Owning Health: The Move Towards Self-care and Implications for Marketers
Power to the people
Trust in GPs and medical institutions is declining in developed markets. People no longer tend to visit the family doctor and take his or her word when diagnosed. Indeed, doctors are often viewed with suspicion. The arrival of group practices, poly clinics and private healthcare means that people increasingly “shop around” for the right doctors, often demand a second opinion and carry out their own research regarding their healthcare needs and medicines. Many are worried that their doctor will offer them the cheapest and not necessarily the best treatments and medicines, or even that they are incentivised to prescribe certain drugs. In short, people want choice, and power.
Rising cost of healthcare
While consumers take an increasing interest in their health and illness prevention, healthcare costs are rising rapidly. This is partly due to the rising costs of medicine as a result of new developments. As consumers become more savvy about medicines due to the wealth of information available on the Internet and elsewhere, they are demanding access to the latest treatments, which can be prohibitively expensive for governments and consumers.
Furthermore, the costs incurred by hospitals and doctors are rising each year, due to factors such as malpractice insurance for risky surgical procedures, pharmaceutical drug reactions and deaths with accompanying lawsuits and complex medical equipment for diagnostic testing.
Move towards self-care
With governments seeking more ways to curb expenditure in the face of rising health costs, ageing populations, a growing health consciousness among consumers and a desire to take control over every aspect of their lives, the roles of private care and self-care are becoming ever more crucial.
The shift of power from governments and companies to the consumer, aided by the wealth of information provided by websites, bloggers, online communities, comparison sites and mobile applications, is helping people to make informed decisions about their health, education and other aspects of their lives. This has provided new opportunities for manufacturers of health-related products and services to market directly to consumers.
Governments have encouraged self-care by making more products and substances available without a prescription (over-the-counter, or OTC), and strengthening the role of chemists/pharmacists as healthcare advisers, allowing them to sell certain products behind-the-counter (BTC), or carry out health tests. At the same time, however, governments have a crucial role to play in protecting the health of consumers, and the growth of self-care has been hampered by stricter controls over the distribution and promotion of OTC products that are prone to misuse or abuse.
The role of pharma companies
The major pharmaceutical manufacturers are also responding to trends towards self-care by investing more heavily in the OTC market, by way of mergers and acquisitions, instigating Rx-to-OTC switches and educating consumers on the benefits of preventive medicine.
As drug innovation shifts to oncology and diabetes, this leaves little development in other areas that could support prescription blockbuster revenue in the future. With a number of patents due to expire in the short term, it makes sense for big pharmaceutical companies to move into the OTC arena. 2009 saw several major mergers and acquisitions take place, notably Merck & Co’s takeover of Schering-Plough and Pfizer’s of Wyeth, while Sanofi-Aventis acquired Chattem in order to facilitate the Rx-to-OTC switch of Allegra.
Santarus switched its PPI, Zegerid (marketed by Merck & Co’s new consumer health business, Schering-Plough HealthCare Products) partly in order to raise consumer and doctors’ awareness of the Rx version of Zegerid. Indeed, in 2010 Santarus launched a significant promotional campaign for its prescription products focused on the thousands of doctors who prescribe PPI products but are not visited by its sales force. The Santarus campaign included journal advertising, telemarketing, direct mail, e-mail promotion and product samples.
The major companies are also diversifying into the generics sector as governments encourage the use of generic drugs to reduce healthcare costs. To this end, Sanofi-Aventis recently acquired Medley in Brazil and Laboratorios Kendrick in Mexico.
The major players are also becoming increasingly involved with causes and campaigns that encourage healthy lifestyles and support healthcare workers and carers. For example, Johnson & Johnson’s latest campaigns include “Strength For Caring”, an online resource and community that aims to help family caregivers; “Safe Kids Worldwide”, which aims to put an end to childhood injury and death; “Because We Care, We Act”, a Chinese advertising campaign that celebrates the unsung heroes who dedicate themselves to caring for others; and “Having a Baby Changes Everything”, a YouTube video that uses parents in real situations to “celebrate the joys of parenthood”.
Going private
Many consumers are also dedicating an increasing share of their budgets to private treatments. These include a whole spectrum of services, ranging from private births to private nursing homes, and including dental and eye care services, cosmetic surgery, medical tourism, dermatology, chiropody, and alternative medicine, to name but a few.
Governments are encouraging consumers to take out private health plans or make use of private health services and facilities in order to ease the burden on national services. This is benefiting private insurers and practitioners; while those offering alternative treatments for health and wellbeing are benefiting from a trend towards natural and non-invasive treatments.
Trust in GPs and medical institutions is declining in developed markets. People no longer tend to visit the family doctor and take his or her word when diagnosed. Indeed, doctors are often viewed with suspicion. The arrival of group practices, poly clinics and private healthcare means that people increasingly “shop around” for the right doctors, often demand a second opinion and carry out their own research regarding their healthcare needs and medicines. Many are worried that their doctor will offer them the cheapest and not necessarily the best treatments and medicines, or even that they are incentivised to prescribe certain drugs. In short, people want choice, and power.
Rising cost of healthcare
While consumers take an increasing interest in their health and illness prevention, healthcare costs are rising rapidly. This is partly due to the rising costs of medicine as a result of new developments. As consumers become more savvy about medicines due to the wealth of information available on the Internet and elsewhere, they are demanding access to the latest treatments, which can be prohibitively expensive for governments and consumers.
Furthermore, the costs incurred by hospitals and doctors are rising each year, due to factors such as malpractice insurance for risky surgical procedures, pharmaceutical drug reactions and deaths with accompanying lawsuits and complex medical equipment for diagnostic testing.
Move towards self-care
With governments seeking more ways to curb expenditure in the face of rising health costs, ageing populations, a growing health consciousness among consumers and a desire to take control over every aspect of their lives, the roles of private care and self-care are becoming ever more crucial.
The shift of power from governments and companies to the consumer, aided by the wealth of information provided by websites, bloggers, online communities, comparison sites and mobile applications, is helping people to make informed decisions about their health, education and other aspects of their lives. This has provided new opportunities for manufacturers of health-related products and services to market directly to consumers.
Governments have encouraged self-care by making more products and substances available without a prescription (over-the-counter, or OTC), and strengthening the role of chemists/pharmacists as healthcare advisers, allowing them to sell certain products behind-the-counter (BTC), or carry out health tests. At the same time, however, governments have a crucial role to play in protecting the health of consumers, and the growth of self-care has been hampered by stricter controls over the distribution and promotion of OTC products that are prone to misuse or abuse.
The role of pharma companies
The major pharmaceutical manufacturers are also responding to trends towards self-care by investing more heavily in the OTC market, by way of mergers and acquisitions, instigating Rx-to-OTC switches and educating consumers on the benefits of preventive medicine.
As drug innovation shifts to oncology and diabetes, this leaves little development in other areas that could support prescription blockbuster revenue in the future. With a number of patents due to expire in the short term, it makes sense for big pharmaceutical companies to move into the OTC arena. 2009 saw several major mergers and acquisitions take place, notably Merck & Co’s takeover of Schering-Plough and Pfizer’s of Wyeth, while Sanofi-Aventis acquired Chattem in order to facilitate the Rx-to-OTC switch of Allegra.
Santarus switched its PPI, Zegerid (marketed by Merck & Co’s new consumer health business, Schering-Plough HealthCare Products) partly in order to raise consumer and doctors’ awareness of the Rx version of Zegerid. Indeed, in 2010 Santarus launched a significant promotional campaign for its prescription products focused on the thousands of doctors who prescribe PPI products but are not visited by its sales force. The Santarus campaign included journal advertising, telemarketing, direct mail, e-mail promotion and product samples.
The major companies are also diversifying into the generics sector as governments encourage the use of generic drugs to reduce healthcare costs. To this end, Sanofi-Aventis recently acquired Medley in Brazil and Laboratorios Kendrick in Mexico.
The major players are also becoming increasingly involved with causes and campaigns that encourage healthy lifestyles and support healthcare workers and carers. For example, Johnson & Johnson’s latest campaigns include “Strength For Caring”, an online resource and community that aims to help family caregivers; “Safe Kids Worldwide”, which aims to put an end to childhood injury and death; “Because We Care, We Act”, a Chinese advertising campaign that celebrates the unsung heroes who dedicate themselves to caring for others; and “Having a Baby Changes Everything”, a YouTube video that uses parents in real situations to “celebrate the joys of parenthood”.
Going private
Many consumers are also dedicating an increasing share of their budgets to private treatments. These include a whole spectrum of services, ranging from private births to private nursing homes, and including dental and eye care services, cosmetic surgery, medical tourism, dermatology, chiropody, and alternative medicine, to name but a few.
Governments are encouraging consumers to take out private health plans or make use of private health services and facilities in order to ease the burden on national services. This is benefiting private insurers and practitioners; while those offering alternative treatments for health and wellbeing are benefiting from a trend towards natural and non-invasive treatments.
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
Data Definitions
Demographic Factors
Ageing Populations
Chart 3 Percentage Population Aged 65+ by Region 2004/2009/2014
Care for the Elderly
Table 1 Average Life Expectancy at Birth in Selected Countries 2004/2009
Implications for Marketers
the Role of Government
Government Expenditure on Healthcare
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
Summary 2 Universal Healthcare Systems in Key Markets 2009
Delisting
Raising Medical Fees
Public Health Campaigns
Rx-to-otc Switching
Summary 3 Major Switches 2008-2010
Drug Safety
the Changing Role of Chemists/pharmacists
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
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
Chart 5 Per Capita Expenditure on Health Goods and Medical Services by Country 2009
Private Healthcare
Table 6 Private Health Expenditure as % Total Health Expenditure in Selected Markets 2004/2009
Changing Attitudes Towards Self-care
Men's Health
Growing Interest in Alternative Healthcare
Chart 6 Most Common CAM Therapies among US Adults 2007
Chart 7 CAM Use by Age in the USA 2007
Impact of the Internet
Health Tourism
Table 7 Medical Tourism Revenues in Leading Markets 2004/2009
OTC Market Trends
Overview
Table 8 Sales of Consumer Health Products in Selected Leading Markets 2004/2009
Chart 8 Leading Markets by Per Capita Sales of Consumer Health Products 2009
Table 9 Global Sales of Consumer Health Products by Broad Sector 2004/2009
Vitamins and Dietary Supplements
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
Chart 9 Brazil: Consumer Expenditure on Health by Category 2004/2009
Table 12 Brazil: Sales of Consumer Health Products by Leading Sector 2004/2009
China
Chart 10 China: Consumer Expenditure on Health by Category 2004/2009
Table 13 China: Sales of Consumer Health Products by Leading Sector 2004/2009
France
Chart 11 France: Consumer Expenditure on Health by Category 2004/2009
Table 14 France: Sales of Consumer Health Products by Leading Sector 2004/2009
Germany
Chart 12 Germany: Consumer Expenditure on Health by Category 2004/2009
Table 15 Germany: Sales of Consumer Health Products by Leading Sector 2004/2009
Chart 13 Japan: Consumer Expenditure on Health by Category 2004/2009
Table 16 Japan: Sales of Consumer Health Products by Leading Sector 2004/2009
UK
Chart 14 UK: Consumer Expenditure on Health by Category 2004/2009
Table 17 UK: Sales of Consumer Health Products by Leading Sector 2004/2009
USA
Chart 15 USA: Consumer Expenditure on Health by Category 2004/2009
Table 18 USA: Sales of Consumer Health Products by Leading Sector 2004/2009
Future Outlook
Trends To Watch
Forecasts
Table 19 Forecast Per Capita Expenditure on Health Goods & Medical Services by Country 2009/2014
Table 20 Forecast Sales of Consumer Health Products by Sector 2009/2014
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
Data Definitions
Demographic Factors
Ageing Populations
Chart 3 Percentage Population Aged 65+ by Region 2004/2009/2014
Care for the Elderly
Table 1 Average Life Expectancy at Birth in Selected Countries 2004/2009
Implications for Marketers
the Role of Government
Government Expenditure on Healthcare
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
Summary 2 Universal Healthcare Systems in Key Markets 2009
Delisting
Raising Medical Fees
Public Health Campaigns
Rx-to-otc Switching
Summary 3 Major Switches 2008-2010
Drug Safety
the Changing Role of Chemists/pharmacists
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
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
Chart 5 Per Capita Expenditure on Health Goods and Medical Services by Country 2009
Private Healthcare
Table 6 Private Health Expenditure as % Total Health Expenditure in Selected Markets 2004/2009
Changing Attitudes Towards Self-care
Men's Health
Growing Interest in Alternative Healthcare
Chart 6 Most Common CAM Therapies among US Adults 2007
Chart 7 CAM Use by Age in the USA 2007
Impact of the Internet
Health Tourism
Table 7 Medical Tourism Revenues in Leading Markets 2004/2009
OTC Market Trends
Overview
Table 8 Sales of Consumer Health Products in Selected Leading Markets 2004/2009
Chart 8 Leading Markets by Per Capita Sales of Consumer Health Products 2009
Table 9 Global Sales of Consumer Health Products by Broad Sector 2004/2009
Vitamins and Dietary Supplements
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
Chart 9 Brazil: Consumer Expenditure on Health by Category 2004/2009
Table 12 Brazil: Sales of Consumer Health Products by Leading Sector 2004/2009
China
Chart 10 China: Consumer Expenditure on Health by Category 2004/2009
Table 13 China: Sales of Consumer Health Products by Leading Sector 2004/2009
France
Chart 11 France: Consumer Expenditure on Health by Category 2004/2009
Table 14 France: Sales of Consumer Health Products by Leading Sector 2004/2009
Germany
Chart 12 Germany: Consumer Expenditure on Health by Category 2004/2009
Table 15 Germany: Sales of Consumer Health Products by Leading Sector 2004/2009
Chart 13 Japan: Consumer Expenditure on Health by Category 2004/2009
Table 16 Japan: Sales of Consumer Health Products by Leading Sector 2004/2009
UK
Chart 14 UK: Consumer Expenditure on Health by Category 2004/2009
Table 17 UK: Sales of Consumer Health Products by Leading Sector 2004/2009
USA
Chart 15 USA: Consumer Expenditure on Health by Category 2004/2009
Table 18 USA: Sales of Consumer Health Products by Leading Sector 2004/2009
Future Outlook
Trends To Watch
Forecasts
Table 19 Forecast Per Capita Expenditure on Health Goods & Medical Services by Country 2009/2014
Table 20 Forecast Sales of Consumer Health Products by Sector 2009/2014
