Healthcare's 2025 Stock Crash Could be a 2030 Windfall Amid Rising Demand for Senior Care and Healthcare Services

The healthcare sector is currently underperforming in 2025 due to regulatory stress and trade tensions. However, a demographic shift in the US population, with the number of working-age adults to retirees declining, is expected to drive demand for healthcare services, senior housing, and chronic care in the long term. This presents a contrarian investment opportunity, with specialized healthcare real estate and insurance businesses serving older Americans poised to benefit.

The healthcare sector has been underperforming in 2025 due to regulatory stress and trade tensions, leading to a challenging environment for investors. However, a demographic shift in the United States presents a contrarian investment opportunity. The declining ratio of working-age adults to retirees is expected to drive demand for healthcare services, senior housing, and chronic care in the long term. This trend favors specialized healthcare real estate and insurance businesses that cater to older Americans.

A recent study suggests that GLP-1 drugs, such as tirzepatide, may have potential beyond diabetes and weight loss. A study presented at the Endocrine Society's annual meeting found that GLP-1 agonists could reduce the size of breast cancer tumors in mice [1]. While these results are preliminary and years of human studies are needed, they indicate a potential new indication for these drugs, which could significantly boost sales for Eli Lilly, the drugmaker behind Zepbound and Mounjaro.

Moreover, the gerontology market is expected to grow substantially, driven by aging demographics and supportive policy reforms. According to SNS Insider, the U.S. gerontology market is projected to reach USD 870 million by 2032, expanding at a compound annual growth rate (CAGR) of 7.83% during the forecast period of 2024-2032 [2]. This growth is fueled by technological advancements, increased demand for specialized services, and strong policy support.

While the short-term outlook for the healthcare sector may be challenging, the long-term prospects are promising. Specialized healthcare real estate and insurance businesses, as well as companies like Eli Lilly, are well-positioned to benefit from the demographic shift and potential new indications for existing drugs.

References:
[1] https://www.nasdaq.com/articles/could-glp-1-drugs-potentially-help-treat-cancer-1-promising-study-suggests-they-might
[2] https://finance.yahoo.com/news/gerontology-market-set-reach-usd-123600860.html