According to the United Nations, the number of people in the world over the age of 60 will increase from 650 million in 2013 to 2 billion in 2050. This is undoubtedly already leading to increased medical needs, but it is also driving growth. The same goes for other sectors where various investment funds are already looking for opportunities within this long-term structural trend.
“Older people also want to live longer, healthier, more active and autonomous lives as possible, and they have the financial wherewithal to do so.The response to this demand is the silver economy. The silver economy is defined as the sum of all economic activities that meet the needs of people over 60, including products and services purchased directly by people over 60, and activities derived therefrom. ” said Eric Rabe, manager of CPR Invest Silver Economy, an Amundi Group fund. In fact, in 2025, the silver economy is expected to contribute 32% of Europe’s GDP (6.4 trillion euros) and 38% of EU jobs (88 million).
His vision is that opportunities will emerge from this situation in multiple areas. First, in the asset collection business (insurance and retirement savings), “major companies offer high profits thanks to cash compensation policies for shareholders.” Healthcare (pharmaceuticals and medical technology) will also offer options. “Europe’s large pharmaceutical companies remain undervalued because they have important developments in new medicines. On the contrary, Europe’s medical technology sector remains more complex,” said Rabe. Finally, in leisure, “air transport and hospitality continue to have strong demand.”
According to Fidelity, populations in emerging countries such as China are increasingly aging.
Aneta Winimko, manager of the Fidelity Funds Sustainable Demographics Fund, said this aging is not limited to countries like Japan, Spain and other developed countries, but is also “increasingly observed in emerging countries such as China. Desire to live and declining birth rates. “In fact, Asia is aging at an unprecedented rate.”
Among the demographic effects of aging is increased health spending as the population enters old age. “This should create opportunities for healthcare providers, device manufacturers (for example, manufacturers of hearing aids, blood pressure monitors, and other clinical devices), and even clinical laboratories and health insurance companies,” Wynimko believes. I am. Investment Opportunity: “The increasing purchasing power and disposable income of this older population will stimulate demand for luxury goods and skin care products.”
For Candriam Equities L Global Demography Manager Allan Foll, there are several main sources of opportunity. First, there is an increase in medical needs, as “the main consumers of health services are the elderly, with expenditures by people aged 65 and over five times higher than those under 65.”
Candiam emphasizes that the average life expectancy around the world has increased by 25 years since 1950.
Second, Foll highlighted that global life expectancy has increased by 25 years since 1950, stating that “living a healthy and active lifestyle is a major contributor to overall well-being. , this is expected to drive demand for healthier food, activities, sports, and connected devices for monitoring.” health. “Third, the expert believes that as people live longer, it is important to plan for retirement. “This includes ensuring a stable income and maintaining your current lifestyle. This includes increasing your assets to maintain your finances and preparing for rising medical costs.”
CBNK Asset Management has two investment funds that address this trend cross-cuttingly, CBNK Health Pharma and CBNK Caminos, with a focus on infrastructure and future city investments. We are focused on adapting to the needs of the population,” says Investment Director Irache Oria. In his opinion, investment follows structural changes in demographics and “needs to focus on all kinds of services and products that will see increased demand by populations with other needs.” Although doctors, pharmacists, and healthcare are thought to be the focus, “in the technology sector, we are definitely seeing a shift towards developments and applications that improve connectivity and make daily life easier for older adults.
“On the premise of living longer and better, we can find the best opportunities,” they point out in Abanca. In that sense, they are looking with special interest at companies in the health sector, both related to biotechnology and medical devices. “Both subsectors are clear beneficiaries of the theme of artificial intelligence, which is being applied both to the development of new drugs and to new medical robots applied in surgical interventions and disease detection.”
some examples
Glasses and laboratory. Two companies stand out in Fidelity Fund’s Sustainable Demographics portfolio. Eyewear company Essilor Luxottica “will benefit from increases in both medical spending and general spending among silver consumers,” believes manager Aneta Winimko. We are exposed to demographic driven and structurally growing demand for vision care solutions. ”
Please also mention Thermo Fisher. “The company is a leading player in this sector, offering superior products to long-term growth end markets such as pharmaceuticals, biotechnology and scientific research, with demand structurally increasing as the population ages. It should be.”
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