|[November 27, 2012]
China's Two Healthcare Markets: $64 Billion in Rural Spending and Rapid Urbanization
BOSTON --(Business Wire)--
The world's most populous country and the one with the largest aging
population - 300 million aged 65 or over by 2030 - represents one of the
most exciting markets for healthcare companies. However, two very
different markets are emerging - a Western-style market in cities and a
Third-World-style market in its villages - presenting a unique testing
ground and opportunity for developing a range of healthcare solutions,
"China is bifurcated into two distinct healthcare and biopharmaceutical
markets. The urban market is rapidly growing due to young people
migrating to cities, and developing western-style illnesses such as
obesity and diabetes. On the other hand, a large rural population
primarily suffers from Third-World diseases with less access to health
resources," said Zhihao Yu, Lux Research Analyst and the lead author of
the report titled, "China:
One Country, wo Health Care Markets."
Lux Research analysts built a model to assess the market based on the
Chinese government's plans. Among their findings:
Rural hospital income set for leap. Rural healthcare spending
has historically lagged investment in urban healthcare, but a new
state effort to redress the imbalance will see rural healthcare
doubling to 400 billion RMB ($64 billion) by 2015; the rural
healthcare market is predicted to grow nearly twice as fast as the
urban market - 18% vs. 10%.
Villages need low-cost solutions. Rural populations favor the
application of medical devices - for instance, joint replacement
versus long-time chronic pain management - due to limited incomes.
China's proposed insurance program for the rural populations, the vast
majority of which has no coverage, offers new opportunities to
Cities need westernized models. Urban populations with a
growingly western lifestyle suffer from diseases and syndromes such as
childhood obesity and diabetes, exceeding rates in the U.S. In
addition, pollution is increasing the prevalence of respiratory
disease, as the market cries out for western-style models.
Dual development strategy. Solution providers with vision and
healthy balance sheets have the opportunity to pursue a dual
product/service development strategy that addresses both rural and
urban healthcare needs. China represents a unique crucible where both
incremental and disruptive innovations can be successfully absorbed by
its two markets.
The report, titled "China: One Country, Two Health Care Markets," is
part of the Lux Research China
BioPharma Intelligence service.
About Lux Research
Lux Research provides strategic advice and on-going intelligence for
emerging technologies. Leaders in business, finance and government rely
on us to help them make informed strategic decisions. Through our unique
research approach focused on primary research and our extensive global
network, we deliver insight, connections and competitive advantage to
our clients. Visit www.luxresearchinc.com
for more information.
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