Why you should start investing in products targeting old people

Soon Kenya will have many old people who are wealthy. FILE 

By Edward Omete

Reports indicating that Japan’s adult diaper market has surpassed the babies market was an eye-opening statistic as far as the world population goes.

The same may not be said about Kenya or many other African countries since we are still having a baby boom and a population demographic skewed to more young people than the elderly.

However, the fact that even locally the average life span has gradually risen means that demand for such products and associated services shall also be high. The probability that you will live to be more than 70 years is very real. This is a rise from the previous average of 57 years.

Another fact in support of this observation is the indicator that more than 45 per cent of the population is in their fourth decade or above. Likewise it is also a fact that in the next 15 years, the elderly would account for a considerable chunk of our population.

In the diaper statistic given for Japan, the bigger picture is that social and medical support services for this group would create a significant market size for entrepreneurs. Closer home, a similar interpretation may start to be drawn for our elderly population soon.

In a recent discussion about the various possible medical opportunities each holds, a few issues came up.

The first one being that as subspecialty geriatrics or the study of ageing and associated conditions is a virgin ground. Secondly, while many Kenyans toil for their wealth in the youth, few are prepared for the eventualities of ageing.

The sad fact of life is that with age and decline in body strength, a reduction in mental faculties you will spend a considerable amount of your time and money in a health institution.

The third observation is that more young people are living away from home, leaving their parents alone. The East African Community and future mergers of bigger trading blocs will mean that many young people may labour far away from their elderly parents.

Finally, it is also true that in old age many insurers wouldn’t touch you with a pole because they are unlikely to make any money out of doing business with you.

For instance, a typical elderly patient may suffer from chronic heart disease, have joint problems warranting hip replacement, failing vision requiring eye surgery amongst other health conditions.

Some entrepreneurs have specialised in a particular age group. Thus while we have children’s hospitals, women’s hospitals, no entrepreneurs have attempted to run an exclusive facility for the elderly. One of the discussants in the meeting asked whether the elderly would afford such services.

This was an important question because the availability of a service without capable consumers is itself a bad business.

The statistics are also in favour of a sizable pool that can afford these services. Presently, the average urban middle class elderly person is typically wealthier than the parents were at a similar age. The number of millionaires is also typically stacked in the sixth decade.

This could be a target group for such investments. Those not able to afford should start getting convinced on “preparation” for elderly age.