The Demographic Dividend: Investing in Healthcare’s Secular Growth Story

Demographic change is reshaping global healthcare demand in ways that are both predictable and profound. The ageing of societies, combined with rising chronic disease prevalence and growing healthcare spending in emerging markets, creates a powerful structural growth story that transcends short-term economic cycles.

A Structural Growth Story

Healthcare is emerging as one of the most resilient and attractive long-term investment themes. The sector is not only shielded by the non-discretionary nature of medical needs but also propelled by an unprecedented demographic transformation. By 2050, the world’s population aged 65 and over will more than double, while the 80+ cohort will triple, leading to a sustained surge in demand for advanced medical treatments, technologies, and services.

Technology as a Catalyst

This thematic update explores how these forces converge with rapid technological progress, particularly the integration of artificial intelligence into medical practice. From enhanced diagnostic accuracy to AI-enabled surgical robotics and accelerated drug development, innovation is amplifying the demographic dividend and reshaping the economics of healthcare delivery.

Leaders in Secular Growth

Our analysis highlights leading companies that exemplify this secular growth story. EssilorLuxottica is transforming vision care into a global health ecosystem; Intuitive Surgical is pioneering robotic surgery with measurable efficiency gains; Stryker is redefining orthopaedic care through robotics and premiumization; Lonza is enabling the biotech revolution through advanced manufacturing; Eli Lilly is delivering transformative therapies in diabetes, obesity, and Alzheimer’s disease; and Boston Scientific is addressing cardiovascular disease with minimally invasive solutions.

Relevance for Today’s Investors

The report also examines why this theme is particularly relevant today. Despite near-term market volatility and political debates around healthcare pricing, valuations have compressed even as long-term fundamentals remain intact. For investors with a multi-decade horizon, this disconnect creates attractive entry points into businesses with sustainable competitive advantages.

An Enduring Secular Opportunity

Ultimately, the demographic and technological forces at play are not cyclical but structural. They provide rare visibility into long-term growth, making healthcare a cornerstone of resilient portfolio construction. Our overweight allocation to the sector reflects conviction in this enduring secular opportunity.

Read the full report here: Secular Trends – Thematic Update Q4 2025