Follow the money: Longevity fuels explosive growth in services for the "older" market
US Bureau of Census report confirms enormous increases in revenues
(Photo credit: George Arthur Pflueger on Unsplash)
It’s not that the bottom line is particularly startling here — longevity means more older people means more market opportunity for services geared to their needs. What’s interesting is the sheer size and scale of that opportunity, particularly when it can be expressed with hard numbers instead of generalized cheerleading.
That’s why I found this report from the US Census Bureau so interesting. They quantified, and correlated, population growth for the “older” population, with revenue growth for the industries that serve their needs.
First, on the population side:
By 2050, the US population aged 65 and over will be 83.9 million, nearly double what it was (43.1 million) in 2012. Most of that increase comes from Baby Boomers.
Next, on the revenue side, the report measures growth from 2013 to 2020 — just seven years — for five key industries or sectors. When we factor in future projections, the numbers would be much more impressive. But already they’re dramatic:
Continuing care retirement communities
2013 revenues were $28.5 billion, rising to $40.3 billion in 2020, an increase of 41.4%
Assisted living facilities for the elderly
2013 revenues were $25.0 billion, rising to $33.6 billion in 2020, an increase of 34.4%
Services for the elderly and persons with disabilities
2013 revenues were $35.4 billion, rising to $57.4 billion in 2020, an increase of 62.1%
Home health care services
2013 revenues were $68.3 billion, rising to $102.7 billion in 2020, an increase of 50.4%
Skilled nursing facilities
2013 revenues were $110.8 billion, rising to $130.1 billion in 2020, an increase of 17.4%
The Census Bureau uses these numbers to offer “insight into the care choices the nation’s seniors and their families are making.” A very valuable undertaking, to be sure. But for our purposes here, it’s really a matter of confirming — yet again — the spectacular impact that longevity is having on the marketplace as a whole. Smart companies are realizing it.