The escalating number of seniors has been driving growth for in-home care
Los Angeles, CA (PRWEB) March 08, 2012
The In-Home Senior Care Franchises industry is benefiting from a growing number of aging baby boomers – seniors are now the fastest-growing segment of the population. In the five years to 2012, the number of adults older than 65 grew to 43 million people, up from 38 million in 2007. This number is expected to accelerate in the five years to 2017. As people live longer aided by advancements in technology and medicine, a growing number of seniors is looking to age in their homes and maintain independence for as long as possible. “Franchise establishments that provide medical and nonmedical in-home services allow seniors to do just that,” says IBISWorld industry analyst Andrea Alegria. The high cost of nursing homes and assisted living accommodations, coupled with escalating healthcare costs associated with hospital stays, has also continued to drive growth in demand for industry services. As a result, the industry revenue has grown at an average annual rate of 3.5% to $6.0 billion in the five years to 2012.
The franchise model has gained traction as a way to capture the business of assisting senior citizens who want to remain in their homes. According to Alegria, there are now more than 60 brands selling home healthcare franchises, which lure franchisees with moderate initial investment requirements and strong business support in key areas such as marketing and advertising. Franchise owners benefit from the clout and name recognition of strong national brands, instead of having to build reputations from the ground up as is the case with nonfranchise businesses. The number of In-Home Senior Care Franchises industry enterprises has grown at an average annual rate of 4.0% to 4,009 in the five years to 2012. Still, the industry has experienced an increase in mergers and acquisitions during the past five years due to larger corporations recognizing the opportunity in senior care and the advantages to size in the industry. Major franchise companies include Home Instead Inc., Interim HealthCare Inc. and Comfort Keepers.
Although the industry contracted slightly during the economic downturn, in-home senior care franchising has remained strong. Revenue declined slightly in 2008 and 2009 as disposable income shrunk and more family members cared for senior relatives themselves instead of hiring industry services. Nonetheless, industry revenue has grown each year since and is expected to grow over 2012. In the next five years, the pace of revenue growth will accelerate as demand for services grows. And the number of industry enterprises will also continue to increase over the period as demand for services balloons in line with the senior demographic. For more information, visit IBISWorld’s In-Home Senior Care Franchises report in the US industry page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry includes franchise companies that primarily provide in-home healthcare services to individuals aged 65 and older. These services may be medical or nonmedical and include skilled nursing care, personal care, homemaker and companion services, physical therapy and medical social services.
IBISWorld’s Business Franchise reports provide data and analysis on industries made up of business franchises. Report titles are similar to our NAICS collection titles, but the reports in our Business Franchise collection focus solely on the operation of franchised outlets and exclude non-franchise data. Business Franchise reports show the total number of franchise outlets, total franchise revenue, average profit margin earned by franchisees, as well as key threats, opportunities and costs. Our reports highlight the largest franchisors by market share. Our reports highlight the largest franchisors by market share. The reports are vital for existing or potential franchisees looking to stay ahead of key industry trends and franchisors seeking to strengthen sales and marketing intelligence.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.