The market size of the adult products industry has reached 113.4 billion yuan

In the past, many people would turn their noses up at the mention of "adult products". After all, Chinese people were more conservative in the past and would not purchase or use such "dirty" things as adult products. However, nowadays, with the open-mindedness of young people and the improvement of economic levels, the "adult products" industry has gradually been accepted and become a "legitimate" industry.

China is the world's largest producer of adult products, accounting for approximately 60%-80% of the total market. According to data released by China Research Network on May 4, 2021, the market size of China's adult product industry grew from 682.2 billion yuan in 2018 to 1134.4 billion yuan in 2020. The total industry profit increased from 274.2 billion yuan in 2018 to 511.9 billion yuan in 2020.

It can be seen that the development of China's adult product industry is thriving, achieving remarkable results in both production and profitability, which is impressive.

Is the adult product industry becoming a "hot spot"?

It must be said that, based on the aforementioned data, China's adult product industry holds tremendous development prospects. Some experts even predict that in 2021, the industry will usher in an "explosion period". This suggests that the adult product industry may become a "hot spot" for entrepreneurship.

Of course, although the adult product industry in China started relatively late, in reality, many enterprises have already entered the market. According to the data from Tianyancha Professional Edition, as of August 17th last year, there were over 78,000 enterprises related to adult products in China.

Among them, over 90% are concentrated in the wholesale and retail industry. It is worth mentioning that two well-known companies, Ali Health and JD Health, have long been a part of the adult products industry. Furthermore, JD Health has also made a substantial profit by selling adult products.

As of May 20, 2021, the market capitalization of JD Health had reached HKD 351.873 billion. According to its prospectus data, in 2019, JD Health's total revenue was RMB 10.8 billion, with 70% of the revenue coming from "non-pharmaceutical products". Most of the so-called "non-pharmaceutical products" are adult products. Therefore, many people joke that JD Health's hundred-billion-yuan market capitalization is all supported by "adult products".