Demographics: the wellness revolution
The Healthcare sector underperformed in 2023 as attention shifted to AI and the Magnificent Seven stocks. Today, as the economy slows, the sector’s growth possibilities and defensive characteristics may become more attractive.
“Demographics are destiny”. In fact, the share of the population over 60 will double to 2.1 billion by 2050. In the context of this ageing population, obesity has tripled in the world since the mid-1970s. Moreover, COVID, ageing, and rising incomes have raised awareness of wellness and how to increase people’s lifespans and even more importantly, the number of healthy living years.
AI can reduce the cost of drug development and boost innovation in the sector. Eating sustainably and healthily, wellness technology, medical technology and innovation in pharmaceuticals including weight loss drugs will create volatility, disruption and opportunity.