With populations in large economies quickly aging, demand for healthcare is set to rise rapidly over the coming decades. By 2050, one in six people worldwide will be 65 or older — an age cohort that typically spends three times as much on medical services than younger generations and a pattern that stands in contrast to other consumption categories that tend to decline as people age.

While the healthcare sector overall could benefit from graying populations, some of the biggest growth opportunities could occur in the innovations that target age-related conditions (i.e., Alzheimer’s, cardiovascular disease, cancer and orthopedics). In our view, focusing on these growth areas — and the small and mid-size companies driving the innovation within each — could help investors make the most of the demographic tailwind in healthcare.

SMALL/MIDCAP LEAD INNOVATION

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