Demographic trends have underpinned growing demand for residential senior care franchises.
New York, NY (PRWEB) April 19, 2015
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 for seniors with memory impairment. As a result, IBISWorld expects industry revenue to rise at an annualized rate of 4.1% to $1.9 billion over the five years to 2015.
Demographic trends have underpinned 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 3.4% to 47.8 million people during the five years to 2015. 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 early in the five-year period by the collapse of the housing market,” according to IBISWorld Industry Analyst Dmitry Diment. Many seniors finance the expenses of senior care facilities by selling their houses, so as the anemic residential real estate market shrank the value of many houses during the recession, seniors found it more difficult to pay for industry services. However, with housing prices rebounding during the latter half of the period, industry growth is expected to accelerate in 2015, with revenue forecast to rise 5.8%.
“The franchise model has gained traction as a way to capture demand for residential senior care from an aging population,” says Diment. Instead of having to build reputations from the ground up, as nonfranchise businesses must do, franchise owners benefit from national marketing campaigns and the name recognition of emerging brands. The number of industry franchise establishments has grown at an average annual rate of 2.2% to 1,271 operators in the five years to 2015.
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. However, regulatory challenges are expected to continue to pressure 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.
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IBISWorld industry Report Key Topics
Franchises in this industry primarily provide residential and personal-care services for elderly individuals who are unable to fully care for themselves. Our business franchise reports 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.
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Products & Services
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