Owning Health: The Move Towards Self-care and Implications for Marketers

EXECUTIVE SUMMARY

Demand Factors

Summary 1 Factors Influencing Move Towards Self-Care

Consumer Expenditure and Trends

Chart 1 Consumer Expenditure on Health in Leading Markets

Consumer Health Products Trends

Chart 2 Consumer Health Products – Leading Sector Shares 2009

Outlook

INTRODUCTION AND DEFINITIONS

Overview

Power to the people
Rising cost of healthcare
Move towards self-care
The role of pharma companies
Going private

Data Definitions

Government expenditure on health
Public health expenditure
Private health expenditure
Consumer expenditure on health goods and medical services

DEMOGRAPHIC FACTORS

Ageing Populations

People are living longer
Western Europe has highest share of over 65s
Life expectancy greatest in Japan
Chart 3 Percentage Population Aged 65+ by Region 2004/2009/2014

Care for the Elderly

A burden on public coffers
Lack of funding leading to inadequate care
Franchising home care
Table 1 Average Life Expectancy at Birth in Selected Countries 2004/2009

Implications for Marketers

THE ROLE OF GOVERNMENT

Government Expenditure on Healthcare

The need to curb costs
Table 2 Government Expenditure on Health in Selected Markets 2004/2009
Table 3 Government Expenditure on Health as a % Total Expenditure 2004/2009

National Healthcare Systems

Socialised healthcare prevalent in Europe
Differing levels of government involvement
Working towards a perfect system
Obama passes controversial US health reform bill
China and India to restore universal care
Summary 2 Universal Healthcare Systems in Key Markets 2009

Delisting

Raising Medical Fees

Public Health Campaigns

Encouraging healthy lifestyles
Focus on obesity and smoking
Promoting self-medication
Controlling pandemics

Rx-to-OTC Switching

Higher switch activity
Major switches boost US market
EU centralised switches
Emergency contraception
Emerging categories
Changes to Japan’s switch process
Summary 3 Major Switches 2008-2010

Drug Safety

PSE restrictions stepped up
Codeine addition gives cause for concern
The debate continues over children’s cough and cold remedies

The Changing Role of Chemists/Pharmacists

Extending chemists/pharmacists’ powers
Liberalising retail markets
Drop-in surgeries
The war on illegal drugs

RETAILING TRENDS

Consolidation

Chart 4 Global Market Shares of Leading 10 Parapharmacy/Drugstore Chains 2009

Communication Strategies

The Growth of Private Label

Discounting

CONSUMER TRENDS

Consumer Expenditure on Health

Americans are the top spenders
Lack of government funding forces Chinese consumers to pay more
Brazil and Russia witness dramatic growth in health spending
Chart 5 Per Capita Expenditure on Health Goods and Medical Services by Country 2009
Table 4 Consumer Expenditure on Health Goods and Medical Services 2004/2009
Table 5 Health Goods and Medical Services as % Total Consumer Expenditure by Country 2004/2009

Private Healthcare

Private funding needed to ease government burden
All change in the USA?
Private health ratio higher in developing markets...
...And drops drastically in Netherlands
Table 6 Private Health Expenditure as % Total Health Expenditure in Selected Markets 2004/2009

Changing Attitudes Towards Self-Care

Survey reveals national differences
Tradition and regulations affect propensity to self-medicate
Easy access to Rx drugs causes confusion
Prevention is better than cure
Home testing

Men’s Health

Wider availability removes stigma
Targeting men through social media
Segmenting the market

Growing Interest in Alternative Healthcare

Overview
Traditional medicine dominates in countries of origin
CAM develops elsewhere
US consumers flock to alternative practitioners
Chart 6 Most Common CAM Therapies among US Adults 2007
Chart 7 CAM Use by Age in the USA 2007
Europeans favour homeopathy

Impact of the Internet

The rise of Dr Google
Online shopping
Illegal purchases

Health Tourism

Combining health with leisure
Eastern Europe catering to Western patients
Asian countries position themselves as emerging health destinations
Indian government promotes medical tourism
The emergence of specialist health tour operators
Table 7 Medical Tourism Revenues in Leading Markets 2004/2009

OTC MARKET TRENDS

Overview

Leading markets
Chart 8 Leading Markets by Per Capita Sales of Consumer Health Products 2009
Table 8 Sales of Consumer Health Products in Selected Leading Markets 2004/2009
Sector trends
Table 9 Global Sales of Consumer Health Products by Broad Sector 2004/2009

Vitamins and Dietary Supplements

Preserving good health
Vitamin D as a sun substitute
Children’s vitamins take off
Table 10 Global Sales of Vitamins and Dietary Supplements by Subsector 2004/2009

Herbal/Traditional Products

Table 11 Global Retail Sales of Herbal/Traditional Products 2004/2009

MARKET SNAPSHOTS

Brazil

Attitudes towards self-care
Chart 9 Brazil: Consumer Expenditure on Health by Category 2004/2009
Consumer health products trends
Table 12 Brazil: Sales of Consumer Health Products by Leading Sector 2004/2009

China

Attitudes towards self-care
Chart 10 China: Consumer Expenditure on Health by Category 2004/2009
Consumer health products trends
Table 13 China: Sales of Consumer Health Products by Leading Sector 2004/2009

France

Attitudes towards self-care
Chart 11 France: Consumer Expenditure on Health by Category 2004/2009
Consumer health trends
Table 14 France: Sales of Consumer Health Products by Leading Sector 2004/2009

Germany

Attitudes towards self-care
Chart 12 Germany: Consumer Expenditure on Health by Category 2004/2009
Consumer health products trends
Table 15 Germany: Sales of Consumer Health Products by Leading Sector 2004/2009

Japan

Attitudes towards self-care
Chart 13 Japan: Consumer Expenditure on Health by Category 2004/2009
Consumer health products trends
Table 16 Japan: Sales of Consumer Health Products by Leading Sector 2004/2009

UK

Attitudes towards self-care
Chart 14 UK: Consumer Expenditure on Health by Category 2004/2009
Consumer health trends
Table 17 UK: Sales of Consumer Health Products by Leading Sector 2004/2009

USA

Attitudes towards self-care
Survey reveals mixed findings
Buying overseas
Chart 15 USA: Consumer Expenditure on Health by Category 2004/2009
Consumer health trends
Table 18 USA: Sales of Consumer Health Products by Leading Sector 2004/2009

FUTURE OUTLOOK

Trends to Watch

Greater move towards self-care
Ongoing health reforms
Age of robots on the horizon?
Further switches on the agenda
Safety first
Uncertain future for alternative healthcare
Strengthening the role of chemists/pharmacists
Innovation
Further segmentation on the cards
Medical tourism set to grow
Competition from functional food
The role of the Internet

Forecasts

Consumer expenditure
Table 19 Forecast Per Capita Expenditure on Health Goods & Medical Services by Country 2009/2014
Consumer health products
Table 20 Forecast Sales of Consumer Health Products by Sector 2009/2014

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