The Economics of Loneliness

Loneliness is no longer merely a social issue; it is increasingly becoming an economic factor. More and more people are living alone, spending more time at home, and making consumption decisions independently of family structures. This is creating new markets for products and services tailored to individual needs. The so-called “economy of loneliness” encompasses industries such as digital entertainment, gaming, delivery services, healthcare offerings, and digital community platforms. For investors, this trend offers the opportunity to participate in a long-term societal development that is largely independent of short-term economic fluctuations (Federal Statistical Office, 24.06.2026; DIW, Weekly Report 5/2025).

The underlying demographic trends are clear. In 2025, for example, approximately 17.3 million people in Germany lived alone, accounting for 20,9 percent of the population. Compared to 2005, the number of people living alone has risen by 22,3 percent. This trend is particularly pronounced in large cities, where more than a quarter of residents now live alone. At the same time, single-person households are the most common household type in Germany, accounting for 42,1 percent of all households. An aging population, urbanization, and changing lifestyles are likely to continue driving this trend in the coming years (Federal Statistical Office, 24.06.2026).

In addition to the objective increase in the number of people living alone, the subjective feeling of loneliness is also on the rise. According to a study by the German Institute for Economic Research, around 19 percent of people in Germany felt lonely at least sometimes in 2021. It is particularly noteworthy that more than half of those surveyed stated that they occasionally missed the company of others. This illustrates that the demand for entertainment, distraction, and digital experiences is driven not only by technological developments but also by societal changes. Companies that provide people with activities, entertainment, or opportunities for digital participation can benefit from this trend (DIW, Weekly Report 5/2025).

The “economy of loneliness” is more than just a short-term social trend. The rising number of single-person households, the increasing individualization of lifestyles, and the growing demand for flexible entertainment and digital engagement are creating long-term structural growth opportunities for select companies. Netflix is a prime example of the types of business models that could benefit from this trend, as the company caters precisely to the needs arising from changing lifestyles and consumption habits. Investors thus have the opportunity to capitalize on a long-term demographic and societal trend whose significance is likely to continue to grow in the coming years.