The $8 trillion market: who's going to capitalize on longevity

Population aging, which the WHO has repeatedly warned about, does not only lead to problems for public pension systems and a care crisis. There is money to be made from it. 

Swiss bank UBS calls aging populations one of the «opportunities for transformational innovation» that will drive equity growth over the next decade. It estimates the longevity market will grow by $2.5 trillion annually and reach $8 trillion by 2030, quoted by CNBC. 

UBS's longevity portfolio now consists mainly of healthcare companies, but the bank also sees opportunities in the financial sector - in retirement planning and financial sustainability.

Morgan Stanley has a similar viewpoint. Michael Cyprys, an analyst at the bank, believes that the expected increase in life expectancy could have «significant implications» for the entire asset and wealth management industry. People will live longer and will need to accumulate capital to provide for retirement. This could lead to a «bull market for financial advice,» he explains in an interview with CNBC. Morgan Stanley predicts that retirement planning on the part of the elderly population could generate an additional $400 billion in revenue for financial firms by 2028.

So who can capitalize on longevity? Morgan Stanley singles out Blackstone and Brookfield - both of which, among others, offer annuities, investment solutions that allow the client to receive regular payments over a long period of time. Also on his list is BlackRock. The company has LifePath Paycheck, for example. This is a fund with a target date (by which the capital must be formed), which also «built in» regular income payments through partnerships with insurance companies. According to Morgan Stanley, Bank of America may also benefit: it will be able to capitalize on the growing demand of wealthy clients for individual pension plans.

But finances alone will not be enough. Nowadays, longevity is a rather broad concept that includes everything that can rejuvenate, prolong life and help preserve its quality;

«Longevity is now a status symbol,» said Alex Hawkins, director of strategic foresight at The Future Laboratory, to the Financial Times newspaper. In the future, it could supplant fashion and expensive accessories in terms of luxury, and an important status indicator will be what treatments a person has access to and what anti-aging products they have, he adds.

To ensure longevity, consumers are investing in «preventative, specialized solutions,» wrote Vogue Business in November 2024. 

A survey of more than 40,000 consumers conducted by Euromonitor late last year found that people are changing their habits to live longer. 

84% of U.S. consumers say wellness is a «top» or «important» priority, 79% in Britain, and an impressive 94% in China, wrote McKinsey analysts in a report last May. In the U.S. alone, people spend more than $500 billion a year on wellness. McKinsey analysts estimate the global market for healthy lifestyles at $2 trillion;

The older generation is actively taking care of themselves, but the industry is being driven forward by millennials and zoomers. The former are thinking mainly about physical health, while the latter are considering a well-rounded approach to lifestyle that includes good sleep, mindfulness and appearance, says Anna Pione, a partner at McKinsey in New York and co-author of the report.

In the U.S., Generation Z and Millennials make up 36% of the adult population and spend 41% of annual spending on healthy lifestyles. Consumers 58 years and older (35% of the population) spend only 28%. 

These findings apply to different regions, McKinsey says. One reason young and middle-aged people are paying more attention to health is that they feel burnout and fatigue more than the elderly. In addition, the endless rejuvenation tips and trends on social media are pushing them to shop. 

Millennials and zoomers are banking on gadgets and trackers. Older generations are using them too, but not as actively, writes Vogue Business. 

The number of smart device users has been steadily increasing since 2020, the publication points out, citing Euromonitor. Trackers have evolved from simply counting steps and calories to collecting data on sleep quality, glucose levels, heart rate, stress, menstrual cycle and fertility. Trackers have evolved from simply counting steps and calories to collecting data on sleep quality, glucose levels, heart rate, stress, menstrual cycle and fertility;

«Brands are promoting wearable devices not so much as sports and fitness trackers, but as indispensable health assistants,» says says Vogue Business' Emilia Morano-Williams, senior trends and technology editor at forecasting agency Stylus. 

Apple, Samsung, Oura Health, Garmin, Zoe and Flo provide consumers with real-time data and analytics. Built-in AI assistants not only signal body issues, but also suggest ways to fix them, weight loss programs, exercise regimens and personalized sleep and nutrition advice. Built-in AI assistants not only signal body issues, but also suggest ways to fix them, weight loss programs, exercise routines and personalized sleep and nutrition advice. 

For example, Whoop offers a I&I coach that helps people make sense of their health data, and Google's Pixel Watch advises breathing exercises if it notices signs of stress - a rise in temperature and heart rate. Flo can advise you to see a doctor or take a certain test if it «sees» menstrual irregularities. 

And the latest update for the Apple Watch has introduced a built-in AI coach that encourages the user and comments on progress and results. Back in 2019, at the Time 100 Summit, CEO Tim Cook stated, «I think there will come a day when people look back and say that Apple's greatest contribution to humanity was healthcare.»

Another segment of the health and longevity market that Euromonitor focuses on is dietary supplements, and it is also growing;

Surprisingly, proven ways to prolong your life, such as quitting smoking, increasing physical activity, avoiding loneliness, are not as appealing as commercial treatments, writes Carola Long, FT columnist. 

Euromonitor also notes the growing popularity of NAD+ peptide drip supplements. In the report, the company predicts that global sales of vitamins and supplements will reach $139.9 billion in 2025. Consumers are increasingly turning to this product category to address their concerns, from weight loss to mental well-being and nutritional support. 

The beauty and luxury cosmetics industry is also active in the longevity segment. 

An example of how longevity is creeping into brands' marketing campaigns is Dior's L'Or de Vie La Crème cream, for 1600 euros for 50 ml, it contains Golden Drop Life Technology, it's practically an «elixir of longevity,» wrote the FT. It's based on the antioxidant superoxide dismutase. This protein is more actively produced in species with the longest lifespans, Dior points out on its website. It also contains the same NAD+. 

Another example: the launch of Loya, a Swiss brand selling the dream of aging beautifully. The company launched on May 13 this year in collaboration with SkyLab, a biotech business incubator in Switzerland. Loya articulates the idea that aging is not only a physical experience, but also an emotional one. «Over time we see changes in texture, firmness and radiance, but we also experience changes in energy, mood and how happy we feel,» the brand says in a statement.

The company has already released its first moisturizing creams and serums, six products in total. Microbloom-SH technology is responsible for the effective delivery of active ingredients to skin cells, while Happy Feel Boost affects the emotional sphere and improves mood, the manufacturer claims;

Both of these products emphasize in their marketing promotion not only the use of science-based solutions, but also the promise of vivid emotions when used. And that's for good reason: consumers pay a lot of attention to the experience a product promises. The Future Laboratory calls this in its report «the new paradigm of luxury.» 

This can include both the desire to look younger for longer and the prospect of actually living a longer and higher quality of life, writes the FT.