WHY LONGER LIVES SPELL BUSINESS WIN
Longevity is set to become an increasingly important focus for the wellness industry. Helping people to live longer and stay active in later life is proving an ever-more lucrative business niche, as the number of older people in the population swells.
“the longevity business will continue to boom for decades”
In the UK, for example, there are 10 million people alive today who are expected to live to the age of 100, from a total population of 66m. That proportion will increase over time – sustaining a longevity business that will continue to boom for decades. The UK Government’s allocation of £98m from its Industrial Strategy Challenge Fund (ISCF) for healthy ageing – announced in March – will encourage new entrants to join the 170 British companies already operating in the longevity space. Opportunities abound and any company that successfully helps elderly citizens to remain (1) active, (2) productive, (3) independent, and (4) socially connected, is bound to do well.
According to Dmitry Kaminskiy, who just co-authored the Longevity Industry in the UK report: “The one billion retired people globally are a multi-trillion dollar opportunity for business.” One specific area of investment focus is likely to be the harnessing of artificial intelligence (AI) to develop products and services that keep the elderly healthier for longer in their own homes.
Thierry Malleret, Managing partner Well Intelligence
ARE YOUR LEISURE FACILITIES FIT TO PERFORM?
Too many hospitality operators are failing to make the most of their spas, treatment rooms and gyms, and to reap the financial rewards. These areas are frequently regarded as no more than an amenity for paying guests, not worth management’s attention, energy or time. Why? It’s largely down to conditioning. The perception is that these facilities either will not make money or are incapable of doing so. Think again. This segment of your business is certainly not going to perform for you if there is no strategy, defined concept or focus. And you can’t wait for your guests to work out why they should spend more time and money with you. Look objectively at the business potential you have, compared to what your guests, members and locals are looking for, you might surprise yourself. To develop that business you’ll need to look at improved utilisation of assets such as spa space, studios, gym and treatment rooms, alongside optimising the productivity of the people you have in this area.
A recent study we carried out showed that the hotels in question could achieve 16% revenue growth through this approach, or £2million across the group, with no capital investment but simply through optimising existing facilities. Sometimes, untapped profit is hidden in plain sight.
Anni Hood, Managing partner Well Intelligence
COKE THINKS WELLNESS IS THE REAL THING
So Coca Cola says it is “closely watching” the cannabis drinks sector. This acknowledgement from the world’s biggest drinks company follows reports that it is already in talks about producing beverages with ‘health benefits’, using a non-psychoactive version of marijuana.
If you were in any doubt that ‘wellbeing’, as a marketing tool is being embraced by a growing spectrum of industry, look no further.
“pain management has the potential to be a rapid growth market for drinks businesses”
In June Coca-Cola launched a ‘clear’ edition called Coca Cola Clear into the Japanese market; it looks like water but is flavoured with lemon. The company is also moving into coffee, with the £3.9 billion acquisition of Costa Coffee Group.
Its statement on cannabis comes as decriminalisation gathers pace across North America. Pain management through the inclusion of cannabidiol, a non-psychoactive marijuana ingredient, certainly has the potential to be a rapid growth market for drinks businesses.
Why are these moves happening? In short, growth in Coca Cola’s core soft drinks business is slowing. The company’s interest in cannabis-infused drinks and entry into the coffee sector represents a rapid diversification and simultaneous ‘return to roots’ to its long-established namesake. The proliferation of demand for products that positively enhance wellbeing is on the rise in every industry but it cannot only be about perception or marketing spin. It has to be real to be sustainable.
The moral? Make sure that any product development you are pursuing, whether ingestible or experience-driven in the wellbeing realm has a definitive and authentic story to tell.