Population aging is a global phenomenon, but it varies from country to country. In Brazil, for example, it is already a reality. In 2022, the Ministry of Health released a newsletter regarding the health of the elderly who indicated an estimate that in 2030 the number of elderly people will exceed that of children and adolescents aged 0 to 14 by about 2.28 million.
This demographic transition triggers important transformations in the market that must adapt to meet the needs of this population segment. Second dice From 2019 by Sebrae, the elderly represent 20% of consumer power, a percentage that cannot be ignored. As a result, a specific market has been developing: the silver economy, or silver economy. It is the totality of economic activities associated with the needs of this population group.
Many sectors are involved in Silver Economy and one of the most relevant and recurring segments within this transformation is health. Currently, there is a growing offer of products and services that aim not only at longevity, but also at solutions that seek a higher quality of life. In addition, the aging of the population has a direct impact on the organization of health care networks, the SUS and private plans.
This is added to the fact that this population portion is, for the most part, chronic, due to the absence of prevention in health care. A Fiocruz indicated that 25.1% of the elderly are diabetic, 18.7% are obese and 57.1% are hypertensive. Furthermore, the research highlights that chronic diseases are responsible for more than 70% of deaths.
The impact on the public and private health system
Um study published by Fiocruz in 2018, found that 75.3% of Brazilian elderly people depend exclusively on the SUS. In addition, according to dice released by the Federal Audit Court (TCU), the projection for the result of demographic changes and the aging population trend is that there will be an increase in expenditure in 2030 of approximately 11%.
Regarding supplementary health, ANS registered this year that Brazil has more than 50 million health plan beneficiaries. This number corresponds to 25% of the population. Within this installment, the Institute for Supplementary Health Studies released a survey highlighting that the number of elderly people in plans jumped from 3.4 million in 2002 to 7 million in March 2022.
Despite this increase, according to Fiocruz, the elderly are among those who feel most affected by the problems of private plans. Many complain, for example, about the difficulty in acquiring health insurance and the high costs, which occur due to the older age group, chronic illnesses and the consequent recurrence of plan services.
Health startups and the aging of the population in Brazil
Faced with this scenario, in Brazil, startups known as Agetechs Have been getting involved with silver economy. In this sense, they offer solutions aimed at solving these structural problems in Brazilian health, to the issue of the longevity and quality of life of this population.
A Pipe.Social, a showcase platform that connects impact businesses and investors, conducted research in 2020 that mapped 343 companies focused on offering products and services for the elderly in the most diverse sectors. Among them, for example, were health apps aimed at managing care and supporting end-of-life planning.
Also, a report from Date8 I brought an estimate from KPMG together with the Brazilian Private Equity and Venture Capital Association that, in 2019, around R$ 10 billion were invested in Silver Economy in Brazil. This indicates a great market potential, but it is still incipient compared to the international scene, with no unicorn, for example.
The health-oriented solutions in Silver Economy in the international context
The Data8 report, mentioned above, estimated a movement of US$ 15 trillion in the world resulting from Silver Economy in 2020. In this sense, it is evident that in the venture capital market the topic of aging is gaining more and more space. The Data8 report indicated that, in 2019, around 33,000 were built Deals in the world within this market, generating a turnover of around US$ 300 billion.
Unlike Brazil, this segment, in countries such as the United States, has a more advanced degree of maturity. One fact that evidences this reality is the existence of some Agetechs unicorns, such as Honor, Papa, and AlayaCare.
To Honor, Agetech North American, it is a network aimed at the elderly and a platform that provides personalized care, aimed at improving the home experience. According to GrowJo, Honor's estimated annual revenue is US$ 219.4 million per year. The Pope, also an American, works by connecting the elderly and families with companions, promoting daily assistance. According to GrowJo, the estimated annual revenue is US$ 179.2 million. Finally, AlayaCare, Canadian, is a home care software platform and had annual revenues estimated at US$ 100.3 million per year, also according to data from GrowJo.
In addition, there is a strong movement of Big Techs who started to invest in this market, focusing on longevity, such as Apple, Amazon, Google, Facebook, and Microsoft. The co-founder of Google, for example, created Calico in 2013, with the mission of understanding the biology of aging and working to develop interventions that provide greater longevity.
