IBISWorld Market Research
The growing affluence of the elderly will increase expectations for greater choice and higher quality aged-care services.
Melbourne, Australia (PRWEB) March 17, 2014
One of the complexities associated with the ageing of the Australian population is the need for age-appropriate housing. While roughly 5.9 million Australians are aged over 55, less than 7.0% live in retirement villages or residential aged-care facilities. However, with the onset of age-related conditions or fragility comes the growing need for assistance with everyday activities and personal care. According to IBISWorld industry analyst Arna Richardson, “Over the five years through 2013-14, the Accommodation for the Aged industry has continued to expand, offering different lifestyle accommodation options combined with aged-care services.” Over the five years through 2013-14, the industry is expected to grow at an annualised rate of 6.4% to generate revenue of $6.9 billion. In 2013-14, industry revenue is projected to grow by 5.8% on the previous year.
Over the next five years, demographic variables are expected to drive the Accommodation for the Aged industry. Population projections indicate that by 2056, one-in-four Australians will be aged above 65. As the elderly proportion of the population grows, demand for age-appropriate accommodation is expected to increase exponentially. “The growing affluence of the elderly will increase expectations for greater choice and higher quality aged-care services,” says Richardson. The industry operates with a low level of market share concentration.
Industry participants are expected to face considerable challenges over the next five years as they implement and adjust operations in line with recommendations set out by the Federal Government's Living Longer Living Better aged-care reform package. On the revenue side, industry participants will be able to offer a greater variety of user-pay services, covered by extra service fees and higher accommodation payments, thereby generating larger revenue. They may also seek to diversify their product offerings to include home-care packages in line with ‘ageing in place' principles as the government continues to direct funding resources to help elderly Australians to age in their own homes. The Accommodation for the Aged industry is set to become slightly less fragmented, as it continues to consolidate as larger players seek both scale and scope.
For more information, visit IBISWorld’s Accommodation for the Aged report in Australia industry page.
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IBISWorld industry Report Key Topics
The industry consists of establishments that provide long-term care accommodation or homes for senior citizens, where nursing or medical care is not provided as a major service. This includes government-approved residential aged-care accommodation and retirement villages. These can be run by religious or charitable organisations, community-based providers or private for-profit companies.
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