Is Your Business Prepared for An Aging Population?
Growth | Business Strategies | September 2025
Content we will read:
Aging Population | Business Development | Elderly Customers
Reading time: 5 minutes
Is Your Business Prepared for An Aging Population?
According to the latest UN reports, two-thirds of the global population live in countries with below-replacement fertility rates, while average lifespans continue to grow. This means that many populations are rapidly aging, and will soon begin to shrink (if they haven’t already). At the start of this century, 32 countries had a median age above 35 years. By the end of this decade, that number will more than double. And in 25 of those countries, half the population will be more than 45 years old.
In many respects, we may think of the future as uncertain. But unlike so many technological, political, and economic shifts, demographic trends are extremely predictable. Our aging population is all but inevitable — and it will have a substantial impact on global labor pools, markets, and the future of work, with several important implications for business leaders:
Our aging population is all but inevitable — and it will have a substantial impact on global labor pools, markets, and the future of work, with several important implications for business leaders.
1 . An Aging Workforce
Due to falling fertility rates, countries such as China, Canada, Italy, and many more now have fewer new entrants into the workforce every year. As a result, companies are increasingly finding themselves asking older employees to stay on longer. This will necessitate growing investment into training and development to help these older workers acquire new skills, as well as into additional accessibility and safety measures such as wearable exoskeletons to help older workers safely lift heavy loads on farms and in factories.
In addition, as new, younger talent becomes harder to find, many companies are turning to automation to replace or augment certain roles. A slew of companies have begun developing “digital workforce” tools that offer fully virtual sales associates, customer service representatives, and even companions for the elderly. Between growth in AI capabilities and shifting demographic trends, these new technologies have the potential to become an increasingly substantial component of the modern workforce.
2 . An Aging Customer Base
Over the last decade, the global 70 + population grew by 627 million, from 5% of the total population up to 12%. In another decade, 16% of the eight billion people on earth will be over 70 . That means tremendous opportunities for products and services that serve this older demographic. The potential for forward-thinking companies goes beyond just an interesting business opportunity. Older adults are poised to shape consumer and capital markets in the years ahead. The McKinsey Global Institute concludes that the 60 -plus population, one of the few engines of global economic growth, is on track to generate half of all urban consumption growth between 2015 and 2030.
The most obvious sector for growth is health care, where demand for geriatric medicines, primary and specialist care, and related products, such as wearable glucometers or electrocardiograms, is set to continue to expand. While life expectancy has risen, in many places, healthy life expectancy lags, meaning that finding ways to support the health and wellbeing of this growing demographic isn’t just a business opportunity — it will be critical for policymakers and government leaders as well.
Research reveals that older adults dominate spending in 119 of 123 consumer packaged goods categories, spend more in grocery stores and purchase more new cars than any other age group, and account for 80% of luxury travel. The demographic is eager to spend on transportation, entertainment, food, and alcohol, representing an immense target market for fresh ideas and innovations.
Beyond health care and businesses with a particular focus on seniors, aging customer bases may also have implications for a wide variety of industries. For example, in real estate, aging homeowners may look to downsize, or adult children may look to buy homes with room to house aging parents. Find more about How private investment can improve senior-housing options by reading this blog.
The financial services industry has always catered to older people — primarily those planning for retirement. As customers and clients prepare for longer lives, retirement remains a powerful growth driver. But a financial market for older workers and entrepreneurs is rapidly expanding too. Driven by financial assets controlled by older investors, this segment of the longevity market simply cannot be ignored. People age 60 and over hold the majority of wealth worldwide.
3 . Shifting Retirement Norms
When it comes to retirement norms, expectations around how long workers expect to stay on the job don’t necessarily correspond with lifespans. For example, purely based on age, Japan is the world’s oldest country, with 31% of its population 65 or older. In contrast, only 22% of the French population is 65 or older. As such, one might expect that a greater proportion of Japan’s population would be in retirement — but in fact, a combination of differences in work cultures, social contracts between governments and their citizens, and a host of rules and policies mean that the average retirement age in France is 10 years younger than in Japan: 61 years old versus 71. As a result, around 29% of France’s workforce has effectively retired, compared to just 24% of Japan’s.
For instance, many older workers who are not yet ready to retire have begun demonstrating increasing interest in semi-retirement. In a recent survey of working Baby Boomers, the vast majority said they’d like to pursue some form of semi-retirement, with 79% expressing interest in a flexible work schedule, 66% in transitioning to a consulting role, and 59% in working reduced hours. But just one in five said their employer offered any of these semi-retirement options, suggesting substantial opportunity for employers to differentiate themselves in the competition for talent by offering non-traditional career paths.
4 . Shifting Global Markets
Finally, it’s important to recognize that our common assumptions around different countries’ demographic makeups may be out of date. At the turn of the century, countries such as Japan, Italy, and Germany were among the world’s oldest populations — but today, Thailand and Cuba are just as old, with Iran, Kuwait, Vietnam, and Chile close behind. In a decade, we can expect smaller cohorts of young people in these countries to begin to enter the market as workers and as customers, thus increasing the average age of these populations.
These are critical considerations when identifying new markets for investment. Different countries will respond differently to these shifts, and business leaders would be wise to pay attention not just to the demographic trends of a given market, but to how its leaders are likely to react to them. A country’s approach to managing its aging population can influence its potential as a talent pool or customer base in substantial and nuanced ways.
For most companies, longevity marketing is still in its early days. That must change. You need a strategy for older consumers, and identifying new opportunities and markets is just the first step. You and your employees also need to reconsider what you “know” about this population to avoid ageist and outdated messaging. Incorporate older employees into product planning, design, and communications to benefit from their experience and understanding. Use focus groups that include older participants to test products and services before they make it to market.
A country’s approach to managing its aging population can influence its potential as a talent pool or customer base in substantial and nuanced ways.
The Future Is Clear
Today’s business leaders and policymakers face countless sources of uncertainty. But The reality of our globally aging population is evident now, as once a population’s fertility rate goes below replacement level (an average of two children per woman), it stays there. Finally, as longevity strategies are developed and implemented, companies must consider not only how their products and services are designed but also how they are promoted. The power of media and advertising should be used to reflect realistic images of older adults instead of stereotypes. Older consumers do not want to be patronized, but they do want their needs acknowledged, and companies can do this while emphasizing both positive and real aspects of aging.
We’re still in the early stages of understanding what older consumers’ needs are and how to address them. The aging population is diverse, and the answers are not simple; one size certainly does not fit all. But we do know that there’s already a clear demand for products and services that can help people live longer, more-comfortable, and more-meaningful lives — and that are promoted without stigma or stereotype. This demand will grow rapidly in the coming decades, and companies that start meeting it now can reap a sizable dividend. It’s a huge opportunity, one that will have benefits both to their bottom lines and to society.
Sources used for this content:
Harvard Business Review
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