The size of the care economy is bigger than the U.S. pharmaceutical industry, and larger than the U.S. hotel, car manufacturing and social networking industries combined. That is according to a new report from The Holding Company, a creative lab that partners with innovators to build solutions to care, and Pivotal Ventures, an investment and incubation company.
“The Investor’s Guide to the Care Economy: Four Dynamic Areas of Growth” pegged the care economy at $648 billion, making it $138 billion weightier than the U.S. pharmaceutical industry. The report identified four key market engines spurring expansion: aging-in-place, household management, child care and employer benefits. The report was compiled between December 2020 and June 2021.
The aging-in-place market totals $151 billion, the report said. As of 2019, it was expected to grow at a compound annual growth rate of 13%, with meals, home and personal care being the largest segments. The report identified two key drivers: 1) insurers who are enabling independence for aging adults and 2) emerging solutions that facilitate shared decision-making between aging adults and their children, such as care coordination apps or safety monitoring tech.
“The care economy offers investors, entrepreneurs and businesses a treasure trove of untapped opportunities for innovation,” said Patrice Martin, co-founder and CEO, The Holding Co. “Coming out of the pandemic, American families are fed up and demanding the kinds of products and services that will allow them to thrive like never before.”
