An analysis commissioned by the charity campaign Alzheimer's Research UK found that one in three people born in Britain 2015 will develop dementia.
The charity said that the study conducted by the Office of Health Economics, shows "a looming national health crisis as the UK population ages. There is a need for global efforts to develop treatments for the brain-wasting condition."
According to the World Health Organization, a total of 8,50,000 people in Britain and 35.6 million worldwide suffer from dementia.
Dementia is caused by brain diseases, most commonly Alzheimer's disease, which results in the loss of brain cells and affects memory, thinking, behavior and the ability to perform day to day activities.
Age is the biggest risk factor for dementia. As the life expectancy increases, the number of people with dementia is likely to increase.
"It is a wonderful news that each generation is living longer, but it is important to ensure people can enjoy these extra years in good health," said Matthew Norton, Alzheimer's Research UK's head of policy.
Mark Dallas, a neuroscientist at Britain's University of Reading who specializes in Alzheimer's, said that this study highlighted the gaps in research efforts and funds.
"The startling numbers of people born this year that will be affected by dementia (put) it on a par with other life-changing diseases. However for every one dementia researcher there are five researching cancer. We must invest in innovative research to redress the balance," said Dallas.