Founders capitalize on Italy's demographic shift
In a bold move, Milan-based entrepreneurs Sergio and Massimo Bariani have tapped into a lucrative niche in Italy's aging population. Two decades ago, their vision of a senior living facility was met with skepticism, given Italians' deep-rooted attachment to their homes. However, their 120-bed facility quickly filled up, signaling a growing demand for specialized care.
Today, the Bariani brothers' company, Gruppo Gheron, has expanded to 36 state-of-the-art nursing and care homes across northern Italy. With a workforce of over 1,500 and €152 million in revenue last year, their success is undeniable. The company's growth shows no signs of slowing down, with plans to open seven new facilities in the next three years, each accommodating 1,000 residents.
The demand for nursing home beds in Italy is soaring, according to Alessandro Bariani, the group's CFO. He attributes this to the increasing number of elderly Italians who require assistance with daily living. Italy's demographic landscape is unique, with nearly a quarter of its population over 65, and just 12% under 14. This aging population presents both challenges and opportunities for the country's economy and public finances.
Some Italian entrepreneurs have seized this opportunity, creating companies that cater to the needs of the country's aging population. Rita Paola Petrelli, chair of Kolinpharma, a nutraceutical company, has developed food supplements based on natural ingredients with proven health benefits. These supplements, promoted by medical doctors, offer relief from age-related ailments, from achy bones to cognitive decline.
Kolinpharma's success lies in its commitment to research and development, ensuring its products are effective and backed by scientific evidence. Petrelli emphasizes the company's focus on supporting both patients and caregivers, aiming to enhance their quality of life.
The demand for elderly care in Italy is a pressing issue, especially as more women join the workforce. Giorgia Gollino, head of human resources at Gallas Group, an employment agency specializing in live-in carers and home help for seniors, highlights the challenges and opportunities presented by Italy's demographic winter. The agency has expanded its services to 50 Italian cities, connecting 13,000 families with caregivers.
However, labor shortages and restrictive migration rules pose significant challenges. Gollino notes the reliance on caregivers with legal work permits, as the main bottleneck in the industry. The scarcity of senior living facilities in Italy compared to other European countries further exacerbates the labor shortage issue.
Despite these challenges, some companies, like Ames Group, have found success in catering to the healthcare needs of expectant parents. Ames offers non-invasive prenatal testing, allowing parents to assess their unborn children's health early in pregnancy. This service has driven the company's growth, with revenues reaching €40 million last year, despite Italy's low fertility rate.
Nello De Rosa, Ames' CFO, attributes the success to the willingness of expectant couples to invest in comprehensive prenatal testing, ensuring the health of their children. As the Italian population ages, the demand for such specialized medical services is expected to rise, presenting a promising opportunity for companies like Ames.
