Ageing and Lifestyle
What is the Ageing and Lifestyle theme?
Ageing and lifestyle describes the changing ways that people are living across the globe as life expectancies rise. Ageing populations are one of the greatest social, economic and political transformations of our time.
For example, the global 60 plus cohort is forecast to grow more than five times as fast, as the under-60 population from 2018 - 2030, creating challenges and opportunities for governments, companies and individuals alike.
Percent change in global population size (estimate), 2018-2030.
Source: U.S. Department of Commerce
What are the potential benefits of the Ageing and Lifestyle theme?
The investible opportunities of ageing populations extend far beyond the obvious areas of healthcare. The changing lifestyles and needs of older generations could represent a multi-decade growth opportunity for investors. By 2030, two-thirds of over-60s’ consumption growth in developed markets will be spent across multiple industries dedicated to living well, from beauty and fitness, to travel and entertainment1.
Meanwhile other sectors like real estate, financials and healthcare will have to rapidly adapt to retiring and elderly generations’ needs.
We invest in companies operating across four areas associated with the economic implications of longevity:
- Silver Spending: Industries dedicated to living well - beauty/aesthetics, personal care, fitness, housing, travel, leisure and entertainment
- Treatment: Companies seeking sustainable treatment solutions for the coming generations
- Wellness: The wellness industry includes preventative medicine, personalized treatments, nutrition, beauty and anti-ageing treatments
- Senior Care: Markets for senior housing and specialist assisted living facilities
Why do ageing populations matter for investors now?
1. We have reached a tipping point of ‘peak youth’ – the global number of adults aged 65 plus now outnumber children under five.2
2. Living longer naturally incurs higher healthcare costs. Preventing and treating age-related chronic diseases will be key driver of healthcare spending over next five years. Some 10,000 Americans hit the age of 65 every day, at which point personal healthcare spending doubles (US Dept for Medicaid).
3. The retirement savings gap will grow 5% a year from 2015 – 2050, meaning an additional US$28bn of deficit each day, according to the World Economic Forum3. The increasing onus on individuals to save for, and enjoy, longer retirements gives wealth managers opportunity in an broad market – less than a quarter (23%) of working age people have sought financial advice to help plan for retirement. (HSBC, September 2018).
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Forecast to grow 10-15% annually until 2025, the robotics industry is rapidly changing how we live and work%
Just 9% of retail transactions are made online today, which will likely grow as smartphones adoption rises globally^
Huge demographic and environmental changes are forecast to make Clean Tech a US$1.3 trillion market by 2020&
The growth of the global middle class is at a 150-year high, boosting consumption in Asia and the developing world#
1 United Nations, correct as at January 2019.
2 United Nations, correct as at January 2019.
3 World Economic Forum white paper, We’ll Live to 100 – How Can We Afford It?, May 2017
* Source: US Department of Commerce, latest data available as of March 2018
^ Source: Citi Research, Citi GPS “Technology at work v3.0”, August 2017
% Source: IFR World Robotics Report 2017, latest available data as of March 2018
& Source: Financier Worldwide, “Investing in the clean technology revolution”, January 2016\
# Source: UN, correct as at March 2018