Rise in global healthcare spending

Spending on healthcare is rising globally alongside a growing and aging population, and increased urbanization and affluence.¹ Healthcare spending in the United States grew by almost 10% in 2020 to $4.1 trillion and a further 2.7% in 2021 to $4.3 trillion.² With a larger population, we can expect a higher demand for medical services across both ends of the economic spectrum. The rise in wealthy urban dwellers may result in amplified health risks, while those who live in rural areas are often underserved with limited access to advanced medical care. Certain investment opportunities can address this growing demand and shrink the gap for healthcare access.

By 2028, it is expected that 20% of the U.S. GDP will be spent on healthcare costs.³ Interestingly, some of the biggest supporters for cost-effective healthcare innovations and preventative measures are the corporations, national health system and insurers that shoulder a large part of the final bill. At the same time, consumers are growing more aware and invested in preventative healthcare and wellness.

​Among the many breakthroughs in healthcare science and technology are telehealth, precision healthcare (a result of human genome mapping) and health provider software. As virtual communication capabilities improve and demand for equitable and quality healthcare grows, investors may want to take note.

Investing for global food security and healthy lifestyles

Approximately 2.3 billion people experience food insecurity globally.⁷

Concurrently, inadequate physical activity and increased consumption of processed foods have made obesity a concerning trend.⁸ In addition to obesity, other lifestyle-related factors, including smoking, poor diet, hypertension and lack of physical activity, contribute to many of the top 10 global causes of death.⁹

Companies and investors can play important roles by seeking to fill the void in nutrition and healthy living. For example, the number of wellness apps provided by corporations via smartphones has been increasing, with the number of worldwide installs exceeding 200 million for the first time in April 2020, and the market size of global health and wellness apps was estimated to be $1.6 billion in 2021.¹⁰

We can help

If you would like to explore sustainable investing opportunities in private equity, speak to your J.P. Morgan team to determine which strategies would be the most appropriate to help you meet your long-term financial goals.

¹2020 Healthcare Outlook, Deloitte, 2020.

²Centers for Medicare & Medicaid Services, National Health Expenditures, 2021.

³Linking Changes in Inequality in Life Expectancy and Mortality: Evidence from Denmark and the United States, National Bureau of Economic Research, 2020.

⁴ World Bank, OECD.​

⁵ Linking Changes in Inequality in Life Expectancy and Mortality: Evidence from Denmark and the United States, National Bureau of Economic Research, 2020.

⁶ Food and Agriculture Organization of the United Nations (FAO), “The State of Food Security and Nutrition (SOFI) in the World Today”, 2022.​

⁷ Food and Agriculture Organization of the United Nations (FAO), “The State of Food Security and Nutrition (SOFI) in the World Today”, 2022.​

⁸ Linking Changes in Inequality in Life Expectancy and Mortality: Evidence from Denmark and the United States, National Bureau of Economic Research, 2020.

⁹ 2020 Healthcare Outlook, Deloitte, 2020.

¹⁰ Sensor Tower, Mobile wellness market trends: Key trends in the global mobile wellness space and projections for 2021, 2021.