Feeling frail: Self-funded residents support growth, but low private funding places pressure on profit

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 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 3.6% over the five years through 2018-19, including a forecast 2.7% increase in the current year, to reach £7.4 billion. Owing to increasing demand, a number of new firms have entered the industry, with industry enterprise numbers are anticipated to rise at a compound annual rate of 6.1% over the past five years...read more.

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

Industry Threats & Opportunities

  • Increasing self-funding has supported revenue growth, despite pressures on state funding
  • Downsizing of operations by major players has led to establishments rising more slowly than enterprises
  • Though overall funding for residential care is expected to increase, per-resident funding rises are unlikely
  • Industry Report - Industry Key Buyers Chapter

    The Residential Nursing Care industry exhibits a low level of market share concentration and is highly fragmented. The top four players in the industry are expected to account for a modest 20.8% of industry revenue in 2018-19. Market leader Four Seasons Health Care Ltd is estimated to account for 7.1% of revenue in the current year. While several of the larger firms have expanded their operations through acquisitions, a number of small players have entered the industry in line with rising demand. The number of enterprises is estimated to grow at a compound annual rate of 6.1% over the five years through 2018-19, while the number of establishments is expected to grow at a compound annual rate of 3.1% over the same period. Tho...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
    ProfitWagesPurchasesRentUtilities 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?

    The Residential Nursing Care market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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