Perhaps this is one of the most representative examples of the loneliness epidemic ravaging our planet. This relentless threat not only leaves scars on the body and mind, but also leads to high public social and healthcare spending and a growing loss of corporate productivity. At the same time, however, it creates one of the most profitable businesses of the coming years.
Over a billion people worldwide experience frequent or severe loneliness, and the numbers are rising, especially since the COVID-19 pandemic in 2020. This great paradox is evident in the age of constant connectivity, where technological devices and transportation infrastructure are proliferating, yet loneliness is growing. Various institutions, including the World Health Organization (WHO), express grave concern about the scale of this problem. The OECD also recognizes that loneliness is escalating in most of its member countries. Analyses by Brigham Young University show that the effects of loneliness are comparable to those of smoking or obesity. While some studies refer to loneliness as unwanted, the WHO considers this distinction unnecessary: ”We always consider loneliness involuntary and unwanted.” It is a subjective experience characterized by the desire for more human contact. This negative emotional state, resulting from a lack of social relationships of all kinds, causes considerable devastation—both psychologically and in public finances.
The costs of loneliness in developed societies have been little analyzed, although they are increasingly receiving attention in economic and health research. Loneliness has serious consequences for the mental and physical health of those affected, which in turn has significant economic implications. It increases the risk of conditions such as depression, anxiety, heart disease, and dementia, is associated with greater use of health services, and increases the risk of premature death by up to 26%. Approximately 43% of people experiencing loneliness have considered suicidal thoughts or self-harm. The OECD acknowledges that loneliness also has profound negative effects on education and labor market participation.
An emotion that kills
In Spain, where the government is working on developing a national strategy against loneliness and many municipalities have already implemented concrete plans, direct costs amount to €14.141 million annually. This is according to the study “The Cost of Unwanted Loneliness in Spain,” conducted in 2021 by the ONCE Foundation in collaboration with Nextdoor. Health costs for doctor visits and medication amount to approximately €6.101 million, while productivity losses due to reduced working hours amount to more than €8.000 million per year.
In addition, loneliness leads to a reduction in quality of life equivalent to 1.04 million years of full health. This means that in 2021, for every Spanish citizen suffering from social isolation (5,380,853 people), the associated costs amounted to €1,134. “The growing interest in loneliness is a response to the significant increase in the number of people affected and a greater awareness of its impact on public health and quality of life, which is becoming a global problem,” explains María Teresa Sancho, Director General of the Institute for Elderly and Social Services (IMSERSO).
Globally, annual costs amount to hundreds of billions of euros. In the United States alone, where the feeling of social isolation is growing without compassion – former Surgeon General Vivek Murthy reported in 2023 that over 50% of adults in the United States experience significant loneliness – the cost of absenteeism amounts to $406 billion annually, according to a report by the Center for BrainHealth. “The impact on productivity and labor force participation is undoubtedly even more serious.”
Loneliness is spreading on a hyperconnected planet where human interactions and perceptions of the world have changed. An aging population and increasing life expectancy are just some of the causes. “With a life expectancy of 84 years, Spain is above the European average of 81.5 years,” says Guido Stein, professor at IESE. Other significant changes include shrinking households, the increase in single people, remote working, migration to urban centers, and the use of digital platforms—all of which have reduced personal interactions.
There are numerous global trends that are leading to a decline in social connections and d lead to a fragility of relationships: the shift from extended families to nuclear families, the disintegration of communities, increasing political and social polarization, accelerated change and instability, and the loss of relational spaces due to excessive digitalization. Simona Demelova and Elisa Sala, authors of the study “The Experience and Perception of Unwanted Loneliness and Community Responses,” conducted by the ISEAK Foundation for the Red Cross, comment: “We live in societies characterized by fluid modernity, where instability, precarious ties, and a lack of social cohesion prevail.” Polish-British sociologist Zygmund Bauman argues that we view independence and autonomy as symbols of social success, while human nature demands the exact opposite: We are interdependent and need each other to survive.
Loneliness is spreading and affects people of all ages and social classes, with particular prevalence among young people, the elderly, people with disabilities, migrants, and LGBTI people. “The impact is devastating—economically, emotionally, and health-wise,” says Eduardo Irastorza, professor at OBS Business School and author of the report “The Business of Loneliness in Developed Societies.” This enormous problem not only demands attention, but also presents a clear business opportunity: individuals are seeking products and services to alleviate feelings of isolation.
Can the business world ignore the opportunity to capitalize on this situation? “A new economy of loneliness is rapidly taking shape worldwide,” says Atanu Biswas, professor at the Indian Institute of Statistics in Calcutta. The promise of facilitating human contact has become a gold mine whose value is difficult to quantify due to its breadth and transversality. “It is mobilizing billions in a sector that is considered one of the largest of the future and also serves as a generator of new business ideas,” believes Irastorza. He adds, “Ultimately, all sectors will recognize and capitalize on this gold mine.” Franc Carreras, Professor of Marketing at Esade, agrees: “Companies are adapting to the growing target group of single people by offering smaller, ready-made meals, for example.”
From Pets to Dating
Some figures illustrate the scale of the problem. A report by consulting firm Grand View Research estimates that the market for AI virtual companions will reach $140.754 million by 2030. Dating platforms could reach $17.280 million in the same year; mental health apps are estimated to reach $7.480 million in 2024 and could grow by $20.920 million by 2033. The global pet supplies market is expected to exceed $427.000 million in 2032 (compared to $259.37 million in 2024).
The head of the YouTube channel Economic Circuit, which offers in-depth analyses of economic, political, and geopolitical topics, dares to cite a figure that is as uncertain as it is significant: “Loneliness is a huge market that could exceed $500,000 million by 2030, depending on the growth of AI,” says John Lanerborg, who runs the channel.
The list of companies offering solutions to loneliness includes pets (real and virtual), social robots for the elderly, intergenerational support programs, AI-generated friendships, dating apps (like Tinder and Bumble), friend-rental companies, massive courses, digital mental health clinics, medications (such as anxiolytics and antidepressants), senior living (residences designed to promote an active lifestyle), communal living, social spaces, and group travel. “There are increasingly more creative solutions, including an anti-loneliness club in California,” says Biswas, pointing to the Groundfloor Club, which offers coworking, access to unlimited events, and an online community for $200 a month. This is the flip side of contemporary capitalism.
Loneliness is inexorably progressing and metastasizing in modern societies, especially after COVID. “According to various surveys, in 2016, 12% of the European adult population reported feeling lonely. In 2020, this proportion rose to 25%,” report Demelova and Sala. This means that more than 75 million adults in Europe frequently suffer from this heartbreaking feeling. Worldwide, almost one in four people over the age of 15 (more than 1.4 billion citizens) report feeling quite or very lonely, according to a study by Meta and Gallup conducted in 142 countries between June 2022 and February 2023.
In Spain there is no comprehensive measurement with large Population samples are not available, although some analyses exist. One of these is the Barometer of Unwanted Loneliness in Spain 2024, a study sponsored by the ONCE Foundation and the AXA Foundation within the framework of the Soledad ES Observatory. It concludes that 20% of the population is affected, with the problem being more prevalent in women than in men. It is particularly widespread among young people (34.6% between 18 and 24 years of age).
However, the study conducted by the ISEAK Foundation broadens the scope. According to the De Jong-Gierveld scale, which consists of six questions, 44% of the Spanish population feels lonely. However, not everyone experiences this feeling seriously or with a noticeable impact on their quality of life. The trend shows that the feeling of loneliness decreases with age. “Compared to 50% among those under 30, this figure is 47% among the 30-39 age group, dropping to 37% among those aged 70-80. However, among those over 80, the figure rises to almost 50%,” emphasize Demelova and Sala. However, the general director of Imserso urges caution in interpreting the data and warns against overestimating the situation: “I’m not a fan of pathologizing perceptions that are, in a way, inherent in human nature,” says María Teresa Sancho.
Businesses have recognized the need. “The enormous proliferation of leisure activities such as cooking, embroidery, DIY, bookbinding, painting, or decorating courses goes beyond their function and responds to the need to connect with other people and make friends or even find a partner,” says Irastorza. Another huge market is the wellness segment: gyms, sports clubs (hiking, trekking), massage and beauty centers, as well as yoga and meditation. “Matching is another key driver here,” adds the professor.
Capital Flow
Loneliness is increasingly becoming a focus for startups, and venture capital is entering this market on a large scale. Some companies operating in this space in one way or another include Papa, which connects seniors with peers and has raised over $240 million; the platform 222, an AI-powered social network that enables group meetings between strangers in real-life settings; and Pie, which has raised $24 million and has more than 20,000 active users, whom it connects through IRL (real-life) events. Other examples include ElliQ, a social robot for the elderly, and Cuideo (Spain), which offers home care with a social component.
“When we launched Timeleft in May 2023, we observed a clear global trend: people, especially in big cities, are increasingly looking for real, personal social connections,” says Marta Unturbe, Strategic Operations Manager of the company, which connects strangers for dinner in restaurants. These types of social dinner platforms are also part of the loneliness business ecosystem. This platform, in particular, has grown from 500 to over 27,000 weekly active users and has expanded to more than 300 cities in 62 countries. “We’re seeing growing demand among key demographics such as seniors, remote workers, and people moving to new cities, highlighting the need for social connections,” says Unturbe.
In addition, the Bumble dating app has created a standalone platform for finding friends. The Nudge helps users discover interesting activities. The Breakfast is an app that facilitates connections between creative people through daily virtual meetings over breakfast. RealRoots runs six-week programs for like-minded women, and Tribe transforms urban neighborhoods into more connected communities.
It’s important to consider some key markets. It was inevitable that artificial intelligence would sooner or later enter this space. Chatbots that offer conversations via text or voice, potentially perpetuating loneliness, have found their place. In the elderly segment, their usefulness is evident. AtlanTTic, the Telecommunications Technology Research Center at the University of Vigo, launched Celia, the first Galician robot to combat social isolation, in 2023. “The robot was designed with the vision of creating conversational assistants focused on the interests of older people, entertaining and accompanying them. In this demographic, loneliness is one of the main problems, which has been exacerbated by the pandemic,” explains Francisco Javier González, professor of telematics and director of the information technology group at the university.
University of Vigo. Celia has now been renamed Serenia, and the university has founded a spin-off, Serenia Solutions, which currently has over 10,000 active users.
But there are business models that go beyond elderly care. In fact, many more. Platforms offering AI companions are more immersive, with enhanced audiovisual interfaces and simulated emotional intelligence. Building emotional connections is often easier than in real life. According to a report by ARK Invest, a US investment firm, the adoption of this technology is 150% faster than that of social networks and online games in the first six years of its expansion. This data highlights the unprecedented speed at which consumers are integrating generative AI into their daily lives.
Here are some of the most popular examples: Character.AI received a $150 million investment in March 2023 in a round led by venture capital firm Andreessen Horowitz, making the company a unicorn. XiaoIce is a Chinese chatbot from Microsoft with emotional capabilities, and Replika is an AI companion that allows users to converse, reflect, laugh, and make friends.
“Loneliness is on the rise and is influenced by both real and digital factors. More and more people are reporting feeling disconnected, even when surrounded by others,” says Dmytro Klochko, CEO of Replika, which was founded in 2016 and now has 35 million registered users. He adds, “We don’t intend to cure loneliness, but we offer something that helps people feel a little more seen and connected—and that can sometimes change everything.” The chatbot can be a version of itself, someone the user knows, or a fictional character. Users can choose their appearance, clothing, the space in which they interact, and even their voice. It’s also possible to take selfies together and make the interaction as immersive and emotionally engaging as the user desires (e.g., by selecting conversation topics or interacting in augmented reality, which requires a subscription).
Another variation is companion robotics (body robots), an emerging market that is developing rapidly, particularly due to demographic changes and the needs of an aging population. “In Europe, we are seeing greater integration of robots, especially in the social and healthcare sectors. In the coming years, we will see robots with more emotional capabilities, greater multimodal interaction, and personalization based on the user profile,” says PAL Robotics, a pioneering company in service robotics in Europe, founded in Barcelona in 2004. One of its robots, ARI, measures 1.65 meters and is used, among other things, as a companion. Depending on the model and functionality, the investment in these robots can be compared to the cost of a motorcycle or an upper-middle-class car. The economic impact of this industry is already noticeable and continues to grow: “In the consumer service robot segment, more than 4.1 million units have already been sold, according to industry information,” says PAL.
Risks and Limitations
There is concern that all these technologies could ultimately replace real-life relationships. The experts interviewed speak of complementarity: “They will be a tool to promote socialization,” believes González. Klochko adds: “Replika could even ask you about your friendships, encourage you to reach out to others, or remind you to go outside.” The danger, however, lies in not knowing what is real and what is simulated. For example, on Replika, approximately 60% of paying users reported having a romantic relationship with their virtual boyfriend.
Furthermore, the ethical and data protection framework must be considered. “Many technological solutions involve the monitoring and analysis of sensitive data, so we must ensure the security and autonomy of users,” says Borja Sangrador, Partner in Healthcare & Life Sciences at the consulting firm EY. Another critical issue is the digital divide. “Many people who suffer from loneliness do not have easy access to these technological solutions; inclusion must be a priority,” he adds.
Another area that deserves attention is mental health, particularly the expansion of digital platforms. Examples include BetterHelp, which offers access to more than 28,000 therapists in over 200 countries, and Talkspace, which also connects users with professionals via a mobile app and was launched in 2021.
The Spanish startup Aimentia, which specializes in digital mental health through artificial intelligence and closed a €500,000 investment round in February 2023, believes that AI is democratizing mental health. “The future of mental health will be hybrid: human empathy will be amplified by the precision of artificial intelligence,” says Edgar Jorba, CEO and co-founder of Aimentia, who is convinced that “loneliness will be the new silent pandemic of the 21st century.” “Approximately 40% of those receiving care directly or indirectly mention feelings of isolation, disconnection, or lack of emotional support,” says the company, which is expanding to Mexico, Chile, and Argentina. Jorba emphasizes: “AI in mental health does not replace humans; it frees them to focus on human care.”
Flesh-and-blood friends for rent are another branch of this industry. Client Partners, available in Japan, and Rent A Friend are some of the companies that offer such atypical services. “We are responding to a unique and currently unmet need. While our services can help alleviate loneliness—which is a valuable and positive side effect—that is not our primary goal. Our core mission is connection,” says Andrew Wolf, CEO of Rent A Friend, a company founded in New Jersey in 2009. The platform offers access to a global network of 40,000 active “friends” through a monthly subscription of $19.99. There is no typical user: “It covers all demographic profiles,” says Wolf. In Spain, there are about 1,500 “friends.”
