Thanks to advances in medicine and technology, the world’s elderly population (65 years and older) is increasing, increasing global life expectancy by 10 years in 40 years, reaching 71 years in 2021. . This is because they have significantly more money available to spend and are more focused. When it comes to wellness, preventive health and self-care, this aging population could drive growth in products and services that align with these trends, and consumption patterns in Europe will mirror this strong demographic in other parts of the world. may provide important clues about changes in preferences.
“The rise of modern medicine, improved working conditions, urbanization, and greater access to food and water are all contributing to longer life expectancies,” said Sarah Simon, head of European consumer staples at Morgan Stanley Research. I’m making a contribution.” “Beyond economic, demographic and political influences, changes in consumption patterns among older adults have the potential to drive sales growth in consumer staples, particularly medical nutrition, consumer health and active nutrition. We expect.” For example, in European consumer staples, which she follows, this trend could increase sales by 4% to 10% annually through 2026.
Malnutrition is a common side effect of general aging and age-related chronic diseases such as cancer, which is becoming increasingly prevalent. According to the National Institutes of Health, the disease affects about a quarter of all hospital admissions worldwide. Other estimates suggest that two-thirds of cancer patients and the same proportion of older people are malnourished.
Addressing malnutrition can help reduce patient suffering. Making healthcare cheaper, more tolerable, and more effective. And the length of hospital stay will be shortened. All of this will reduce pressure on the healthcare system.
Medical nutrition includes high-protein supplements designed for the elderly and cancer patients, as well as specialized products to address specific illnesses, which are administered intravenously or intravenously into the stomach or small intestine through a feeding tube. Includes the use of specialized treatments. mouth. The latter category, which allows patients to continue treatment at home, is growing rapidly.
However, although healthcare professionals are increasingly using medical nutrition solutions, only one in three patients in Europe currently receive this type of treatment. As a result, analysts predict the market to grow by up to 7% in the medium term, as the population ages and the incidence of malnutrition and age-related diseases continues to increase.
The market for consumer health products has historically been resilient even during times of economic stress, growing approximately 5% annually worldwide. This includes products such as vitamins, minerals and supplements (VMS). dental care; and cold and flu treatment.
In Europe, analysts expect the subsector to outperform other major industries over the next 12 months, driven by a general trend toward health and wellness and by longer-living, higher-spending consumers. Expect. Over-the-counter cold and flu treatments, VMS, and denture care (which accounted for 4% of global retail dental sales in 2022) appear to be particularly well-positioned.
“As people live longer, we expect spending in key consumer health and oral care areas to continue to increase over the longer term,” Simon says.
Overall health awareness is increasing in developed countries, and consumers are becoming more concerned about how the food they eat affects their health.
The active nutrition subcategory, which includes protein-related products, nutritional supplements, and probiotics, is benefiting from the growing recognition that a healthy diet can positively impact the aging process. In fact, many governments and national health organizations are now promoting increased protein intake as one of the ways to improve the quality of life of adults, especially the elderly. Meanwhile, the link between gut health and various diseases is also particularly relevant to the theme of aging. For example, recent research has investigated the gut microbiome and probiotics in relation to dementia.
“While the protein subcategory has grown on average in the mid-to-high single digits annually, the market for protein-related products has grown 10% annually since 2009, making it the fastest growing consumer staple. “This is one of the most popular segments in the world,” he said. Simon. “This subsector should see further growth in the long term, as intake of protein supplements is expected to further increase among older adults.”
Additionally, consumers are turning to probiotic-rich supplements and foods like kimchi, kombucha, and yogurt to maintain or improve their microbiome. As this subcategory grows, companies with existing products, market share, and brand recognition among consumers will have an advantage.
For more insight and analysis, contact your Morgan Stanley representative or financial advisor for the full report, Aging Well (January 18, 2024).
