There's no escaping from the fact that populations around the world are getting older.
According to the United Nations, 1 in 11 people globally were over the age of 65 in 2019.
While this is already a significant number, it is expected to increase materially over the next three decades. The United Nations estimates that a sizeable 1 in 6 people will be over 65 globally by 2050.
In addition to this, it estimates that as many as one in four living in Europe and North America could be aged 65 or over by that time.
Combined with increasing chronic disease burden, I expect this trend to lead to growing demand for healthcare services over the next three decades.
In light of this, I think these healthcare shares could be great long-term investment options:
Cochlear Limited (ASX: COH)
Arguably one of the best ways to play the ageing populations thematic is Cochlear. This is because it is one of the leading hearing solutions companies. As people age, their hearing will generally fade and require some form of assistance. Not doing so can lead to the feeling of isolation and have other consequences.
Given the quality of its products, the industry's high barriers to entry, its wide distribution network, and high levels of investment in research and development, I believe Cochlear is well-positioned to benefit from this and generate strong sales and profit growth over the next decade and beyond. And while the suspension of elective surgeries during the pandemic is likely to weigh on its performance in the short term, I'm optimistic that it will bounce back quickly.
Ramsay Health Care Limited (ASX: RHC)
Another way to play this investment thematic could be Ramsay Health Care. It is a private hospital operator providing healthcare services from 480 facilities across 11 countries. This makes it one of the largest and most diverse private healthcare companies in the world. As such, I believe its global network is well-placed to capture growing demand for healthcare services over the coming decades.
And while I'm not overly bullish on the company in the immediate term due to tough trading conditions and the pandemic, I believe its long term outlook is extremely positive. Overall, I think this could make it worth considering a patient long term investment in its shares.
