Paradigm Shift towards Holistic Senior Care Catalyses the Global Aged Care Market, Says Frost & Sullivan

- Opportunities to prevail in Japan, Taiwan, and other markets on the verge of entering the super-aged nation category
Frost & Sullivan
2015-07-23 16:14 2121

KUALA LUMPUR, Malaysia, July 23, 2015 /PRNewswire/ -- With people of or above 60 years expected to account for roughly 22 percent of the world's population by 2020 the aged care market has become one of the most challenging yet attractive investment sectors for the 2015-2025 period. The current batch of seniors has clear preferences and the ecosystem is transforming due to their demands. The aged care market will not only require service providers who can run short-term and long-term care homes, but also offer integrated opportunities for medical technologists, ICT companies, robotics companies, senior care furniture manufacturers, nutraceuticals and pharmaceutical manufacturers, and other support service providers.

New analysis from Frost & Sullivan, Major Trends and Attractions in the Global Aged Care Market (, finds that the public sector, non-governmental organisations and not-for-profit companies currently fund and drive the market. While the participation of the private sector is less than 10 percent globally, wrinkle ranching or running care homes for profit is gaining credibility as a business model.

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From an investor's point of view, the aged care market is fragmented. Countries such as Canada, the United States (US), Western Europe, Japan, South Korea, Australia, New Zealand and the United Kingdom (UK) have well-developed public and private aged care systems, while the rest of the world is still in different stages of planning and is expected to attract investors in phases.

"Amongst developed markets, a two-tiered system in residential aged care is fast emerging and will have significant consequences for consumer choice," said Frost & Sullivan Healthcare Industry Manager Dr. Siddharth Dutta. "Although the majority of care homes are for profit, government-supported or not-for-profit homes have a considerable presence in the outskirts of big cities."

The governments in developed countries have either implemented encouraging policies for foreign and domestic players or are modifying existing laws to promote private investments. These governments have realised that unless they take these measures, the burden of aged care will fall squarely on them.

In countries like Malaysia, Singapore, India and China, the focus has been on developing real estate with facilities aligned to the special needs of seniors. Thus, these markets are most attractive for real estate companies and existing aged care companies globally.

From a pharmaceutical manufacturer's perspective, the aged care pharmaceutical segment is one of the least researched areas. However, more than 40 percent of assisted-living residents are diagnosed with ailments like Alzheimer's, opening up a large market for the aged care industry. To cater to this market, pharmaceutical companies may have to customise their packaging for easy tracking of medicine usage as well as better understanding and visibility of dosage.

"Japan is home to some of the oldest citizens in the world, and Germany, whose population aged 65 and over is expected to hit 21 million by 2030, represent lucrative markets for aged care," noted Dr. Dutta. "In Asia-Pacific, Taiwan is another important market with a fast-growing senior population."

According to a CNN report, Greece and Finland are likely to join the "super-aged" nation category by the end of this year. Further, eight countries, including France and Sweden will enter this league by 2020, followed by Canada, Spain and the UK by 2025, and the US, Singapore, and South Korea by 2030. China is also anticipated to witness severe aging pressure this year and is trying to formulate new plans to avoid a silver tsunami.

Major Trends and Attractions in the Global Aged Care Market is part of the Life Sciences ( Growth Partnership Service program. Frost & Sullivan's related studies include: Indonesia Healthcare Outlook, Global Orthopedic Implant Market, and Global Wound Care Market Outlook. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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Major Trends and Attractions in the Global Aged Care Market

Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61 (02) 8247 8927
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Carrie Low
Corporate Communications – Asia Pacific
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F: +603 6201 7402

Melissa Tan
Corporate Communications – Asia Pacific
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Source: Frost & Sullivan
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