Sep 22, 2016, 1:58 PM ETConference Presentation, Panel

Tapping Into Asia's Longevity Market

Global life expectancy is increasing rapidly, with the median age in major Asian economies projected to rise significantly between 2015 and 2050.
Current demographic estimates (1 billion people over 60 today) are considered conservative; the number could reach 2.1 billion by mid-century, with China alone expected to have more people over 60 than the entire population of the United States.
Asia is experiencing a faster rate of population aging compared to Europe and Russia, with emerging markets like Thailand and Cambodia facing "astounding" demographic shifts despite having younger current populations.
The primary driver of the changing age dependency ratio is not just increased longevity but declining fertility rates, creating a structural misalignment between the proportion of old to young in society.
By mid-century, the population over 60 is projected to outnumber children and teenagers globally.

In the United States, people aged 60 and over hold 70% of disposable income, representing a $15 trillion market for products and services that could potentially double in value with targeted innovation.
S&P Global projects that if current policies remain unchanged, the proportion of sovereign debt rated "speculative grade" (BB or below) could rise from 10% to 25% over the next 50 years.
The primary drivers of potential credit rating downgrades include unbalanced government budgets, rising debt levels, and increasing interest burdens associated with aging populations.
S&P identifies reducing the cost of age-related healthcare spending as the single most effective lever for governments to improve fiscal sustainability and reduce debt burdens.
A "no-change" scenario assumes continued reliance on 20th-century institutions for 21st-century demographics, leading to potential fiscal crises similar to those faced by advanced economies today.

Data indicates an "expansion of morbidity" in countries like Japan, where increased life expectancy is not yet matched by increased healthy life years, resulting in longer periods of poor health.
The number of available caregivers is decreasing concurrently with the aging population, creating a critical shortage in care support for older adults.
Social isolation and loneliness are emerging as chronic diseases for older adults, correlating with higher mortality risks and physical health issues, particularly in Asian contexts where adult children are often busy with work.
Dementia cases are projected to quadruple by 2030, necessitating the development of "dementia-friendly communities" and integrated care models.
Older adults' skin becomes more fragile and susceptible to injury with age, increasing the risk of hospital-acquired infections and falls; 61% of workers caring for frail parents report declining promotion opportunities, arriving late, or leaving work early.
Intergenerational relationships are identified as a key factor in improving productivity and well-being for older adults, with studies showing that families with active intergenerational interaction report better health outcomes.

Nestlé is pivoting from a focus on "food and life" to a "nutrition, health, and wellness" model, viewing the aging demographic as a market with "unlimited potential" for extending both life and functional ability.
Nestlé is leveraging its distribution network (e.g., coffee machines) to create subscription-based wellness services in Japan, delivering personalized nutritional supplements based on daily dietary tracking.
Skin health is being repositioned from a cosmetic issue to a preventative medical necessity, with companies focusing on preventing falls and infections by addressing foot health and skin integrity.
Design philosophies are shifting to include older adults in the product development process, exemplified by IDEO hiring a 92-year-old engineer to ensure products like walkers are functional and intuitive for the end-user.
Life insurance products are evolving from death coverage to "wellness" models that include pre-paid elderly care, home management, and end-of-life services, as demonstrated by Chinese insurers like Taikang Life.
Service models are innovating toward "Uber-like" on-demand care, allowing families to request specific levels of assistance or transportation for seniors without long-term commitments.

Governments are urged to shift from a 20th-century institutional framework to one that supports age-friendly workplaces, including flexibility in retirement and retention of older workers.
Singapore has launched an action plan for successful aging that includes "living labs" and housing models designed to co-locate generations and restore the traditional "kampong" spirit to combat isolation.
Private sector engagement is recommended as a measured alternative to cutting public services, requiring government frameworks that allow companies to innovate in healthcare and caregiving without creating gaps in service delivery.
Investors are encouraged to create new capital market products, such as ETFs and mutual funds, specifically screening for businesses addressing the aging demographic, a sector currently lacking diverse investment vehicles.
The consensus among panelists is that proactive policy changes and business innovation can transform aging from a crisis into an engine for economic growth, while inaction risks significant fiscal and social deterioration.