China's piano industry, once emblematic of middle-class aspiration, is experiencing a significant downturn. Several factors contribute to this decline, including economic challenges, educational reforms, and shifting cultural interests.​

Economic pressures have made it increasingly difficult for middle-class families to invest in pianos and associated lessons. The rising cost of living, coupled with an uncertain economic climate, has led many to view such expenditures as burdensome. Additionally, educational policy changes have reduced the emphasis on piano proficiency in national examinations, diminishing the instrument's role as a pathway to social mobility. ​
 

A major factor in the decline of piano education in China is its diminished role in academic advancement. In the past, students who achieved Grade 10 in piano could earn extra points for their zhongkao (Senior High School Entrance Examination), making piano proficiency a valuable asset for securing spots in prestigious schools. This policy, introduced in 2008, triggered a nationwide surge in piano enrollments, as parents rushed to sign their children up for lessons in hopes of giving them a competitive edge.
 

At its peak, the piano was considered almost a necessity for those wanting to claim an interest in the arts. By 2021, there were more than 8 pianos per 100 urban households, up from just 1.3 in 2001. In Shanghai, Guangdong, and Beijing - the regions with the highest number of pianos - the instrument became a status symbol, reflecting both cultural sophistication and financial stability. Annual piano sales in China soared to 400,000 units between 2017 and 2020, far surpassing the 30,000 sold annually in the US. With 40 million students enrolled in piano lessons, the industry thrived on exam registrations and tuition fees.
 

However, this boom came to an abrupt halt in 2018, when Chinese officials removed bonus points for artistic achievements from zhongkao evaluations. This change shattered the incentive structure that had fueled the piano craze, forcing parents to reconsider the cost and effort of music education. The final blow came in 2021 with the "double reduction" policy, which drastically cut back extracurricular activities and private tutoring, further weakening demand for piano lessons. As a result, what was once a booming industry collapsed almost overnight, leaving manufacturers, teachers, and students facing an uncertain future.

Leading manufacturers like Pearl River Piano Group and Hailun Piano have reported substantial revenue declines, with both companies experiencing over 20% drops in 2023. This downturn reflects a broader trend affecting the entire musical instrument industry in China. ​

These two companies are not alone in their dire straits. According to data from the China Musical Instrument Association, in the first three quarters of 2023, 232 enterprises above a designated size - those generating at least 20 million RMB (approximately US$2.82 million) in annual revenue - experienced a 21.28% year-on-year decline in operating income. Profits plummeted by 43.35%, resulting in an industry-wide profit margin of merely 6.59%.

Recent reports indicate that Parsons Music Group, China's third-largest piano manufacturer, is facing significant challenges. The company has closed its German subsidiary, Grotrian-Steinweg, and has begun reducing staff and shutting down retail outlets within China. ​
 

The second-hand piano market is also feeling the effects, with a surge in listings from families whose children have lost interest in learning the instrument. On platforms like Idle Fish, China's largest second-hand trading platform with over 200 million registered users, numerous listings feature pianos accompanied by descriptions such as "my child has no interest in learning it anymore." These pianos, once purchased at prices ranging from 50,000 to 60,000 RMB, are now being offered for as low as 4,000 RMB, with many listings not exceeding 10,000 RMB.

This trend is further exacerbated by the closure of numerous music schools and piano shops; approximately 40% of the 650,000 music schools and 25,000 piano shops operating in early 2022 had shut down by the end of 2024.​

After 2018, the sales of Hailun Piano and Pearl River Piano went downhill. The sales volume of Hailun Piano's upright pianos fell from 36,738 units in 2019 to 22,792 in 2022, while that of Pearl River Piano decreased from 156,100 to 110,200 over the same period.

Demographic shifts, such as declining birth rates, have also played a role in reducing the demand for pianos. With fewer children, there is a smaller market for piano education and sales. Moreover, the "double reduction" policy aimed at decreasing the academic burden on students has led parents to reconsider the necessity of extracurricular activities like piano lessons. ​

All piano manufacturers worldwide are, in some form, connected to China: some have certain brands produced there, while others purchase various components for their pianos from Chinese suppliers. Unfortunately, a significant percentage of piano manufacturing depends on the Chinese market; therefore, events in China do not remain isolated but have a substantial impact on the entire industry. We will monitor this situation closely and keep you informed of any updates.