Global Market Outlook on Consumer Healthcare

  • Consumer health products do not require a written prescription from healthcare professionals but can be purchased directly from a pharmacy store
  • For instance, consumers with mild gastrointestinal conditions use gastrointestinal drugs such as laxatives, antidiarrheals, and digestives. The practice of self-medication also reduces the pressure on medical services and is easily accessible to patients in rural areas. This growing practice of self-medication is expected to positively affect the market for consumer healthcare market until the end of 2020
  • Factors like the increasing use of online resources and e-commerce websites will aid the prospects for market growth 
  • For instance, websites such as healthkart.com, vitacost.com, and vivavitamins.com offer a wide array of vitamin health drinks, protein shakes, and supplements online. Also, these sites offer live interactive chat sessions to provide instant support to individuals who face challenges while purchasing such products
  • This recent shift toward the use of e-commerce websites and online resources is expected to drive the market growth for consumer healthcare products during the forecast period

consumer-healthcare-global-market-size

Regional Market Analysis

North America and Europe

  • Major pharmaceutical, consumer products, medical device manufacturing companies, CRAMS organizations and health insurance companies are located here. In September 2016, the Senate Committee announced the need to explore FDA’s mandates on safety of cosmetics, and if the current regulations are in par to provide 100 percent consumer safety and has been issuing regulations on various consumer products relating to chemical poisoning, manufacturing practices and its impact on consumer health
  • The European Commission’s (EC) Chemical regulation body, European Chemicals Agency (ECHA) is focused on testing and evaluation of chemicals and entities under REACH, to evaluate the effect of these substance on people and aims to fill and update the gaps in dossiers to improve the data quality

Japan

  • Since the former ‘Pharmaceutical Affairs Act’ unified manufacturing and sales in Japan until 2005, Japan was not fertile soil for CMOs to develop. Once manufacturing and sales were recognized as separate by the ‘ Revised Pharmaceutical Affairs Act’ , the Japanese CRO/CMO market has been growing ever

Asia Pacific

  • Due to the lower cost of manufacturing and labor, with a large number of GMP facilities, less regulatory complications, Asia Pacific is growing rapidly
  • China has approved and paved way for a series of GMO crops. Seed companies have complained that china’s regulatory process is slow and this news means there is a hope for the companies to expand and gain access to markets

ROW

  • Latin America drives the market, as most of the Consumer Healthcare Products Manufacturer’s are trying to penetrate the growing market by localizing the products
  • Couple of A&Ms are also taking place in this region among CRAMS & Consumer Healthcare. There is not much growth in other regions, like Africa and the Middle East 

Outsourcing Adoption Rate

  • Increasing R&D Failures
  • Capital Efficiency (30-50 percent Cost Optimization)
  • Global Footprints and Localization
  • Capacity Constraints for product & line extensions and new products
  • New Product Development & Delivery Systems Technologies for product differentiation
  • Value added generics
  • Emerging Markets
  • Need for operational excellence in terms of GMP and regulatory compliance
  • Need for integrated & specialty services
  • Need for cost efficiencies due to patent expirations and increasing generics competition
  • Access to proprietary technologies for achieving product differentiation

Regulatory Trends

Regulatory paradigms that are evolving at regional level and changing worldwide

  • Evolving of defined and transparent regulatory guidelines for prescription, OTC, dietary supplements, nutritional products etc
  • Regulatory frame work for controlling each & every function research, manufacturing, quality control, labeling, packaging, storage and distribution, logistics etc.
  • Regulatory framework for proof of efficacy and safety
  • Restrictions on animal testing
  • Restrictions on the usage of certain packaging components like plastics for liquids 
  • Post-marketing vigilance onthe efficacy & safety
  • Anti-counterfeiting measures throughout the ‘supply chain management

Growth Drivers and Constraints

Drivers

  • Entry of CPG Companies
  • Need for cost efficiencies due to patent expirations and increasing generics competition
  • Access to proprietary technologies for achieving product differentiation
  • Leverage of external R&D sources between companies and service providers
  • Value-based-payment Models
  • Entry of numerous small, virtual start-ups having little market that have no manufacturing capacity and product development experience.
  • Government Policies to provide ‘Affordable Healthcare & Easy Access to Healthcare’

Constraints

  • Increasing ‘Regulatory Framework’ across the regions.
  • Burden of proof w.r.t. health benefit claims and safety esp. in EU
  • Prevention of abuse and misuse by the consumers
  • Counterfeiting Prevention
  • A&M of Vendors with Global CMO Companies thereby minimizing business opportunities and affecting Consumer Healthcare Market-R&D