Ageing gracefully: New business models and flexible care options have driven demand

In 2017, approximately 723,000 New Zealanders were over the age of 65 and 85,200 were over the age of 85. In the same year, approximately 32,000 New Zealanders were living in residential aged-care facilities. The Aged Care Residential Services industry has gradually changed over the past five years, as facilities have progressively moved to high-care or hospital level models in line with increased resident acuity levels. While the industry once heavily relied on institutionalised care, a growing number of players have been rolling out more contemporary integrated living options across aged residential care, retirement living and home care...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 15-20
2.6%
Forecast Growth 20-25
x.x%lock
Profit
x.x%lock
Employment
39,081
Businesses
594
Market Share of Companies

Industry Threats & Opportunities

  • The growing prevalence of comorbidity and dementia has led to higher aged-care residency rates
  • Rising land and construction costs have constrained industry establishment growth
  • The number of residents presenting with complex health needs is anticipated to increase

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    Industry Report - Industry Investment Chapter

    The industry has low capital intensity, which reflects the service-based nature of the industry and the high level of personal care provided to residents. In 2019-20, an estimated $15.59 will be spent on wages for every dollar invested in capital. However, this proportion is lower in rest homes. The level of care in rest homes is lower compared with hospital care and dementia units where the residents have a higher degree of functional dependency. Few opportunities are available to use technology to reduce labour costs other than in administrative tasks. A growing number of facilities are trialling electronic care management and electronic medication administration applications to free up time for nurses and caregivers to spend on residents rather than administrative tasks...purchase to read more.

    Additional Insights for the Aged Care Residential Services Industry

    IBISWorld has determined the most important Key Success Factors for the Aged Care Residential Services are:

  • Access to highly skilled workforce
  • Optimum capacity utilisation
  • Economies of scale

    • IBISWorld analysts also discuss how external factors such as Population aged 70 and older and Total government expenditure on aged care services in the Aged Care Residential Services industry impact industry performance..

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    Industry Products

    What is the Aged Care Residential Services in New Zealand Industry?

    Industry operators provide long-term residential care in rest homes, dementia units, psychogeriatric care units and long-stay hospitals for the over 65 age cohort. Operators can also provide short-term residential care including respite care, carer support and Accident Compensation Corporation care. Industry operators include for-profit organisations and not-for-profit entities and charities.

    Industry Products
  • Specialist dementia care
  • Psychogeriatric and other care
  • Rest home care
  • Long-term hospital care
    • Industry Activities
  • Provision of rest home care
  • Provision of long-term hospital care in a residential care setting
  • Provision of dementia care
  • Provision of psychogeriatric care
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Population aged 70 and older
  • Total government expenditure on aged care services
  • Average weekly earnings
  • Capital expenditure on construction

    • Current Performance
  • Government policies
  • Changing demand patterns
  • Supply constraints
  • Chart: Revenue Growth

    • Industry Outlook
  • Demographic drivers
  • Supply variables
  • Table: Aged Care Residential Services Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Aged Care Residential Services Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Consumers in New Zealand

    • Key Selling Industries
  • General Practice Medical Services in New Zealand
  • Hospitals in New Zealand
  • Medical, Surgical and Scientific Equipment Manufacturing in New Zealand
  • Pharmaceutical and Toiletry Goods Wholesaling in New Zealand

    • Products & Services
  • Rest home care
  • Long-term hospital care
  • Specialist dementia care
  • Psychogeriatric and other care
  • Chart: Aged Care Residential Services Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • People aged 85 and over
  • People aged between 75 and 84
  • People aged between 65 and 74
  • People aged 64 and under
  • Chart: Major Market Segmentation for the Aged Care Residential Services Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Aged Care Residential Services

    • Basis of Competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Aged Care Residential Services Industry

    • Industry Globalization

    Major Companies

    Bupa Care Services NZ Limited, Ryman Healthcare Limited, Oceania Healthcare Holdings Limited,
  • Table: Bupa Care Services NZ Limited - financial performance
  • Table: Ryman Healthcare Limited - financial performance
  • Table: Oceania Healthcare Holdings Limited - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Aged Care Residential Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

    • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Aged Care Residential Services Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)
  • Management and Administration (2011-2025)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Extra-Charge Facilities
  • Facilities that offer premium accommodation and extra services that are paid for by residents through additional charges.
    • Psychogeriatric Care
  • High-level residential care for the elderly suffering from behavioural and emotional disorders.
    • Swing Beds
  • Beds in a facility that can be used for either acute care needs or rest home care. Facilities certified at hospital level can use these to alter resident mix in line with demand patterns.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Aged Care Residential Services in New Zealand market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Aged Care Residential Services in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Aged Care Residential Services in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Aged Care Residential Services in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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