is not the right decision for them and that others have said having children is too expensive.
Daxue Consulting predicted before the pandemic struck that by 2020, China's wedding market would be worth $487 billion, or 3.6 trillion yuan.
Meanwhile, Frank Chen of Chen Feng Wedding Planning in Shanghai reports that this year, few weddings had a budget of more than 100,000 yuan ($13,736). This is apparently a significant decrease from the norm of previous years.
Chen said that couples were more likely to spend millions of yuan on their wedding a decade ago. However, they choose simpler, more specialized ceremonies nowadays.
Due to COVID-19 lockdowns, many 2022 marriages had to be rescheduled until 2023, making 2023 busier for various businesses.
The demand for wedding jewelry is expected to increase to pre-pandemic levels this year, according to jewelers Chow Tai Fook and TSL. Yet, according to TSL, the industry's long-term viability will depend on the state of the economy.
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Greater Part of the Market
The middle class and young people have been affected particularly hard by the economic slump, which has led to high unemployment rates and reduced family expenditure.
Jewel Wang, who owns a chain of boutiques that sell wedding gowns by US designer Vera Wang, predicts that businesses that focus on the high-end or provide customized services would do better than those that target the low to middle class. "For us, it makes more sense to find the next bride who can afford our products versus capturing a greater part of the market," she stated.
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