Shifting market forces, continually evolving government policy, the impacts of a pandemic and rising consumer expectations are reshaping how providers position themselves — and how older Australians experience care.Throughout this period, Edmonds Marketing has partnered with a diverse range of organisations – from small private operators and regional not-for-profits to large, nationwide ASX-listed companies. Working across residential care, home care, and retirement living, we’ve gained a unique, hands-on perspective of the dynamically evolving sector.

From a marketing perspective, a few key themes have emerged that are particularly relevant for leaders aiming to position their organisations effectively.

1. Convergence Across the Sector

Traditionally, the three arms of aged care — home care, retirement living, and residential care — operated in silos. Today, those lines are increasingly blurring:

• Residential aged care providers are expanding into retirement villages.
• Retirement living operators are entering the home care market (either directly or via partnerships).
• The care-focused part of the retirement village industry is evolving rapidly, with operators making it easier for residents to move into on-site aged care facilities or remain in retirement villages while receiving intensive in-home care.

Competition between different service types is intensifying as customers have more choice, alongside growing consolidation across the sector. This convergence is driven by consumer demand for continuity of care and providers’ need to diversify revenue streams, radically changing how consumers navigate and experience their aged care journey.

2. The Rise of Home Care

Home care is the standout growth area. Both government and consumer sentiment are firmly behind the push to “age in place”:

• Government policy: Designed to reduce the cost of residential care by keeping people at home longer.
• Consumers: Overwhelmingly prefer staying in familiar environments rather than moving into institutional care.
• Home care services are increasingly becoming the ‘entry’ point into the broader aged care journey.

With the onset of the new Aged Care Act 2025 and government investment in additional packages, pricing is set to become a critical competitive factor. At the same time, people are entering aged care much later in life—often as a last resort during times of crisis—and typically spending far less time in residential care, enabled by significant government investment in in-home care. Providers need to carefully consider what customers are willing to pay and continually monitor satisfaction. Pricing strategies must support competitiveness, deliver clear value for money, and maintain profitability. Marketing goes beyond promotion—it plays a central role in aligning pricing with the service offering and overall brand strategy.

3. Market Pressures: Profitability and Sustainability

Despite strong demand, financial pressures loom large:

• Reports suggest over half of aged care providers are not making a profit.
• Labour intensity and rising workforce costs are eroding margins.
• Workforce restructuring — with fewer nurses and more personal carers — is changing service models.

These pressures increase the need for organisations to differentiate through brand, manage reputation and service quality, and, importantly, retain and inspire their most valuable asset: their people. By developing a robust Employee Value Proposition and linking it to the Customer Value Proposition, organisations can clearly demonstrate what makes them unique, better engage staff, and reinforce a positive customer culture.

4. Reputation and Professionalisation

The sector has endured a difficult decade:

• Royal Commission into Aged Care Quality and Safety
• COVID-19 impacts
• Ongoing media scrutiny (e.g., Four Corners exposés)

The result has been a significant reputational hit. Customers and particularly their families are now far more discerning, requiring providers to respond with greater professionalism, stronger governance and careful management of expectations. Not all providers are equipped to do this effectively, which is likely to drive further market consolidation and rationalisation.To navigate stakeholder perceptions successfully, a provider’s brand presence must be sophisticated, consistent, and compelling.

5. Changing Consumer Expectations

The incoming Baby Boomer generation represents a decisive cultural shift:

• They are more empowered, more demanding and unwilling to accept the compromises of earlier generations.
• Many already pay for domestic services and expect higher quality, convenience, and choice.
• These consumers actively research providers, compare options, and value transparency and responsiveness in service.

Providers will do well to actively manage the customer journey and survey customers regularly to understand expectations, measure satisfaction and continuously improve the experience.Conclusion: A Sector in TransitionThe aged care sector is experiencing significant change, with wide variations in capability across providers. There is considerable movement through mergers, acquisitions, and new developments. While some organisations demonstrate strong leadership and a genuine commitment to serving older Australians, others show stagnation—failing to adapt, lacking strategic foresight, and struggling to navigate a challenging environment.If your organisation does not yet have a clear growth plan or a compelling value proposition or brand presence that resonates with your audience, it may be time to seek expert guidance.At Edmonds Marketing, we act as strategic partners and advisors. We focus on quality, integration, and strategy, ensuring all elements are in place before launching a campaign. We support senior management to deliver a considered, integrated approach. Thoughtful marketing isn’t just about promotion—it’s about positioning your organisation for sustainable growth and long-term success.