Chinese boating grows and faces new challenges

The Chinese yacht market is aiming for growth and facing new challenges. According to research conducted by MRI Team, by 2031 this sector will expand significantly. It will be influenced by technological advances and changes in consumer preferences that will fuel innovation and drive demand. A more favourable regulatory environment and increased awareness of yachting will further contribute to yacht industry growth.

Coastline and population

Geographically, China can offer many sailing opportunities. China’s coastline stretches 18,000 km and is mainly located in the East and South-East of the country, an area that can also rely on natural resources such as inland rivers, lakes and other waterways. Moreover, the most developed provincial economies, including those related to the areas of Jiangsu, Shandong, Zhejiang and Fujian, are located in the coastal area.

The growth in demand for yachts in China, however, is linked to the increasing urban population. In cities, the demand for pleasure boats is stronger. With a large number of potential consumers, the Chinese yacht market is considered attractive for foreign companies. In recent decades, the number of manufacturers, yacht sales agents, customers, private clubs and trade fairs has increased. The Chinese yacht industry will reach USD 15.1 billion by 2027, representing 17.8% of the world market and growing at a CAGR of 3.9% between 2020 and 2027.

Acquisitions and digital revolution

The digital revolution taking place across all sectors is fuelling demand for yacht solutions that integrate with digital platforms designed to improve efficiency.

Since the Covid phase, the demand for solutions to facilitate collaboration, communication and remote access to specific functions has also increased.

The luxury yacht China segment is witnessing a wave of mergers and acquisitions, as companies seek to consolidate their market positions, expand their product portfolios and exploit synergies to drive growth and competitiveness.

Acquisitions give companies access to new technology, intellectual property and talent, making it easier to innovate and anticipate trends. They also allow companies to enter new markets and strengthen their presence in existing ones, increasing revenues and positioning themselves for long-term success in the luxury yacht China market.

Superyachts: an interesting sector

As of 2021, experts believe that a segment that may become increasingly strategic for the Chinese yacht market is the superyachts China segment. This is also due to the increase in the high-income population. The Wealth Report had identified China as one of the 10 countries with the largest increase in income (+16%).

There is, however, a difference between the Hong Kong and Mainland Chinese markets: while the Hong Kong market is a very mature and culturally established nautical market, where no further growth potential is expected, sales of superyachts in China are set to rise further.

According to experts, the Chinese tend to buy new superyachts China from dealers who specialise in selling standard yachts; increasingly, however, there are Chinese who buy semi-custom or full-custom superyachts through yacht brokers. Standard yacht dealers are, however, also beginning to turn to the sale of larger semi-custom superyachts to meet this additional market need.

In both Hong Kong and Mainland China, buyers’ habits differ according to the size of what they buy and the intended use, domestic or foreign-oriented. Most marinas in Hong Kong offer berths up to 35 m; as a result, both the new-build and brokerage markets in Hong Kong are very active, with most customers keeping their boats in Hong Kong and using them for local cruises.

Larger boats are generally moored and used abroad, where the mooring restrictions of Hong Kong marinas do not exist.

Hong Kong customers usually prefer to buy new boats (about 60-70%). In Mainland China, government restrictions on the import of second-hand yachts older than a year, as well as the lack of brokerage agencies and professionals who can advise customers on what is best to buy in the second-hand boat sector, mean that there is no second-hand boat brokerage business in China, even in the 30-35 metre sector. Although mooring is easier for these boats and this feature might attract more users, preferences are moving in the direction of new boats.

Growing local boating

There is optimism in relation to the evolution of the Chinese yacht market, but there remains a problem to be solved, which concerns the lack of local professionals. Often in every sector related to the nautical industry, from design to brokerage, it is difficult to find high-level Chinese professionals. It is therefore important to develop talented Chinese people.

Shipyards also need to be able to make marketing material available in Chinese, because most Chinese customers feel more comfortable reading in their own language instead of English.
Furthermore, it will be crucial to grow on the infrastructure side and on the nautical training of crews. When there are more Chinese marinas and professional crews, the popularity of superyachts China will also increase.

The Chinese government is promoting nautical tourism, especially in the Hainan Island Free Trade Zone and the Greater Bay Area. This strong focus on nautical tourism China will support long-term market expansion and reinforce the attractiveness of the entire Chinese yacht market.

CHINA – STATS & FACTS

ECONOMIC INDICATORS 

GDP growth (2023)

• +5,2%
• (source: World Bank group)

GDP growth (July 2024)

• +4% on the same period in 2023
•  (source: China Briefing)

GDP growth per capita (2022)

• 0,81%
• (source: Macrotrends)

High Net Worth Individuals (2022)

• 5.547.086 individuals in China have between $1 million and $5 million USD. 
• 424.000 individuals in China have between $5 million and $10 million USD. 
• 226.883 individuals in China have between $10 and $50 million USD.
• 20.257 individuals in China have between $50 and $100 million USD.
• 11.134 individuals in China have between $100 and $500 million USD.
• 1.268 individuals in China have above $500 million USD.  

(sourcee: Statista)

China retail spending (July 2024)

• +2.9% compared to July 2023
• (source: China Briefing)

Consumer Confidence (July 2024)

• 86.2 index points
• (source: Statista) 

New car sales (August 2024)

• -5% compared to August 2023 
• (source: China Association of Automobile Manufacturers – CAAM)

Forecasts

• The Chinese yacht industry will reach USD 15.1 billion by 2027, representing 17.8% of the world market and growing at a CAGR of 3.9% between 2020 and 2027.
• (source: 2021 Wealth Report)

Companies valued by the Chinese luxury yacht market

• Gruppo Azimut Benetti 
• Gruppo Ferretti 
• Princess Yachts International PLC
• Sunseeker International Limited 
• Sanlorenzo S.p.A.
• Feadship
• Lürssen
• Heesen Yachts
• Oceanco
• Amels B.V.

(source: MRI Team)