The Growth Outlook and Evolution in China's Adult Goods Sector 

The subject of "sex" has traditionally been viewed as inappropriate for open discussion in China, often being regarded as a taboo. Yet, with the progressive evolution of social attitudes, this topic is no longer off-limits, evolving into a lucrative industry. 

In the year 1993, the first store retailing adult products in China commenced operations in Beijing, thus signaling the inception of the Chinese adult goods industry. Over the subsequent two decades, the sector has expanded significantly, dwarfing its initial size. 

While Male Consumers Dominate, Female Demand is Rising 

Statistics reveal that over 200 million single individuals reside in China, substantially contributing to the "single economy" which encompasses the adult goods sector. Presently, the demand for such products extends beyond singles to include those in relationships. 

An investigative report from a reputable institution indicates that as of 2020, about 68.3% of Chinese males consumed these products, which implies nearly 7 in every 10 men purchase items related to sex. This consumer percentage is particularly high in first and second-tier cities within China. 

Furthermore, an increasing number of women are demonstrating a demand for adult goods. The 2021 China Women's Health White Paper survey data shows approximately 33.3% of women have used sex-related items. An additional 42.6% indicated a willingness to consider future purchases and use of such products. 

The Main Consumers: Post-1985 and Post-1990 Generations 

A study by Analysys revealed that the primary consumers of adult goods in China are those born after 1985 and 1990, irrespective of their sex. In this industry, the saying goes that "those born after the 90s are the primary consumers." Hence, adult goods are gaining popularity among younger demographics. 

What Makes Adult Goods Increasingly Popular? 

Many may question the growing popularity of adult goods purchases. While demand is the fundamental driver, the shift in societal mindset and the advent of secure e-commerce platforms that support these transactions have played a substantial role. 

Internet shopping provides the benefit of anonymity, thus preserving consumer privacy. A recognized consultancy firm noted that as sex-related goods present challenges for offline sales, e-commerce platforms have provided a solution, leading to a significant market share for online adult goods sales. 

Data suggests that around 70% of adult goods sales occur via e-commerce platforms, leaving 30% for offline transactions. However, both sales channels contribute significantly to the sector's development, which has seen swift growth in recent years. 

Emergence of More Companies and Sector Expansion 

Data from QueryChae reveals an estimated 120,000 companies in China related to adult goods. While this might not seem significant, it marks a substantial increase compared to previous years. The year 2020 saw a rise of 537.3% in registered companies alone, totaling 30,000. 

The scenario in 2021 is even more striking. In the first three quarters, the number of registered companies in the adult goods sector reached 33,000, developing an industry chain represented by large sex toy manufacturers such as DINGFOO. It's evident that an increasing number of people are positive about this industry and eager to partake. Consequently, capital investment is also on the rise. 

Over the past decade, there have been 98 funding rounds in the Chinese adult goods industry, with reported funding amounting to RMB 5.34 billion. Perhaps this influx of new companies and capital has propelled the adult goods market into a billion-dollar industry. 

Data from China Research Network shows that the adult goods market in China exceeded RMB 113.44 billion in 2020, signifying a promising future for the industry. 

Analysts at QueryChae suggest that the adult goods market has reached a stage of maturity and high segmentation. The emergence of numerous new sales channels and recent developments have shaped the industry's current state. They believe, "The 'spring' of sex-related goods might not be here yet, but the market is in full bloom as change sweeps across."