Against the backdrop of accelerating population aging in China, the silver economy has become a new strong driving force for the development of the national economy. The silver economy refers to the economic consumption ability of people aged 60 and above. This study uses theoretical analysis methods to investigate and study the “silver hair industry” (elderly consumption industry) in China, exploring the internal mechanisms of the development of China’s silver hair industry from the perspectives of population, policies, demand, and supply. Research has found that the number of elderly people (≥60 years old) is a favorable consumer base for industry development. Government policy orientation is a systematic guarantee for the development of industries. Market demand is to enhance and drive industry development, and provide strong support for industry development. The combined effect of four factors can increase the market size of the silver hair industry from less than 2 trillion yuan to over 7 trillion yuan. This conclusion will provide a necessary basis for the high-quality development of China’s “silver economy.”