The UK care home sector
Following our brand new intelligence report on the UK elderly care sector, we look at the size of the for-profit and public/non-profit sectors.
Both the for-profit and the not-for-profit/public markets shrank between 2019 and 2021 due to the reduction in occupancy during COVID, but as occupancy returns to normal, an uplift in fees are made across the board in 2022 and state-funded fees are increased in 2023 to represent a fair cost of care, we expect to see strong growth. We forecast a 11.3% for-profit rise in 2022 to €20.2bn and then a further 10.1% rise in 2023 to bring the total for-profit forecast to €22.3bn.
Approximately 90.5% of the sector’s size by revenue comes from for-profit providers. It is highly fragmented, with no one provider having more than 5% of the market share.
Rising instances of dementia will be a driver for the future of the market, but care homes remain a last resort.
We would welcome your thoughts on this story. Email your views to Joe Quiruga or call 0207 183 3779.
