JAKARTA, Indonesia, Feb. 24, 2016 /PRNewswire/ -- Frost & Sullivan is forecasting the healthcare expenditure across all sources to rise in Indonesia in 2020. Jyoti Nagrani, Consulting Analyst, Frost & Sullivan Asia Pacific said the total healthcare expenditure as a percentage of gross domestic product (GDP) is expected to increase to 4.3 percent to reach $50.8 billion in 2020.
She added that Indonesia is gearing up for a rapidly urbanized population. Jyoti predicts 68 percent of Indonesians will live in urban areas by 2025. Jyoti said over 80 percent of Indonesians could potentially belong to the middle class by 2025. The spending power will generate an huge spill-over effect for both domestic and ASEAN economics, creating enormous business opportunities including Healthcare.
Jyoti also said that urbanization and rise in middle class, with its rather unhealthy lifestyle will drive the increase in lifestyle-related diseases, leading to an increase in demand for faster disease screening, advanced medical technologies for early diagnosis, and low cost, high quality efficacious medicines for treatment.
Jyoti said that more and more multi-national company manufacturers will jump onto the e-catalogue bandwagon alongside government's effort to accelerate the development of the e-catalogue system for e-procurement.
Jyoti also said that private hospitals will continue to expand and increasingly accept Badan Penyelenggara Jaminan Sosial (BPJS) patient. Further, she said that aged care private investment will begin to surge as the population above the age of 65 years is expected to reach 5.4 percent of total population in 2017.
Asia Pacific Healthcare Industry Predictions
Dr. Milind Sabnis, Director, Transformational Health, Frost & Sullivan Asia Pacific predicted the total global healthcare industry to grow by 6.9 percent to $1.68 trillion USD in 2016, with Asia Pacific showing double digit growth.
Dr. Milind highlighted that Asia Pacific will emerge as the epicenter for regenerative medicine and biosimilars. He said, "Asia Pacific Stem Cell therapy market was valued at $9.04 billion in 2015 and is projected to double to $18.71 billion by 2018 and innovative Asia Pacific companies will drive the global bio-similars market," he added.
"About USD 80 billion worth of biologics will lose patent exclusivity in the next five years and a number of new Asian companies and established companies such as Celltrion and Samsung Bioepis are expected to launch biosimilar version for majority of top ten biologics in 5-10 years," Dr. Milind said.
Other predictions included: introduction of new imaging systems (MRI, CT scans, etc) with options to upgrade to higher versions and new business models, in clinical pathology, that aim to increase efficiency and improve cost-effectiveness.
Megatrends Impact on Functional Food and Beverages in Asia
Frost & Sullivan forecasting the global nutraceutical market to grow to 6.0 percent to $225 billion in 2020. Dr. Satish Lele, Senior Vice President, Visionary Science Practice, Frost & Sullivan Asia Pacific said that global nutraceutical market moving to Asia due to Asia Pacific is driving global health food demand as emerging economies and growing lifestyle disease incidence drive consumption.
Dr. Satish Lele also said that globalisation driving exposure to western food habits and non-ethnic functional food options and influencing demand for convenient health foods. "As demand for naturally healthy ingredients starts to rise consumers are moving towards 'superfoods' such as quinoa, chia, blueberries. One such example is the coconut water industry which is now a 1 billion USD market", he added.
Urbanisation also has impact on the APAC nutraceutical industry. Dr. Satish said that urbanisation increases working hours, longer commutes and women in the workforce and is driving demand for convenient yet nutritious food options where traceability is key. Dr. Satish said that beverages are no longer expected to serve as adjuncts to meals but provide as much nutrition as the meal itself especially in the breakfast sector.
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SOURCE Frost & Sullivan