According to analysts, Americans over the age of 75 are expected to make up 10% of the population, according to analysts. Meanwhile, cohort spending is expected to increase by more than $1 trillion over the next five years.
The stock market has brewed $1 trillion opportunities. It’s not artificial intelligence, it’s a different kind of AI.
The “aging intelligence” trend was flagged this week by Mizuho’s US team. Japanese banks say they expect a significant outcome from the aging population in the United States.
Specifically, older people will earn a large portion of the total consumer spending. This is an important theme for investors to take advantage of, Mizho said in the report.
“Major opportunities – seniors are becoming a bigger part of the consumer spending pie, representing 1T opportunities,” the analyst wrote. “Essentially, spending with a cohort of 75 or more grows at twice the US average.”
The number of Americans, more than 75, is expected to increase by 4% each year, and Mizuho estimates it will be on track to account for 10% of the total population by 2030.
Americans over the age of 75 are expected to make up one-tenth of the US population by 2030. Mizuho/Organization for Economic Cooperation and Development/MSUSA
Expenditures by consumers over the age of 75 increased by 87% from 2023 to 2030, up over $1.3 trillion over that time frame. By 2035, cohort spending could increase by $2.2 trillion, analysts said.
Americans over the age of 75 are on track to see a pace of about twice the average spending growth by the end of the decade. Mizuho/Law Bureau Statistics Bureau/MSUSA
“We consider the tsunami (aging the US population) an undervalued trend,” the bank added. “Corporate America still needs to focus on this shift, and AI (aging intelligence) will become a differentiator.”
The bank said it has identified spending categories that are likely to be “winners” in older population trade.
Mizuho/Law Bureau Statistics Bureau/MSUSA Research
Drugs are about to achieve the biggest growth in the next five years, and analysts estimate that spending on the category could skyrocket 2.5% year-on-year.
Insurance, hospitals and medical devices were also in the “winning” category in terms of consumer spending, Mizuho said he expects a larger population of older Americans to drive greater demand in the coming years.
Analysts highlighted the 10 companies they thought could benefit from an increase in population trade. The stocks together could potentially have an average rise of 35% over the next 12 months, the company said.
The top stock pick for analysts is to take advantage of trading.
Biogen Inc.
Ticker: biib
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