Anti-aging – promising investments

Overview of the global anti-aging market

Izvestia Saratov

The beginning of the twenty-first century is considered to be the era of information technology, literally changing our world before our eyes. Against their background, another fast-growing industry is not so noticeable, although its impact on civilization may become even more grandiose. We are talking about the anti-aging industry, or Anti-Aging, to use Western terminology.

What does the anti-aging market look like today

In 2013, Transparency Market estimated the volume of the anti-aging market at $122.3 billion with growth of about 8% annually. According to forecasts for 2019, it will grow to 200 billion US dollars, and if we take into account some categories of wellness products, in 2013 the volume was already 261.9 billion, and in 2018 this figure will reach 345 billion dollars (BCC Research). According to Global Industry Analysts, 350 major manufacturers are involved in the industry, including American Allergan Inc., Avon Products Inc., European Beiersdorf AG, Chanel SA, L'Oreal, as well as Asian leaders – Amorepacific, QNet and Tiens.

The market structure reflects the level of progress in the study of the aging process. From a biological point of view, aging is defined as deterioration and/or decrease in the functional properties of the body at three levels: cells, tissues, organs. This process manifests itself in external and internal signs, deteriorating health and appearance. At the moment, the anti-aging market offers mainly products that rejuvenate the appearance. They, in turn, are divided into products, services and devices. Transparency Market reports suggest the market segmentation shown in the table.

Table 1. Market Segments by TransparencyMarket

The distribution by segments is unequal, the largest share belongs to products, followed by services, and all kinds of technical devices complete the sequence.

It should be noted that there is no consensus on what should be included in anti-aging products and what should not. The consequence of this is the difference in estimates and forecasts. For example, as follows from the table, Transparency Market does not include in this industry means of weight control, improving metabolism, strengthening immunity. As a result, significant sales volumes of products from a number of large manufacturers are not taken into account. For example, with this approach, reports "pass by" a whole class of antioxidant drugs from global companies Allergan, Herbalife (USA), Pfizer, Galderma (Europe), Takeda Pharmaceuticals (Japan) and QNet (Malaysia). At the same time, they are positioned precisely as means that slow down aging.

There is no unity on another, albeit not so significant section – "Devices". A number of research centers, for some reason, do not include LED devices, ultrasonic and microcurrent devices in the list. In this case, companies that produce combined devices, such as Fyola (Canada) or QNet (Malaysia), are lucky. Their compact portable devices use several technologies, including radio frequency, so they get into the report. At the same time, expensive stationary specialized ultrasonic massagers and chromotherapy devices (Photon skin rejuvenation) from Siemens will not come into view.

In general, despite the difference in numbers, everyone recognizes that the maximum success has been achieved today in rejuvenating the appearance. This segment is the most developed, and it is often identified with all anti-aging. In terms of improving health and restoring physical capabilities, the results look much more modest. At the same time, it is in these areas that breakthrough technologies are expected to appear, which can instantly change the ratio of segments.

Anti-Aging Market Drivers

The anti-aging market is developing intensively, despite the crisis phenomena. Against the background of a decline in mechanical engineering, the oil and gas industry, metallurgy, there is an increased interest in the reasons for its stable growth. Explaining what is happening, all analysts are unanimous and agree on two factors – the demographic situation and the change in attitudes to old age on a global scale.

Demographic aspect

The "baby boom" generation is of particular importance for the anti-aging market - everyone who was born in the period 1946 – 1964. This generation is the most numerous, and since 2012 it is they who are starting to retire. In the coming years, in the United States alone, approximately 8,000 people will cross the age limit of 65 every day.

According to AgeLab of the Massachusetts Institute of Technology, within the next decade, 50% of the European population will be over 65 years old, and in Thailand by 2030 the average age of residents will be 50 years old! In Italy, there will be more pensioners than active workers in the same year. In the UK, according to the BBC, today there are more than 20 million "baby boomers", and they own 80% of the national wealth. Thus, the number of consumers in the Anti-Aging market is automatically and continuously growing, and in most countries they represent a wealthy category of the population.

Changing attitudes towards old age

The baby boom generation, moving into the older age categories, is changing the traditional idea of old age as a passive time of illness and infirmity. Modern men and women aged 60-65 no longer consider themselves lost to society and do not intend to succumb to diseases. Looking at them, other generations are also changing their attitude to health, adopting new standards of a healthy lifestyle. As a result, active consumption of anti-aging products begins at the age of 30. From this age, the majority in developed countries become buyers of anti-aging products, regardless of gender, race, nationality, citizenship. Under such circumstances, the prospects for the industry producing such products are truly fantastic.

Prospects for the development of the anti-aging market

Today, events are taking place that will determine the course of development of the entire antiaging for many years to come. The essence of what is happening is an unprecedented surge in investments in biotechnology, genetics and other areas that promise the opportunity to slow down aging, and make old age itself active and healthy. Venture capital companies invested $4.3 billion in software development for this area (digital health) alone in 2014, and 2015 will be no less active. Large investment funds such as Google Ventures are already working in this direction, dozens of startups are being created here by celebrities of the venture world: Peter Thiel, Craig Venter, Robert Hariri. All this testifies to the prospects of the direction and gives hope for fundamental breakthroughs in this area.

Portal "Eternal youth" http://vechnayamolodost.ru
06.04.2016