The Silvers Series VI
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NOVEMBER 24, 2016 1) In this, the sixth in our Silvers Series of reports on consumers aged 65 and older, we look at three DEEP DIVE: sectors that encompass various antiaging and life- extension treatments and therapies. The first is beauty, including antiaging cosmeceuticals. The Silvers Worldwide, consumers spent $24.3 billion on antiaging facial skincare in 2015, which was equivalent to 29% of total global facial care product sales last Series VI: year. The Methuselah Complex 2) The nutraceuticals sector includes nutritional supplements and functional foods that promote and an Industry Thriving health, and consumers worldwide spent some $166 on the Promise of billion on these products in 2014. 3) The third sector is regenerative medicine, a branch of Longevity medicine dedicated to restoring degenerated cells, tissues and organs. The sector received some $2.5 billion in funding in 2015 in the US alone. Developers of antiaging technologies face a number of significant challenges in terms of regulatory approval, ethical implications, mass-market affordability and efficacy DEBORAH WEINSWIG Managing Director, in prolonging healthy life. Fung Global Retail & Technology [email protected] US: 646.839.7017 HK: 852.6119.1779 CN: 86.186.1420.3016 DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY 1 [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved. NOVEMBER 24, 2016 TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................................................................................... 3 INTRODUCTION ............................................................................................................................................... 5 THE MANIFESTATIONS OF AGING .................................................................................................................... 6 1. BEAUTY: ANTIAGING FACIAL SKINCARE, COSMECEUTICALS AND AESTHETIC SERVICES ................................ 8 COSMECEUTICALS AND OTHER ANTIAGING PRODUCTS ...................................................................................... 8 ANTIAGING PRODUCTS MAKE UP NEARLY A THIRD OF FACIAL SKINCARE SALES ................................................. 9 ANTIAGING FACIAL CARE BEGINS EARLY ............................................................................................................ 11 COMPANIES TO WATCH IN THIS SPACE .............................................................................................................. 12 AESTHETIC MEDICAL AND SURGICAL TREATMENTS ........................................................................................... 13 FORMS OF AESTHETIC TREATMENTS FOR ANTIAGING ....................................................................................... 14 COMPANIES TO WATCH IN THIS SPACE .............................................................................................................. 15 2. NUTRACEUTICALS………………………………….. .................................................................................................. 16 SENIORS’ HEALTH AND THE NEED FOR NUTRACEUTICALS ................................................................................. 17 GLOBAL SENIOR POPULATION AND GOVERNMENT REGULATION TO BE KEY DRIVERS OF GROWTH.............................................................................................................................................................19 COMPANIES TO WATCH IN THIS SPACE .............................................................................................................. 21 3.REGENERATIVE MEDICINE………………...................…. ..................................................................................... 22 FILLING THE WIDENING GAP BETWEEN THOSE ON ORGAN TRANSPLANT WAITLISTS AND DONORS…………………………………………………………………………………………………..………………………………………………… 23 STEM CELL THERAPY .................................................................................................................................... 24 GENE THERAPY ............................................................................................................................................ 25 TISSUE ENGINEERING .................................................................................................................................. 27 COMPANIES TO WATCH IN THIS SPACE .............................................................................................................. 27 OTHER TRENDS AND PROPOSED APPROACHES TO EXTEND LIFE ..................................................................... 28 KEY TAKEAWAYS: TECHNOLOGIES MAY ADVANCE, BUT CHALLENGES ABOUND ............................................. 30 APPENDIX ...................................................................................................................................................... 31 DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY 2 [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved. NOVEMBER 24, 2016 EXECUTIVE SUMMARY The global market for antiaging In this, the sixth report in our Silvers Series, we examine three sectors that products and services will reach encompass various treatments and therapies that are said to slow the aging $151.8 billion in 2016, and then process and promote life extension: cosmeceuticals (cosmetics that are grow at a CAGR of 8.0% to 2020, claimed to have medicinal properties), nutraceuticals (products derived reaching $206.5 billion. from foods that are claimed to have added health benefits) and regenerative medicine (a branch of medicine that deals with healing damaged tissues or organs). Research firm Future Market Insights forecasts that the global market for antiaging products and services will reach $151.8 billion in 2016, and then grow at a CAGR of 8.0% to 2020, reaching $206.5 billion. Worldwide, consumers spent $24.3 billion on antiaging facial skincare in 2015, according to Euromonitor International. This was equivalent to 29% of total global facial care product sales last year. Global consumers spent some $5.5 trillion on aesthetic medical and surgical procedures in 2014. IMCAS (International Master Course on Aging Science), an international organization focused on excellence in teaching in the fields of plastic surgery and dermatology, expects that figure to grow at an average annual rate of 7.2% to 2018, when it will reach $8.3 trillion. The number of nonsurgical procedures performed in the US grew by 22.3% between 2014 and 2015, and the number of surgical procedures performed grew by 7.1% year over year, according to the latest data from The American Society for Aesthetic Plastic Surgery. Consumers worldwide spent $166 billion on nutritional supplements and functional foods in 2014, according to Transparency Market Research, and the firm expects the market to grow at a CAGR of 7.7%, to $279 billion, by 2021. In 2015 in the US, regenerative medicine, stem cell and gene therapy research received some $2.5 billion by way of grants, contracts and other funding mechanisms, according to the National Institutes of Health. One of the problems regenerative medicine hopes to address is the growing organ shortage crisis. Source: Shutterstock DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY 3 [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved. NOVEMBER 24, 2016 THE SILVERS SERIES The era of the silver generation has arrived. Silvers, or people aged 65 and above, are driving a hugely disproportionate share of consumer- spending growth in many key regions globally. In some markets, they are driving nearly all such growth. This trend will continue for the next 20 years, and it is being fueled by two related forces. The first is demographics, as the silver population is growing considerably faster than other age groups are. The second is economics, as silvers hold a disproportionate share of wealth globally. DEMOGRAPHICS The population of silvers aged 65 and over will grow from 8% of the world’s population in 2015 to 13% in 2035, and will account for over one-third of total population growth through 2035, according to the United Nations’ Population Division. The size and growth rate of silver populations—and of the subgroups within them—vary considerably across key regions. By 2035, Japan, South Korea, Western Europe, North America and China will see silvers account for the highest share of their total populations, with seniors comprising more than 20% of the total. India, Southeast Asia and South America still have young populations, and the growth of the silver demographic relative to the rest of the population in these areas will be lower. AFFLUENCE Older households tend to be wealthier, when measured by total assets— which is understandable and inevitable, given that most people accumulate assets over their lifetime. What is more interesting is the disproportionate growth in the wealth of senior households seen in some countries. This tipping of the wealth balance from young to old has been fueled by changes such as the degradation of job security and opportunities, and the erosion of compensation and benefits for younger workers. The impact of the economic downturn, whether through government austerity or private-sector cutbacks, appears only to have amplified