Still standing: Despite funding pressures, demand from an ageing population supported growth

Operators in the Residential Nursing Care industry provide accommodation and intensive care nursing. Industry demand has risen steadily in recent years in line with the ageing of the UK population. However, industry revenue has been limited by state involvement, which has kept care fees artificially low for a large proportion of nursing home residents. Industry revenue is expected to grow at a compound annual rate of 4.8% over the five years through 2018-19, including a forecast 2.6% increase in the current year, to reach £7.8 billion. Weak government funding and inflationary wage cost pressures have constrained industry margins over the past five more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Weak government funding and cost inflations have weighed upon margins in recent years
  • Almost all local councils have either considered or approved a rise in council tax to fund social care
  • Whilst funding is likely to increase overall, pressure is expected to remain on a per-capita basis
  • Industry Report - Industry Products Chapter

    Residential nursing care facilities have qualified nurses on duty at all times. Those with dementia or other debilitating illnesses may require residential nursing care for the specialised support it offers. There is a trend towards residential nursing care facilities that specialise in caring for dementia patients. Speciality care homes are spread across the below market segments.Private-sector carePrivate-sector nursing care provision grew steadily in the 1990s and 2000s. Gaps in the market caused by the combination of an ageing population and a shortage of public-sector provision enabled the revenue generated by private-sector providers to expand. Thi...purchase to read more.

    Additional Insights for the Residential Nursing Care Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Residential Nursing Care Industry are

  • Provision of appropriate facilities
  • Must comply with government regulations
  • Optimum capacity utilisation
  • IBISWorld analysts also discuss how external factors such as Population aged 65 years and over and Real government consumption expenditure in the Residential Nursing Care industry impact industry performance..

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    What's in this report

    What is the Residential Nursing Care Industry?

    Operators in this industry provide combined residential and intensive nursing care. This combination is what differentiates the industry from other care home operations.

    Industry Products
  • Private-sector care
  • Public-sector care
  • Voluntary (third-sector) care
  • Industry Activities
  • Operating homes for the elderly with nursing care
  • Operating convalescent homes
  • Operating nursing care facilities
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Population aged 65 years and over
  • Real government consumption expenditure
  • Real household disposable income
  • Average weekly hours of work

  • Current Performance
  • Supply and demand
  • Bridging the gap
  • Rising cost of labour
  • Chart: Revenue Growth

  • Industry Outlook
  • Free movement
  • Uncertain funding
  • Cashing in
  • Table: Residential Nursing Care Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • General Medical Practices
  • Grocery Wholesaling
  • Pharmaceutical Wholesaling
  • Public Relations & Communication Activities
  • Temporary-Employment Placement Agencies

  • Products & Services
  • Private-sector care
  • Public-sector care
  • Voluntary (third-sector) care
  • Chart: Residential Nursing Care 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 or under
  • Chart: Major Market Segmentation for the Residential Nursing Care Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent
  • Utilities and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Residential Nursing Care

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Four Seasons Health Care Ltd, Barchester Healthcare Homes Limited,
  • Table: Four Seasons Health Care Ltd - financial performance
  • Table: Barchester Healthcare Homes Limited - financial performance

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

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

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Residential Nursing Care Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Care Home
  • A residential setting where older people live, usually in single rooms, and have access to on-site care services. Care homes are registered to provide different levels of care.
  • Care Quality Commission
  • The regulatory body for care homes, home care agencies, nursing agencies and shared living schemes.
  • Respite Care
  • Temporary care given to a person who is elderly, ill or disabled. It is sometimes referred to as short-break care.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Residential Nursing Care 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 Residential Nursing Care:
    • 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 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 Residential Nursing Care 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 Residential Nursing Care, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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