October 15, 2007…
It was the day it all changed.
It was the day the very first baby boomer filed for social security benefits… with another 80 million waiting patiently behind her.
Baby boomers would begin retiring by the thousands shortly thereafter, clearing out their retirement accounts, spending millions of disposable income just to keep their bodies going another 30+ years.
Though, what many don't realize is that this major formidable, 20-year event will change just about everything. Not just because this generation holds trillions in wealth… not just because they'll force massive changes in Social Security and health coverage…
But because this group expects to have longer, more active lives…
And that means they'll spend heavily - at any cost - to keep their bodies in tip-top shape.
More than 10,000 baby boomers will hit retirement age every day over the next 20 years. And nearly 75% of them expects to live well into their 80s… even 90s.
What's more, they stand to inherit more than $15 trillion over the next 20 years. Retailers, marketers, doctors, gym equipment companies, and hair experts alike have already picked up on this very trend, as 80 million baby boomers spend whatever it takes to keep their bodies up to par.
GNC Holdings - a national retailer of health supplements - just announced that baby boomers are one of its biggest buyers of its products for high blood pressure, digestion, eye and brain health, and muscle and bone density.
The market for skin care and anti-aging products is expected to balloon from around $80 billion today to more than $114 billion by 2015, according to Global Industry.
Companies and clinics are promoting hormone replacement drugs as a way to slow the aging process, too. Some cost as much as $15,000 a year. In 2011, consumers spent $1.6 billion on prescription testosterone therapies, almost triple the amount spent in 2006.
According to the American Society of Plastic Surgeons, there were more than 13 million cosmetic procedures performed in 2010 - a 77% increase in a decade. An Associated Press poll found that 20% of baby boomers have either had or would consider cosmetic surgery. And, more and more men are requesting cosmetic procedures. For example, facelifts for men are up 14% from 2009-2010.
The global sports apparel industry is expected to soar well above $126 billion by 2015, driven by a trend toward healthier, more active lifestyles, with older demographics and women becoming more active, according to Global Industry Analysts.
Lastly, baby boomers will spend billions on weight loss to keep their bodies in top physical form. They're joining gyms, weight loss clubs, exercising more, and could even turn to weight loss drugs, if need be. Who knows? But it's something worth paying attention to as Arena Pharmaceuticals' (NASDAQ:ARNA) Belviq hits consumer shelves next month.
Even hair restoration - a $3 billion business on the rise - is popular among the baby boomer generation. Nobody wants to go bald or lose hair, but many of us will any way.
In fact, according to the International Society of Hair Restoration Surgery (ISHRS), more than 800,000 men and women sought surgical or non-surgical help for hair loss in 2008 alone.
Bottom line - the baby boomers and the biotech indexes are screaming for us to buy in.
Only fools would miss this.
Forbes just reported that the global market for pharmaceuticals could soar from $950 billion to more than $1.2 trillion by 2016.
Even the big boys are finally starting to catch on. Fidelity, Goldman Sachs, Black Rock, Vanguard and dozens more increased their holdings in biotech by more than $4 billion.
And if you're in the right place at the right time, the windfall profits are endless. Because - let's face it - making money from this solid, unbreakable trend couldn't be any easier.
There's one simple way to trade it…