The 20^th century witnessed remarkable advancements in medical innovation and living conditions, leading to increased life expectancy worldwide. In 2019, global life expectancy rose to 73 years, up from 67 years in 2000. Now, the focus is increasingly on the quality of life, especially in wealthier economies. According to McKinsey, over US$450 billion was spent on products and services supporting nutrition, hygiene, and fitness in the U.S. alone in 2022, with growth exceeding 5% annually.
 

Improving wellbeing through personal care solutions

1. Oral care
Oral hygiene is crucial for overall health and poor oral health is linked to other diseases. Untreated dental disease affects more than half of the global population, leading to an estimated loss of over US$45 billion in global productivity annually. In the U.S., 34 million school hours and 92 million work hours are lost each year due to unplanned dental care. Colgate-Palmolive, a leading provider of oral care products, addresses this issue by offering a range of affordable and innovative products. Their products are trusted worldwide and can be found in more than half of global households.
 

2. Eye and ear care
Vision and hearing loss can lead to isolation, depression, and cognitive decline, posing public health risks and affecting productivity. In 2019, the global economic cost of hearing loss exceeded US$981 billion, while vision impairment reduced annual global productivity by an estimated US$411 billion. Companies like Amplifon and Alcon are addressing these issues by offering accessible hearing aids and vision correction products. Amplifon, for example, provides interactive apps and virtual care teams, making it easier for consumers to test their hearing at home. Alcon is working to make ophthalmic interventions like cataract surgery accessible, especially in developing countries.

Boosting quality of life through self-care products

Self-care products, including over-the-counter (OTC) medications, supplements, and medical devices offer extensive health benefits without the need for a doctor's visit. These products save an estimated 22 million quality-adjusted life years (QALYs) annually and have the potential to save 39 million QALYs by 2030. A 2022 study found that every US$1 spent on consumer healthcare generates US$7 in future healthcare savings with respect to OTC medicines and doctor visits for minor aliments. Haleon, one of the world's largest makers of OTC medication and vitamin supplements, aims to improve the wellbeing of 50 million people annually through its products by 2025. One of their multivitamin products has been shown to support the cognitive function and memory of older adults in recent academic studies.

Reducing health issues through fitness services. Exercise is essential for maintaining health, reducing stress, and boosting productivity. The global fitness industry has seen sustained growth, with nearly 185 million gym members worldwide in 2020. In the U.S., gym memberships doubled over the two decades preceding the COVID-19 pandemic. Planet Fitness, a leading U.S. gym chain, makes fitness accessible and affordable with low membership fees and digital tools.

Investing in a Healthier Society

The demand for cost-effective health solutions is driven by both top-down structural forces and bottom-up consumer demand. There is a focus on preventions — healthcare providers want to contain costs, while consumers want innovative ways to prioritise fitness and wellness and to take care of themselves and their families.

We believe that the growth opportunities arising from these long-term secular trends can be underestimated by the market. Companies that innovate and improve access to wellbeing products and services have a clear trajectory for growth as society transitions to a healthier and more sustainable model.

NEI Global Corporate Leaders Fund seeks to generate long-term capital growth by investing in companies with strong corporate cultures that are focused on addressing changing demographics and societal needs.

Find out more about NEI Global Corporate Leaders Fund.

About this article

This is a condensed version of an article published by Impax Asset Management in January 2024. You can read the original article in full. Impax is the subadvisor for the NEI Global Corporate Leaders Fund.

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