Summary of our market study

The global skilled nursing facility market has experienced growth, with its value rising from $315.52 billion in 2021 to an estimated $362.2 billion in 2023. It is projected to reach $592.10 billion by 2030, growing at a CAGR of 7.2% from 2021 to 2030. Skilled nursing facilities (SNFs) and nursing homes are the key segments in this market, providing specialized staff and 24/7 care with SNFs focusing on short- to medium-term care and nursing homes on long-term care.

The demand for such services is driven by an aging global population, which constitutes 8.5% of the population and is expected to hit 2 billion by 2050. Chronic diseases like heart problems, Alzheimer's disease, cancer, diabetes, and dementia also contribute to the growth. Geographically, North America leads the market with a revenue share of 49.27% in 2022, followed by the rapidly growing Asia Pacific and Latin America regions, while the Middle East and Africa have underdeveloped markets due to inadequate facilities and policies.

Trends in the UK Elderly Care Market

The UK elderly care market has been shaped by several significant trends, which are expected to continue driving demand for both residential and nursing facilities. The market is heavily influenced by demographic shifts, particularly an aging population that requires an increasing level of long-term care. The elderly population in the UK, defined as those aged 65 years and older, is substantial, ranging between 10 and 15 million individuals, which accounts for nearly 20% of the national population. Of this number, a sizeable proportion, between 25 and 30%, is expected to be dependent on some form of elderly care. As the population ages, the demand for skilled nursing facilities and nursing homes continues to rise. Skilled nursing facilities, designed for short- to medium-term care, coexist with nursing homes that offer long-term care solutions. The other side of the market consists of residential care homes, offering a lower level of day and night care without the medical provisions found in nursing homes.

The market for these residential options has witnessed an annual growth of about 1%, with projections suggesting continued expansion owing to the escalating elderly population. Financially, the market for elderly care facilities in the UK represents a multi-billion pound industry, with estimates placing it around £7 billion. This sizeable market continues to face numerous challenges, including recruitment difficulties, operational cost increases, and a shortfall in the creation of new care facilities. The procurement and prescription of medicines within these facilities are managed systematically, with care home staff coordinating with residents' GPs to ensure appropriate medication and care provision.

The UK elderly care market is quite fragmented, with small and medium-sized providers dominating the landscape. Despite this fragmentation, a few large providers account for a substantial share of care home beds, yet no single provider alone represents an overwhelming majority. It's noteworthy that in the year 2021, about one third of care home residents were self-financing, contrasted with a larger proportion dependent on local council support. Nationally, spending on public health is vigorous, with the UK allocating a notable portion of its GDP to this sector, indicative of the crucial nature of health services to the economy. In terms of care home occupancy, the sector has faced fluctuations due to events such as the COVID-19 pandemic, with reductions seen from previous levels of around 89% occupancy to approximately 80%. From a regulatory perspective, entities like the Care Quality Commission in England and others in Scotland, Wales, and Northern Ireland oversee the standards and quality of care provided.

Leading Figures in the UK Care Home Industry

As the demographics shift towards an aging population, the care home industry in the United Kingdom has become a pivotal sector in healthcare. Among the vanguard of this industry are several key players that have established themselves with significant market presence and impact. These organizations have risen to prominence by offering a blend of specialized services to cater to the diverse needs of the elderly population, often setting standards for care and excellence within the sector.

HC-One Limited takes a leading role as a major provider in the UK care home market. It has established itself through a vast network of care homes across the country, often lauded for their compassionate and individualized care. HC-One's contribution to elderly care encompasses not only attention to the health and wellbeing of their residents but also extends to creating a nurturing environment for social interaction and a sense of community.
Barchester Healthcare Limited is another titan in the industry, known for its high standards of care and upscale facilities. They provide a luxurious living experience for seniors, with amenities and services that cater to the comfort and well-being of their residents. Barchester Healthcare's commitment to care quality and service excellence has made them a preferred choice for those seeking a superior residential or nursing care experience. Both HC-One and Barchester Healthcare exhibit a keen understanding of the shifting needs within the care home sector, consistently adapting their services and facilities to provide optimal care. As critical players, they contribute not only by serving the needs of current generations but also by shaping the future of care home standards in the UK.

These organizations embody the strength and commitment required to serve the complex and growing demands of the aging population. They are exemplary in their individual approaches to care, reflecting the industry's ability to evolve and cater to varying preferences and care requirements. As the sector continues to expand, entities like HC-One and Barchester Healthcare will likely keep playing a significant role in defining the landscape of elderly care in the United Kingdom.

The nursing home market - UK

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Last update : 17/04/2023

Summary and extracts

1 Synthèse du marché

1.1 Definition of the market

Geriatric care is long-term residential care for the elderly, i.e. people aged 65 or older. From one hand, such care is often provided in facilities, where the elderly do not need 24-hour care, but remain unable to live independently, such as assisted living facilities. Their main characteristics are:

the offer of rooms already provided or not.
house cleaning services, laundry and meals
assistance with daily activities (personal hygiene, dressing, eating, and walking)
They are not medical facilities

On the other hand, geriatric care can also be offered in residential care homes and nursing homes for people who need continuous care and help with daily activities. The nursing home is often a permanent residence for a person who cannot take care of themselves, but is not ill enough to need hospitalization [seniorliving]. Both nursing homes and residential care homes provide care and support 24 hours a day, however the main difference is that a nursing home is able to provide a higher level of care [carehome].

In the United Kingdom, the care market for residential care homes and nursing homes is expected to grow by 1% annually, driven by the aging population and the increase in elderly dependency. In 2032, it's expected there will be 13 million people aged 65+, representing 22% of the UK total population.

However, with supply outstripping demand, the market has been characterized for several years by significant challenges. In particular, the slowdown in the creation of new facilities and, lack of financing and recruitment difficulties are central issues.

The UK market is fragmented, with few providers that hold only 15% of all care home beds, while the top 25 account for 31% [Marketbeat]. It means that the care home market is the prevalence of small and medium-sized providers. Moreover, the local authority funding is the first form of revenues of the providers, followed by private payments.

2 Analyse de la demande

3 Structure du marché

4 Analyse de l'offre

5 Règlementation

6 Positionnement des acteurs

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