An improving economic environment and the aging population will drive growth.
New York, NY (PRWEB) July 24, 2014
The Residential Senior Care Franchises industry has experienced strong growth during the past five years. The industry, which provides residential and personal-care services for elderly individuals who are unable to fully care for themselves, has boomed on account of the aging population and the growing need for dementia care provided for seniors with memory impairment. As a result, IBISWorld expects industry revenue to rise at an annualized rate of 3.2% to $1.7 billion over the five years to 2014.
Demographic trends have underscored a growing demand for residential senior care franchises, with the number of adults aged 65 and older forecast to increase at an average annual rate of 3.1% to 46.2 million people during the five years to 2014. According to IBISWorld Industry Analyst Dmitry Diment, “Because elderly individuals are generally more prone to injury and illness, they require more assistance with daily activities, driving their dependence on industry services.” However, the industry's expansion was impeded by the collapse of the housing market early in the period. As many seniors finance the expenses of senior care facilities by selling their houses, the anemic state of the residential real estate market during the recession shrank the value of many houses, making it more difficult for seniors to sell their homes to pay for industry services. However, with housing prices rebounding during the latter half of the period, industry growth is expected to accelerate in 2014, with revenue forecast to rise 4.7%.
The franchise model has gained traction as a way to capture demand for residential senior care from an aging population. Instead of having to build reputations from the ground up, as is the case with nonfranchise businesses, franchise owners benefit from the name recognition of emerging brands and national marketing campaigns. The number of franchise establishments has grown at an average annual rate of 2.2% to 1,200 companies in the five years to 2014.
“Industry growth is expected to accelerate over the next five years, driven by an improving economic environment and the continued aging of the population, which will expand the industry's markets,” says Diment. Consequently, IBISWorld expects industry revenue will rise over the five years to 2019. However, regulatory challenges are expected to continue to undermine industry profitability, as healthcare reform incentivizes the transition to at-home managed care, and Medicare and Medicaid reimbursement rates decline over the next five years.
For more information, visit IBISWorld’s Residential Senior Care Franchises in the US industry report 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
Franchises in the Senior Care Franchises industry primarily provide residential and personal-care services for elderly individuals who are unable to fully care for themselves. Reports in our Business Franchise collection focus solely on the operation of franchised outlets and exclude non-franchise data. They show the total number of franchise outlets, total franchise revenue and the average profit margin earned by franchisees. Our reports also highlight the largest franchisors by market share.
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.