According to the Australian Institute of Health and Welfare, there were 3.7 million Australians (15% of the population) aged 65 or over in 2016.
By 2056 the number and proportion of Australians over the age of 65 is expected to grow to 8.7 million or 22% of the population.
While this is only a forecast, most agree the Australian population will look something like that in the next four decades.
Which should put companies with exposure to ageing populations in a strong position to grow over the long-term.
Three which I think could benefit more than most are listed below:
Cochlear Limited (ASX: COH)
As people age their hearing invariably deteriorates. So as the country's ageing population balloons, I believe demand for this hearing solutions company's products will increase meaningfully in the Australian market. Furthermore, the ageing population theme is not limited to Australia. Countries across the world are experiencing similar increases. This is good news for Cochlear as it has an extensive global distribution network and is seen as a global leader in the industry.
Japara Healthcare Ltd (ASX: JHC)
I've been thoroughly underwhelmed with this aged care provider's performance over the last couple of years. And while I'm not expecting an immediate improvement in its performance, I do feel that the long-term tailwinds from Australia's ageing population should make it a winner over the next decade. However, investors will need to be patient and it could be a bumpy ride over the near-term.
Zenitas Healthcare Ltd (ASX: ZNT)
Zenitas Healthcare is a home care and health services company which I expect to benefit from Australia's ageing population. Not everyone wants to live in an aged care home and many will wish to stay in the comfort of their own home as long as they can. This is where I see Zenitas and its home care business profiting. Especially after the recent Federal budget pledged $1.6 billion over four years for 14,000 people to stay in their homes rather than move into nursing homes.