Summary of Research Findings

As birth rates fall and the population ages, the elderly are becoming an increasingly important customer base every year. This is because obtaining demand from the senior population is the key for the marketing going forward, since this population is considered to have plenty of time and money to spend.
This research has analyzed market trends and extensively studied market player initiatives, focusing on companies that primarily target the elderly and their demand. The research encompasses not only elderly-specific categories, such as long-term care, rehabilitation, and residences for the elderly, but also general categories, such as leisure, sports, and hobbies. It also examines distributor trends.

The senior services market nosedived during the pandemic, but an upward trend became apparent in 2022. By 2023, the market size was estimated to have returned to the pre-Covid level. By that year, social and economic activities fully recovered, causing many senior service markets to grow. In 2024, the market is projected to continue expanding, albeit at a slower pace.
Naturally, however, the recovery status differs by category. Rapidly increasing commodity prices are a growing concern that could affect consumer activities. Some services have experienced an increase in market size due to rising merchandise unit prices and average customer spending, though without return of customers. Since the rise of commodity prices can heavily impact pensioners, it is important to pay attention to senior consumer trends, such as how much unit price increases these customers can tolerate.     

Noteworthy Topics

Despite Rapid Recovery in Senior Services, Seniors’ Consumption Trends Can be Severe

Unlike other senior services, revisions to long-term care fee payments have significantly impacted the long-term care and rehabilitation market. Multiple increases in long-term care fees have led to renewed expansion. In recent years, long-term care insurance systems have shifted toward supporting home care to encourage independence among the elderly. Home visit care, a type of home care service, has grown considerably.
Nevertheless, many companies that entered the long-term care and rehabilitation services industry have withdrawn, been ceased operations, or been acquired by major companies through mergers and acquisitions. The market for long-term care and rehabilitation services is likely to undergo shakeout and reorganization as companies suffer business deterioration due to serious labor shortages, fierce competition with major companies, and rising commodity prices.

The travel market, which was hit hard during the pandemic, is experiencing a swift recovery. This trend is projected to continue through 2024.
The entertainment market overall is showing a sharp recovery, resulting in a market size that exceeds pre-pandemic levels, as behavioral restrictions and facility entry limitations have been lifted. However, cinemas and karaoke room facilities are struggling.

Thus, market recovery conditions and concerns vary by category. Nevertheless, the senior services market has recovered overall to pre-Covid levels. That said, many senior citizens are tightening their belts. This is because of their uncertainty regarding future pension amounts as well as the need to pay for medical and long-term care expenses.
Additionally, vagueness in the economy persists. Since around 2021, rising commodity prices have squeezed seniors’ household budgets. Although approximately 90% of the actual revenues of senior households are from social security benefits, most of these households spend more than they earn. They make ends meet by using their financial assets to supplement pension shortages.

In this context, the impact of rising commodity prices is enormous. It is no surprise that senior citizens are cautious about spending, striving to maintain their standard of living. The elderly are likely to be more selective when choosing merchandise or services. They will ensure that the products and services they choose meet their demand level and sense of value.

Research Outline