Source: UBS
The "longevity market" is rapidly becoming a transformative force in the global economy, driven by increasing life expectancy worldwide and demographic shifts toward an older population. According to UN estimates, the number of people reaching the age of 100 is expected to increase eightfold to 3.7 million by 2050.
We categorize this market into two categories: drivers and beneficiaries. Among the drivers are companies in pharmaceuticals, medical technology, and health care services, which, with their innovative products and services, ensure that the phase in which people age healthily is extended. The beneficiaries—consumer goods, financial services, real estate, and industrial sectors—are those areas that benefit from the evolving needs of an aging population.
The recent market correction, triggered by political uncertainties, has created an attractive entry point for investors to invest in both drivers and beneficiaries of longevity. We expect, for example, that the upcoming changes and updates to payment rates and policies for Medicare Advantage plans in the US for 2026 will be a positive short-term catalyst for the sector, signaling political stability and President Trump's commitment to preserving Medicare.
In health care, we see opportunities in the pharmaceutical industry, medtech, and health care services, as advanced treatments can reduce the incidence of age-related diseases. We anticipate a significant market opportunity in health care and expect revenue growth for the global health care sector to rise to USD 2.2 trillion by 2030. While recent obesity medications have garnered significant attention, the next wave of innovation is likely to focus on oncology, Alzheimer's, and cardiovascular diseases.
Furthermore, the industry for personal medical products and devices is crucial for addressing the global demographic shift toward an older population by offering products that improve health and extend longevity. Financial services companies also have an opportunity, as asset managers can cater to the growing need for personalized advice. Private market investments typically require longer holding periods, which align well with the extended time horizons of retirement planning.
The world's population is aging rapidly as life expectancies rise, fostering a "longevity economy" that significantly increases demand for health and wellness services as well as senior living facilities. This demographic change also offers growth and opportunities in the global real estate market, including wellness initiatives, independent or assisted living, nursing homes, and specialized health centers.
In our third TRIO ("Transformational Innovation Opportunity"), we again highlight companies that are leaders in the mentioned areas and recommend investing through various investment solutions. Joining our two other TRIOs— Artificial intelligence and Power and resources—the theme of Longevity is characterized by its defensive, stable qualities, which are particularly in demand in the current market environment.
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