Consumer Healthcare Market Intelligence

Industry Outlook & Drivers

Global Market Outlook on Consumer Healthcare Services

• 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 consumer healthcare market size 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 Industry Analysis

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

Companies are looking for ways to reduce costs, to overcome capacity constraints, to minimize fixed costs, minimize product-market cycle times and to achieve capital efficiency. Further, these companies are extending their global foot prints and try to localize their products. These companies, therefore, are turning to value-based outsourcing and becoming ‘Consumer Centric’. Key Outsourcing Consumer Healthcare MarketTrends

• 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

The availability of low cost drugs to the public is a driving force for the emerging consumer healthcare market.

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

Market Trends

The consumer healthcare market remains highly competitive and fragmented albeit leading companies continuing to consolidate their market position through high-profile and strategic acquisitions.

• A positive regulatory outlook in key markets, due to new initiatives and frameworks looking to facilitate OTC approvals, will also prompt companies to seek access to new markets.
• Drug manufacturers, regulators, and consumers are increasing pressure on pharma companies to make the Rx-to-OTC switch, as non-prescription medications are cheaper and easier to access.
• Beyond basic efficacy data, potential benefits of a switch could include increased access to treatment options, improved quality of life, improved public health, enhanced consumer awareness and involvement, or greater worker productivity
• An increasing interest in self-medication in both developed and developing countries has been identified as a major contributor to market growth in recent years
• M&A is expected to remain very active in the coming years fueled by strategic long-term commercial priorities, as companies look to increase revenues through expanded product portfolios.
• The industry is adapting to a value driven portfolio compared to volume-based approach focusing on benefits over price premium, capitalizing on consumers’ informed peer driven choices.
• This has put global players in a situation to meet fast emerging consumer needs while maintaining the quality in a continuously evolving global regulatory landscape