The growing healthcare market in India comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment. As per Invest India, the market is forecasted to grow to USD $372 billion by 2022.
The wellness market, which primarily consists of three segments- nutraceuticals, alternate therapies, and fitness and slimming, is also witnessing fast growth. According to FICCI-EY Wellness and Beauty Report, it is expected to reach USD $24 billion by 2020.
This rapid growth in the health and wellness market is being driven by various factors:
- Increasing demand for affordable healthcare delivery systems in response to the rising healthcare costs
- Rising disposable income within the Indian middle class
- Entry of private-sector investors in the new verticals of the health and wellness market
- Government initiatives, such as ‘National AYUSH Mission’, which cultivate the right environment and stimulate growth.
- Tax benefits and incentives in the healthcare market, which attract investments and create a strong foundation to sustain this growth.
For Indian consumers demanding better healthcare and wellness services, the fast expanding industry means increased choices at highly competitive prices. The consumers’ growing focus on personal and family well-being is also evident in their health and wellness spends, which have been steadily rising over the past few years.
Evolution of Consumer Spending on Health and Wellness
India’s population consists of approximately 443 million millennials who are more health conscious than the older generations. That, coupled with a growing focus on preventive health care, means that people today are willing to consistently invest in health and wellness products and services. According to a study by Numr Research, 33% Indian millennials spend almost INR 4000 per month on health and wellness. Primary spending activities include purchasing gym memberships, doing annual health check-ups, consuming nutraceuticals, and using health-tracking apps.
Moreover, Redseer Consulting reports suggest that India is home to 90 million Health Conscious Individuals (HCIs), a figure that is expected to rise to 130 million by 2020. And the expected consumer spending by this segment of the population on health and wellness products like health foods, nutraceuticals and organic beauty care is expected to be USD 30 billion by 2022.
This increased spending on health and wellness is being matched by new businesses bringing improved services and innovative delivery models into the market, leading to the emergence of entirely new, fledgling segments within the industry.
Emerging Health and Wellness Industries
Here’s a look at the new and disruptive business verticals emerging in the Indian healthcare market.
Medical Tourism is gaining traction in India. The cheaper yet comprehensive treatment options provided by medical facilities in India attract a large base of patients from South-East Asian, Middle-Eastern, and African countries. The industry is expected to reach USD $7-8 billion by the financial year 2020, as per Invest India.
Telemedicine is another vertical gaining momentum in the health market, and is forecasted to reach a market size of USD $32 million by 2020. This will enable a huge number of people in low-income areas to remotely access medical diagnosis and treatment using the advancing telecommunication technologies.
Health Information Technology and Diagnostics
Health Information Technology and Diagnostics are additional areas in India’s health market which are expanding. Integrating IT with medicine and diagnostics is increasing the accessibility of healthcare services and its efficient application.
Simultaneously, the wellness market is also seeing new introductions in the form of verticals like Nutraceuticals, Alternate Therapy, Aesthetic Dermatology, and Health Tracking Apps.
The nutraceutical industry mainly comprises functional food and beverages, and health supplements. With the rise in millennial workforce and a simultaneous increase in their purchasing power, more and more businesses are tapping into the growing market of nutraceuticals products, which is expected to reach USD $10 billion by 2022.
Alternate Therapies, which are also gaining new ground, include unconventional health systems such as Ayurveda, Yoga, Naturopathy, Unani, Siddha, Sowa-Rigpa and Homoeopathy. Along with the establishment of ‘Ministry of AYUSH’, several new e-commerce platforms such as ‘NirogStreet’ and ‘svaasth.com’, are also instrumental in generating awareness about these alternate therapies, and making them accessible to the consumers.
With the increasing importance of physical appearance in today’s society, aesthetic or cosmetic dermatology has also gained a footing in India’s wellness market. Growing acceptance of such procedures is facilitating the boom of this industry, which is already prominent in western countries. As a result, employment is expected to rise within this segment, which employed around 2000 plastic surgeons in 2016.
Health Tracking Apps
A growing need to be constantly updated about one’s health has led to a surge in the demand for health-tracking systems. Various apps and aggregators cater to this need by collecting and analysing several data points related to the customer’s health. Artificial intelligence integration is driving further development in this sector. Even traditional pharma companies are looking to offer their versions of health tracking/monitoring apps as a value-add for customers.
Spas and Fitness Centres
Spas and fitness centres are also increasingly becoming a popular choice of preventive healthcare. Regularly exercising in gyms, going to spas, and consulting dieticians to maintain a healthy lifestyle has almost become a norm, especially for the urban middle class. While this is evident in the metros, the easy accessibility to such services is also rising in the Tier 2 cities. This has allowed various new delivery formats to become available for the customers, with apps like Urbanclap and VLCC providing ‘salon at home’ experiences to the users.
These new industries are expected to contribute to the growth of the health and wellness market by a considerable amount. The government’s recent budget allocation of Rs 69,000 crore towards healthcare can also accelerate health and wellness market development.
The Indian health and wellness market will continue to grow rapidly and deliver more efficient and affordable solutions to its customers in 2020 and beyond. However, being aware of industry developments and customer expectations is going to be critical for continued success of businesses in the industry.
Keeping that in mind, HT Media, powered by Healthshots.com, is organising India’s biggest health and wellness conclave, Wellness 360°. This conclave aims to provide a platform for industry veterans, policy makers, and prominent influencers to come together and cultivate discussions which can shape the future of this industry.
Interested in positioning yourself as a market leader?