Industry Statistics and Trends
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 0.4 % over the past five years, to reach an estimated £10.2bn in 2024.
Trends and Insights
Demand is propelled by an ageing population who require more help
- In 2023, there were 11 million people aged over 65 in England according to Age UK’s 2023 The State of Health and Care of Older People. It’s those over 85 who are the group most likely to need health and care services, with 45% experiencing difficulty with day-to-day tasks.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Available beds will run out if care home building isn’t accelerated
- According to Savills UK Care Home Development publication in September 2023, it will take 144,000 more care home beds to keep up with population growth in the next decade.
Biggest companies in the Retirement Homes in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
HC-One Ltd | 419.8 | |
Barchester Healthcare Homes Ltd | 329.7 | |
Care UK Holdings Ltd | 303.7 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Private retirement homes, Council-run retirement homes and Voluntary non-profit retirement homes. Private retirement homes is the largest segment of the Retirement Homes in the UK.
Trends and Insights
Private retirement homes are struggling to stretch their budgets
- The private sector – both for-profit organisations and housing associations - has grown at the expense of public and voluntary counterparts due to limited government funding.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
This industry provides residential and personal care for elderly and physically disabled people that are unable to care for themselves or do not want to live independently. Industry operators typically provide room, board, supervision and assistance with day-to-day tasks. The industry does not include residential homes with full-time nursing care (see IBISWorld report Q87.100) or residential care for individuals with mental disabilities (see IBISWorld report Q87.200).
What's included in this industry?
Private retirement homesVoluntary non-profit retirement homesCouncil-run retirement homesCompanies
HC-One LtdBarchester Healthcare Homes LtdCare UK Holdings LtdPurchase this report to view all 6 major companies in this industry.
Related Terms
CARE HOMESELF-FUNDERPALLIATIVE CAREDOMICILIARY CARELEASEHOLD HOUSINGIndustry Code
SIC 87.30 - Retirement Homes in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Occupancy rates are back on track. Care homes are welcoming a high number of people back through their doors, with occupancy rates surpassing pre-pandemic levels.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Funding pressures plague care providers. They’re grappling with rising costs and weak local authority fees, which may compel them to refuse public residents because of the mo...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The South East’s appeal to retirees creates a strong market. People from London often move out of the capital to the nearby South East when they retire, so there are plenty o...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Location, pricing and reputation drive demand. Retirement homes must ensure proximity to potential clients, reasonable pricing and a strong reputation if they want to keep up...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The high cost of running retirement homes deters providers from expanding. Most companies don’t have lots of homes and only focus on a small, local market, keeping the market...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of HC-One Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Barchester Healthcare Homes Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Care UK Holdings Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for HC-One Ltd, and factors influencing its performance in the industry
- Description and key data for Barchester Healthcare Homes Ltd, and factors influencing its performance in the industry
- Description and key data for Care UK Holdings Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Quality care is paramount in retirement homes. They have to provide a safe environment, put together personalised care plans, respect residents' rights, ensure proper diet an...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Top care companies face scrutiny over their profit reporting. Investigations reveal complex company structures and offshore tax havens enable these well-funded homes to retai...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Retirement Homes in the UK industry in United Kingdom in 2024?
The market size of the Retirement Homes in the UK industry in United Kingdom is £10.2bn in 2024.
How many businesses are there in the Retirement Homes in the UK industry in 2024?
There are 3,377 businesses in the Retirement Homes in the UK industry in United Kingdom, which has declined at a CAGR of 0.8 % between 2019 and 2024.
Has the Retirement Homes in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Retirement Homes in the UK industry in United Kingdom has been declining at a CAGR of 0.4 % between 2019 and 2024.
What is the forecast growth of the Retirement Homes in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Retirement Homes in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Retirement Homes in the UK market in United Kingdom?
The biggest companies operating in the Retirement Homes market in United Kingdom are HC-One Ltd, Barchester Healthcare Homes Ltd and Care UK Holdings Ltd
What does the Retirement Homes in the UK in United Kingdom include?
Private retirement homes and Voluntary non-profit retirement homes are part of the Retirement Homes in the UK industry.
Which companies have the highest market share in the Retirement Homes in the UK in United Kingdom?
The company holding the most market share in United Kingdom is HC-One Ltd.
How competitive is the Retirement Homes in the UK industry in United Kingdom?
The level of competition is moderate and increasing in the Retirement Homes in the UK industry in United Kingdom.
Related Industries
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Competitors
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Complementors
View all industries in United Kingdom
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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