High-Growth Sectors in Latin America: How Demographic Change is Redefining Goods and Services
A growing number of companies and organizations across Latin America are expanding the range of services they offer or pivoting their business models to better serve the region’s changing demographics. Increasingly, goods and services are demanded by an aging population, making the silver economy one of the most promising high-growth sectors in Latin America.
Latin America’s Silver Economy
In Latin America, goods, services, and solutions that target the population of adults 60 years or older are commonly known as the “silver economy.” A mapping study by the Inter-American Development Bank (IDB) identified at least 245 actors spread across 24 countries developing initiatives and solutions in sectors such as:
- Health and long-term care
- Housing
- Digitalization
- Employment
The study from IDB says that this segment, which has grown considerably since the pre-pandemic years of 2020, has the potential to become “an opportunity for innovation and business development that will generate jobs and income while contributing goods and services that improve quality of life and well-being for older adults.”
Approximately 90% of these actors only operate in their home country, a detail that suggests how scaling companies that have found success in their local markets can be just as challenging as meeting the demand of growing in-market consumers.
“At the start of a new decade, it is clear that the silver economy not only allows us to meet the demand of this population group. With well-planned public policies, it is possible to leverage this sector’s growth to benefit society as a whole,”- IDB.
Sector Breakdown & Who’s Who
40% of actors identified in the IDB were concentrated in the Health sector, specifically long-term care and elderly care services. This can be both a reflection of the number of small providers within the market, as well as seniors not yet being as engaged within Latin America’s consumption, investment, and job markets compared to other sectors of the population.
Interesting data points about the silver economy:
- 3 out of 4 organizations work for profit
- 20 startups
- 98 SMEs
- 29 large companies
NGOs, foundations, universities, government institutions, and associations are also present, creating a hybrid network of public and private stakeholders looking to meet the demands of the region’s silver economy. These stakeholders show just how much the silver economy has grown from fragmented care options to a holistic network impacting goods and services offered throughout Latin America.
Highlighted sectors and companies include:
- Digital health solutions
- Senior housing
- Job and professional integration platforms
- Financial products
- Services specifically designed for older adults
- Government institutions coordinating policies
Health: Prevention and Chronic Illness
RAFAM International (Argentina) developed care programs that specialize in sports, active aging, and healthy aging programs for adults and seniors. RAFAM works with partners across 14 countries.
Diabetes and retinopathy prevention
TeleDx is a Chilean startup that creates automated retinography diagnostics using artificial intelligence. Their solution has been nationally deployed as a standard public health solution. TeleDX’s solution allows for scalable diabetic retinopathy screenings for patients.
Home care services
Bonanza Asistencia provides home care services and has become the gold-standard in Costa Rica with over 8,000 adults over age 60 in their care in recent years.
Senior real estate & nuda propiedad
NudaProp focuses on “nuda propiedad” in Uruguay. Or in English, when seniors sell their property but retain the usufruct for the rest of their lives.
Senior employment: Connections and platforms
Maturi Brazil’s leading employment network for professionals over 50. They’ve connected close to 140,000 workers with jobs and training.
Contraticos is similar to Maturi but based out of Costa Rica, providing professional reintegration services in various sectors.
Someone Somewhere is bridging the gap between older women in Mexico’s indigenous community and dignified work. Through the creation and sale of textiles, Someone Somewhere has provided tools for economic empowerment.
CONAPE is a leader in institutional solutions. This Dominican Republic-based institution, known as CONAPE (Spanish for Council for the Elderly), is the National Council for the Elderly and works to develop policies and programs focused on inclusion and protection for older adults.
Silver economy in digital transformation
Latin American markets and entrepreneurs are developing organizations and programs centered around technology and digital inclusion for silver economy consumers.
Digital Tablet Distribution
Plan Ibirapitá — with over 230,000 tablet giveaways to older adults — is another prime example of technology providing seniors with access to bilingual digital literacy courses at no cost.
Senior Oriented E-Commerce Portal
Canitas was founded in Mexico by serial entrepreneur Joaquín Suárez. Canitas serves as a one-stop-shop for providers offering healthcare, entertainment, service, and leisure goods to seniors and their families. “We want Canitas to become the national and continental benchmark in the sector,” says Suárez. Canitas will play a central role in our research by connecting us to startups, organizations, and business owners operating in the silver economy.
Education & empowerment
Fundación Saldarriaga Concha was founded in Colombia. Fundación Saldarriaga Concha creates opportunities for education, well-being, and income generation for vulnerable groups focused on autonomy and empowering citizens to advocate for public policies that improve the lives of older adults.
Silver Economy Trends in Latin America
The IDB shares the following trends about Latin America’s silver economy:
- Private investment: Most capital for businesses within the silver economy comes from domestic private investment, not international markets.
- Low internationalization: Few companies have been able to scale out of their home countries, suggesting high growth potential for companies that can expand — a clear indicator of high-growth sectors in Latin America.
- Slow legislation: Healthcare, job market, and housing legislation is very complex in Latin America, preventing the silver economy from growing at faster rates.
- Digital & gender inclusivity: As the silver economy grows, there is a greater focus on developing programs for women, who statistically still shoulder the largest burden of unpaid caregiving work.
The silver economy as an economic opportunity
Besides providing services that are increasingly in demand, by 2030, newly considered adults 60 and over will modify how goods and services are purchased in Latin America. Representing an opportunity for companies to serve this new market by:
- Creating training programs for professional caregivers
- Developing senior-focused financial products (i.e., Savings, Insurance, Investments)
- Helping transform the Latin American housing market
- Bridging stakeholders between startups, universities, and government entities to scale ideas and solutions
Latin America Goods and Services
Over the next decade, companies and institutions within Latin America will be forced to consider how goods and services can accommodate the region’s fastest-growing market. By diversifying their service offerings and creating sustainable business models that consider a silver-aged consumer, they can become a market leader within:
- Healthcare
- Financial services
- Housing
- And more
By putting measures in place to prepare for Latin America’s demographic shift, companies can be part of one of the region’s highest-growth industries in the coming years, firmly establishing themselves among the high-growth sectors in Latin America.