While health care companies are among the biggest beneficiaries in the longevity value chain at present, CIO also expects a growing number of beneficiaries in the consumer, financial services, and real estate sectors. (UBS)
CIO project the longevity market to grow from USD 5.3tr in 2023 to USD 8tr by 2030.
Here are three reasons now is an opportune time to invest in longevity:
The share of older people is rising. The global population is aging rapidly, with the number of individuals aged over 60 expected to double by 2050 to surpass 2 billion, according to the United Nations World Prospectus 2024. This demographic shift presents substantial market opportunities, particularly in sectors catering to the needs of older adults.
Life expectancy is climbing. Advancements in medical science and technology have significantly increased life expectancy. Breakthroughs such as antibiotics, vaccines, and advanced surgical techniques have drastically reduced mortality rates from infectious diseases like tuberculosis and polio. According to UBS Research, vaccines have saved one billion lives by preventing diseases such as smallpox, measles, and more recently, COVID-19. As people live longer, there is a growing demand for products and services that enhance the quality of life during retirement.
The focus on being healthy for longer is intensifying. People increasingly seek to live both longer and healthier lives. Significant medical advances driven by improvements in diagnostic tools, enhancing preventive care, and drug innovation mean chronic diseases can now be adequately managed. A 2020 UK Biobank study found that adopting a healthier lifestyle, regardless of existing health conditions, leads to longer life expectancy, with quitting smoking offering the greatest survival advantage. Additionally, public health initiatives and improved access to health care have contributed to better health outcomes and longer lives. Lifestyle changes, such as healthier diets and increased physical activity, have also been crucial in preventing chronic diseases and promoting longevity.
So while health care companies are among the biggest beneficiaries in the longevity value chain at present, we also expect a growing number of beneficiaries in the consumer, financial services, and real estate sectors. We believe that longevity can comprise up to 5% of an investor’s allocation to global equities. For investors with existing exposure to our “AI” and “Power and resources” portfolios, investing in the longevity value chain may provide potential growth and diversification benefits, in our view.
Original report: Investing in longevity, 28 March 2025.
