The longevity economy is booming as people live longer

It turns out there is money to be made in the business of extending lifespans, and this so-called “longevity economy” has become a flourishing part of the financial system. While people have often been looking for ways to live longer, recent health advancements alongside shifting demographics mean people are investing in the longevity economy like never before. This market is already making trillions of dollars, and it doesn’t appear to be slowing down.

How much money is in the ‘longevity economy’?

There are currently trillions of dollars flowing into the longevity economy. In 2020, just as the Covid-19 pandemic was surging, the longevity sector was valued at $15 trillion globally, according to market research from Data Bridge. It has been growing at a steady rate each year and is expected to be valued at $27 trillion by 2030 (though other analyses have the longevity economy possibly reaching this mark by 2026).

This is due to a number of factors, most notably a shift “toward health span — the years we spend in peak physical and mental condition,” said Entrepreneur. Customer demand also plays a large role, as by 2034 the “U.S. will have more people over 65 than 18,” and one in six people globally will be over 60 by 2030. This is “not just demographics — that’s a new consumer majority.” Increasing health care costs are also factoring into the money being pumped into the economy, as “chronic diseases and mental health conditions already account for 90% of U.S. health care spending.”

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What other factors make up the longevity economy?

There may be more to the longevity economy than many people realize. As “elders live longer and healthier lives and continue to actively participate in the global economy, possibilities open to potentially turn longevity into an asset for society,” said BBC News. In the U.S., it is estimated that by 2030, people over 55 “will have accounted for half of all domestic consumer spending growth since the global financial crisis.” In Japan this figure will be 67% while in Germany it will be 86%.

Demographics are also playing a large role. For the first time in history, the longevity economy “includes four generations of age 50 and older: the GI Generation (1901-1926); the Silent Generation (1927-1945); the Baby Boomers (1946-1964) and Generation X (1965-1980),” said the Los Angeles Daily News. But even though “populations may be aging in significant numbers, we can’t let the idea of ‘oldness’ and its implications stifle the way we think about economic opportunity,” Dr. Joseph Coughlin, the director of the Massachusetts Institute of Technology’s AgeLab, said to BBC News.

Even though “millennial demands are linked to the rise of the on-demand economy, older adults benefit immensely from its convenience,” Coughlin told BBC News. This has resulted in a slew of products and services surrounding the longevity economy. Most notable are tech entrepreneurs like Bryan Johnson, who is at the “forefront of the movement looking for new ways to reverse aging and extend health span, and live to age 150,” said Fortune. Also emerging are the inventions of technologies like wearable aging clocks and other devices designed to keep you younger longer.