Mental health market is evolving, potentially big
According to VBData, an online data analysis platform specializing in the healthcare sector, China’s mental health sector saw 84 financing deals since 2020 with over 10 rounds marking the first half of 2023. In the past three years, over 50 startups in the sector received investment. I am not at all surprised.
Let me explain why. I have to rewind to 2022 first and start there.
As I stared, transfixed, at a livestream of someone trimming a donkey’s hooves for two hours, I suspected I may not be in my best possible mental state. I mean, who would watch such stuff for two hours? As I realized later on, there are many who care for such content.
Anyway, let me continue my story. Fresh off maternity leave, the abrupt hormonal changes had left me grappling with postpartum blues. What compounded my woes around that time was the demise of my dear grandpa who basically raised me. The mourning period exacerbated my sense of loss and the attendant pain. I’d find myself in tears every day. Although the tears subsided later on, so did my ability to find joy.
A serendipitous discovery on a social media platform led me to an unlikely source of comfort — livestreams showcasing the traditional craft of donkey hoof trimming, an unexpected yet effective form of content that can bust stress.
Donkey hoof trimming is an ageold practice that focuses on aligning the donkey’s hooves and legs to guarantee optimal traction. Overlooking this task can lead to elongated hoof shells, causing loss of strength in legs, discomfort and hoof deformities, underscoring the crucial need for regular trimming.
From there, my fascination snowballed into watching videos of old carpet cleaning and soap cutting. My husband said my newfound interest was odd, but I wasn’t the only one who found such videos relaxing.
On Douyin (the Chinese version of TikTok), videos with the hashtag #donkeyhooftrimming garnered nearly a billion views. You read it right. A billion views, no less.
Livestreams related to this trend exploded in popularity, with viewers generously tipping thousands of yuan in virtual gifts to the hosts, creating a competitive leaderboard based on the gift count.
Yet my husband was still concerned and suggested I seek professional help, maybe go see a psychologist. So, I tried to make appointments at nearby hospitals for two consecutive weeks. But the attempts proved frustrating, as slots were almost always fully booked.
The daily ritual of nervously refreshing my phone at 4 pm to secure newly released appointments only intensified my stress.
I turned to mobile apps that deal with mental health issues: Yixinli, Jiandan Xinli and Eclipse. I found myself in a realm where tech giants, insurance companies and psychology PhDs-turned-entrepreneurs held sway. Yet, despite these illustrious backers, the screen-mediated communication felt suboptimal.
Dark moods may bedevil many a mind, but investors seem to have a distinct perspective of the situation.
Zhao Hao, head of Golden Crown International Cultural Development, a counseling and training company that specializes in psychological profiling and parenting techniques, said China’s mental health market expanded rapidly in recent years, but there remains a considerable gap compared to more mature markets.
Between 2021 and 2022, US venture capitalists invested in almost 150 startups in the mental health sector. In early 2023, they pumped in more dollars into another 30 startups in the sector. The past three years witnessed a total investment of over $10 billion in the US mental health sector, according to VBData.
What’s more, five mental health enterprises, including PsyBio Therapeutics and Greenbrook TMS, were listed on Nasdaq in the first half of 2023.
Zhao said China’s mental health market, by contrast, is still nascent, in the sense of being organized like in advanced economies. This suggests there is immense room for increasing public awareness so people with mental health issues would be more willing to seek professional consulting services. To that end, private clinics should enhance the training and selection of qualified counselors.
Zhao further said China’s mental health market currently grapples with many challenges. The need for related services is large but service quality is uneven, with many counselors entering the field with minimal training, resulting in subpar user experiences.