As we live longer, and the baby boomers have more wealth, people are shifting their focus to quality of life (particularly in richer economies). McKinsey estimates that more than US$450 billion was spend on products and services that support nutrition, hygiene and fitness in the USA alone in 2022 (and that is growing by more than 5% annually).
Thanks to Impax for the material for this blog post.
There are three main categories:
1. Personal care solutions for teeth, eyes and ears, can help prevent disease and physical deterioration (in all types of economies, developed and developing)
2. Self care – using over the counter medications, supplements, monitoring devices, can serve both as a substitute for and a complement to traditional healthcare.
3. Movement and fitness can boost both personal well-being and productivity at work (but also in later life).
Oral care: Over US$45 billion in global productivity is lost each year due to untreated dental disease which afflicts more than half the worlds population (3/4 sufferers live in low and middle-income countries, but the problem is global). In the US alone 34 million school hours and 92 million work hours are lost each year for unplanned dental care. In addition, improvements in dental hygiene can enable lower heart disease and diabetes. Company – Colgate Palmolive. This is the only brand bought my more than half of global households, and the company continues to develop innovative products – in 2022 Colgate developed the first recyclable toothpaste tube.
Eye and Ear care: Vision and hearing loss can cause isolation, depression and cognitive decline and also increase the risk of falling and dangerous driving. It is estimated that the global economic cost of hearing loss exceeded US$981 billion in 2019, and vision impairment reduces global productivity by an estimated US$411 billion.
Company – Amplifon. An Italian provider of hearing aids in 25 countries. Although use of hearing aids is increasing, adoption remains low – the WHO estimates that only 17% of those people who would benefit from a hearing aid actually use one. To bridge the gap of between 77% to 90%, Amplifon is offering interactive apps and virtual care teams to allow consumers to bypass retail stores and test their hearing at home, and working with legislators to enable some hearing aids to be available without a prescription.
Company – Alcon. Provides vision correction products and specialized equipment for cataract and retinal surgeries. As well as providing their solutions in developed countries, Alcon is working to make solutions more accessible in developing countries where the formal eyecare is typically limited.
Self-care products: One study estimates that the use of self-care products saves 22 million quality-adjusted life years each year, and this could increase to 39 million by 2030. For every US$1 Spent on consumer healthcare, it is estimated that this generates US$7 in future healthcare savings (because over the counter medicines are more affordable than prescription drugs, and doctors’ visits are avoided for minor ailments.)
Company – Haleon. One of the world’s largest makers of OTC medication and vitamin supplements by revenues. They aim to improve the wellbeing of 50 million people each year through its products by 2025. Many of the company’s offerings aim to help people address major discomforts and boost their quality of life. – An example is Centrum Silver multivitamins which have been shown to support the cognitive function and memory of older adults in recent academic studies.
Reducing health issues through fitness services: Exercise helps people stay healthy, reduces stress and supports immune systems. It can also boost productivity at work by improving sleep, vigour and focus.
The global fitness industry has sustained long term growth.
Company – Planet Fitness. A leading US gym chain, whose services enable people to work out affordably. 40% of its members had never joined a gym before, and it is focused on expanding access to its 2,400 fitness facilities in Northern America. More than ¾ of American’s live within 10 miles of a Planet Fitness gym and about ¼ of it’s 17 million members are a part of Gen Z (under 25s). Low membership fees starting at US$10 a month and free summer memberships for high school students, in conjunction with digital tools are providing a base of consumers for the future.
