At a glance Falling fertility rates are propelling major economies toward population collapse in this century. Two-thirds of humanity lives in countries with fertility below the replacement rate of 2.1 children per family. By 2100, populations in some major economies will fall by 20 to 50 percent, based on UN…

Over the past five years, the luxury industry experienced a period of exceptional value creation. Between 2019 and 2023, unprecedented demand for personal luxury goods—fashion, leather goods, watches, and jewelry among them—combined with a deep well of supply allowed the sector to achieve a 5 percent compound annual growth rate.…

In McKinsey’s latest ConsumerWise research, consumers report feeling more optimistic about the US economy than they have all year. Even so, US consumer optimism overall is still lower than prepandemic levels, and more than half of consumers (53 percent) report mixed feelings or being pessimistic about the state of the economy.For…

Life sciences is on the cusp of a new era of innovation. The convergence of breakthrough technologies, widespread access to data, and deeper insights into complex biological systems is revolutionizing how the industry approaches R&D. For instance, venture capital funding for machine-learning-enabled drug discovery surged more than sevenfold from 2019…

The competition among biopharmaceutical companies for externally sourced assets is heating up. Despite recent successes delivering innovative therapies at a faster pace and achieving solid returns for shareholders, demand persists across a range of unmet needs. And yet, companies are increasingly pursuing the same disease areas and targets. This “herding”…

Innovation is flourishing in the biopharmaceutical industry. Over the past decade, the volume of Phase I candidates in the drug development pipeline has grown by 60 percent, promising potential breakthroughs in treating a wide range of diseases. At the same time, there has been a noticeable shift across the industry…

In this episode of McKinsey on Building Products, McKinsey partner Rikki Singh sits down with Yuhki Yamashita, chief product officer at Figma, a company that provides collaborative online design tools. With a career in product and design at companies of all sizes, Yamashita has an approach to product development that…

Power politics. Wars. Trade battles. Climate change. Pandemics. Geopolitics is increasingly influencing how businesses operate, pushing senior leaders to look well beyond the walls of the corner office. Council on Foreign Relations president Michael Froman has spent his career bridging these worlds, from senior positions in the administrations of Presidents…

Since 2019, the United States healthcare industry has experienced substantial financial pressure, with industry EBITDA as a proportion of the National Health Expenditure declining by an estimated 150 basis points (Exhibit 1). The decline has hit payers and providers particularly hard—payers’ estimated margins in 2024 could be at their lowest…

Digital payments in the B2B arena have lagged far behind consumer e-commerce, even with the big shift to digital brought about by the COVID-19 pandemic. The vast majority of B2B payments occur between small and midsize businesses (SMBs), which are the target market for the B2B financial operations platform BILL.…

Back in July 2023, researchers at the McKinsey Global Institute estimated that gen AI could unlock between $60 billion and $110 billion a year in economic value for the pharmaceutical and medical products industries, boosting productivity and innovation in domains across the industry’s value chain—from the way new treatments are…

Life science companies have traditionally kept patients and consumers at arm’s length. Pharmaceutical, biotech, and medtech companies have viewed providers and payers, not patients, as their key customers and have rarely interacted with them as end customers. This approach has had to evolve in recent years. Consumers are now accustomed…

Despite dedicated efforts across the biopharmaceutical industry to streamline clinical development, clinical trials remain complex, costly, and time-consuming. These challenges are compounded by an increasingly competitive and crowded trial landscape. Yet accelerating clinical development remains crucial—not just for patients but for the enterprise. A 12-month reduction in the clinical development…