Source: Citi Private Bank
Is healthcare set to grow?
This is underpinned by unstoppable trends rooted in demographics:
Aging Population:
The origins of today's aging populations lie in decades-old patterns of improving life expectancy and deteriorating fertility.
1. The world's population is aging at an unprecedented rate.
Around the globe, there are almost one billion people aged 60 and above - more than at any other time in human history, and by 2050 that will DOUBLE.
No. of People Above Aged 60
2. Illness and chronic conditions become increasingly prevalent with advancing years.
Older populations mean significantly higher demand for healthcare treatment, as elderly households spend more on healthcare.
Healthcare Share of Household Consumption
Source: Citi Private Bank
Growth of the middle class:
Belonging to the middle class means spending more on education, entertainment, taking the occasional holiday, owning a smartphone and of course, spending more on healthcare.
1. At a global level, we are witnessing the most rapid expansion of the middle class the world has ever seen.
By 2020, the middle class will become the majority of the global population for the first time ever. We are on pace to add another billion in seven years and another billion by 2028.
Global Middle Class
Middle Class = households between US$11 and US$110 per person per day (pppd) in 2011 purchasing power parity (PPP) terms
2. 88% of the next billion entrants into the middle class will be in Asia.
By 2030, Asia could represent 2/3 of the global middle class population.
Global Middle Class Population
Source: Brooking's Institute