Postpartum Care Centers: The "Oriental Mystical Power" in Postpartum Recovery

1. Key Drivers for Consumers Choosing Postpartum Care Centers

Professionalism: Scientific Parenting

The pursuit of scientific parenting among the new generation of parents has driven the evolution of demand. The professional services provided by postpartum care centers, such as regular visits by obstetricians and newborn development programs, precisely meet this demand. Postpartum care centers offer 24-hour, uninterrupted, standardized services delivered by a matrix of multi-professional personnel in specialized facilities. Although prices are higher, the range of services provided is broader. In contrast, confinement nannies mainly offer in-home services, and their professionalism and service scope are limited by their personal experience.

Figure: Comparison between Postpartum Care Centers and Confinement Nannies

Convenience: Relieving Caregiving Pressure

The one-child policy was implemented in China for nearly 35 years, and the current mainstream family structure has evolved into the "4-2-1" model (4 grandparents, 2 parents, and 1 child). In 2023, the average household size was 2.8 people, and in 2024, the child/elderly dependency ratio in China were 23.0%/22.8% respectively (data from National Bureau of Statistics). Compounded by the trends of delayed childbearing and aging population, the caregiving capacity of older generations may be further weakened. This has reduced the feasibility of the traditional family-based postpartum care model, leading to increased family reliance on external, professional care.

High Quality: Beyond Basic Care

The increase in disposable income of urban residents has driven upgrades in service consumption. The median customer price of postpartum care center services has increased from 38,000 yuan in 2018 to 52,000 yuan in 2023, with high-end packages (over 80,000 yuan) accounting for 18.7% of consumption. Beyond basic care, the growing demand for value-added services such as postpartum yoga, traditional Chinese medicine treatments, and psychological counseling has turned postpartum care centers into "comprehensive postpartum recovery hubs".

2. Penetration Rate: Significant Regional Differentiation, Untapped Potential in Lower-tier Markets

According to Frost & Sullivan, in 2024, the penetration rate of postpartum care centers in Mainland China was 6%, an increase of 4.7 percentage points compared with 2019. This is significantly lower than that of South Korea and Taiwan, China (both over 60%), indicating considerable potential for growth.

In terms of structure, the penetration rate of postpartum care centers exhibits a distinct gradient distribution, which is directly correlated with the level of economic development and consumption patterns:

Tier 1 Cities: The market is relatively mature, with penetration rates in core cities like Shanghai, Beijing, and Shenzhen reaching 15%-18.5%. Some high-end facilities generate annual revenue exceeding 25 million yuan per center. However, the market has entered a refined operation stage, with the service radius of an individual center compressed to 3 kilometers, necessitating improved efficiency through value-added services.

New first-tier and second-tier cities: These markets are in a period of rapid growth, with cities like Chengdu and Hangzhou showing average annual penetration rate increases of 3-4 percentage points. It is expected that the penetration rate in Chengdu will reach 11.6% in 2025, making it a main driver of industry growth. In 2023, new first-tier cities accounted for 41% of new center openings.

Lower-tier markets: Third- and fourth-tier cities and county-level markets have penetration rates below 12%, indicating significant growth potential. In 2023, the year-on-year growth of new centers in county-level markets increased by 67%. It is expected that the penetration rate in those cities will rise to 18.5% by 2030.

3. Market Size and Competitive Landscape: Expanding Scale, but Fragmented Structure

Figure: Market Size of Postpartum Care and Recovery Industry in China by Revenue (By Service Provider), in billion CN Yuan, source: Saint Bella Inc. Prospectus

Figure：Global Market Size of Postpartum Care Center Industry by Revenue (in Billion US Dollars), source: Saint Bella Inc. Prospectus

According to Frost & Sullivan's forecast, the global market size of postpartum care centers was approximately US$12.9 billion in 2024 and is expected to reach US$31.9 billion by 2030, with a compound annual growth rate (CAGR) of about 16.8%. In 2024, the market size of postpartum care centers in Mainland China was 29.6 billion yuan, and it is expected to reach 107.7 billion yuan by 2030, with a CAGR of 25% (higher than the global CAGR). However, the competitive landscape remains highly fragmented. By the end of 2024, there were approximately 6,300 postpartum care centers in China, with a CR5 (concentration ratio of the top 5 enterprises) of only about 3.7%. What are the reasons for this phenomenon?

From a supply-side perspective, postpartum care centers do not fall into the category of rigorous medical services. A unified national service standard and qualification certification system have not yet been fully established, and such industry characteristics determine that the entry threshold is relatively low: 1) Low capital investment and a relatively lenient market access mechanism: Under the asset-light model, postpartum care centers sign flexible lease contracts with hotels, resulting in low room renovation costs and rapid expansion; 2) Expansion is difficult across regions due to the limitations of the consumption radius. Local postpartum care centers can gain advantages through deep customer relationships, referrals, and local marketing strategies. Therefore, the industry is difficult to be fully monopolized by a few leading enterprises, allowing the existence of regional leaders.

In the long run, the growth rate of the number of newborns in Mainland China is slowing. However, we can perhaps expect the market share of leading companies to increase, mainly for the following reasons:

A) Refinement of local supervision: For example, some cities require postpartum care centers to be staffed with certified medical and nursing personnel and establish emergency channels with hospitals. Small and micro institutions, limited by financial strength, find it difficult to meet such requirements and are forced to withdraw from the market or be acquired by chain brands.

B) High barriers to sustainable operation: As a low-frequency and high-priced service, postpartum care centers involve high opportunity costs, prompting consumers to make more cautious decisions. Consumers highly rely on recommendations from acquaintances, making the trust threshold for these services higher than that in typical consumption scenarios. In addition, fixed costs such as labor, rent, and marketing drive up operating expenses, while the accumulation of reputation and long decision-making cycles further extend the breakeven period. As a result, small and medium-sized enterprises, facing financial pressure, will exit the market.

C) Capital mergers and acquisitions: Since 2021, major players such as Hillhouse Capital, Tencent, and ByteDance have actively entered the market, propelling the industry into a phase of mergers and acquisitions. Hillhouse Capital invested HK$225 million in Aidigong, Tencent invested in St. Bella, and ByteDance entered the maternal and infant sector by holding shares in Meizhongyihe. With capital support, leading brands accelerate the acquisition of high-quality regional institutions. For example, in 2022 and 2023, St. Bella acquired 3 and 1 postpartum care centers respectively, expanding into four new cities (Nanjing, Taiyuan, Haikou and Ningbo) and increasing market share in two existing cities (Shenzhen, Suzhou) through mergers with local competitors.

Conclusion

Against the backdrop of declining birth rates, the demand for postpartum care centers shows structural growth, primarily driven by consumers' pursuit of "professionalism, convenience, and high quality". Currently, the national penetration rate is 6%, indicating significant growth potential. The industry size was approximately 29.6 billion yuan in 2024 and is expected to reach 107.7 billion yuan by 2030 (with a CAGR of about 25%). The competitive landscape is highly fragmented (with a CR5 of about 3.7%). A standardized and sustainable internal operation model, along with external mergers and acquisitions, will be the key factors determining the success of industry consolidation.