This report explores the market composition, structure and context of continental Europe’s four largest care home markets: France, Germany, Spain and Italy. Demand for elderly care is expected to rise significantly, as decreasing fertility rates, coupled with increasing overall life expectancy, are driving up the share of elderly in the population. The growing number of elderly will impact on future demand for long-term care (LTC) services. However, while all types of LTC services are set to increase, they will not do so uniformly. Homecare, the preferred service line for most European countries in recent years, will prove to be inefficient given the rising share of patients with specialised medical needs. Additionally, societal changes, including declining family size, increasing childlessness and rising non-traditional living arrangements, mean that care homes will play a crucial role in caring for the increasing elderly population. The report shows that the somewhat restrictive domestic care home market has driven French-based operators towards further expansion abroad and a greater diversification of services. In Germany, while there remains an acute shortage of beds, the market has experienced an increased level of consolidation in recent years, as well as a string of acquisitions by foreign operators and private equity firms. The recent economic revitalisation has brought greater investor interest in Spain while the Italian care home market remains ripe for new development and investment. The relatively small size of the Italian industry, coupled with the considerable level of market fragmentation, means there is substantial room for new entrants and potentially greater consolidation of private and non-profit homes.
(Edited publisher abstract)
This report explores the market composition, structure and context of continental Europe’s four largest care home markets: France, Germany, Spain and Italy. Demand for elderly care is expected to rise significantly, as decreasing fertility rates, coupled with increasing overall life expectancy, are driving up the share of elderly in the population. The growing number of elderly will impact on future demand for long-term care (LTC) services. However, while all types of LTC services are set to increase, they will not do so uniformly. Homecare, the preferred service line for most European countries in recent years, will prove to be inefficient given the rising share of patients with specialised medical needs. Additionally, societal changes, including declining family size, increasing childlessness and rising non-traditional living arrangements, mean that care homes will play a crucial role in caring for the increasing elderly population. The report shows that the somewhat restrictive domestic care home market has driven French-based operators towards further expansion abroad and a greater diversification of services. In Germany, while there remains an acute shortage of beds, the market has experienced an increased level of consolidation in recent years, as well as a string of acquisitions by foreign operators and private equity firms. The recent economic revitalisation has brought greater investor interest in Spain while the Italian care home market remains ripe for new development and investment. The relatively small size of the Italian industry, coupled with the considerable level of market fragmentation, means there is substantial room for new entrants and potentially greater consolidation of private and non-profit homes.
(Edited publisher abstract)
Subject terms:
care homes, social care provision, older people, mixed economy of care, ageing, public sector, voluntary sector, costs, financing;