The industry has been bolstered by the higher average selling price of, and increasing demand for, advanced wound care products
Los Angeles, CA (PRWEB) January 06, 2012
The Wound Care Product Manufacturing industry has expanded in the past five years. According to IBISWorld industry analyst Nima Samadi, between 2006 and 2011, revenue has increased at an average annual rate of 3.3% to total $4.4 billion. In 2011 alone, revenue is set to grow 5.2%. Samadi adds "the industry has not experienced double-digit growth since 2006 due to mounting competition, consolidation and healthcare cost-control efforts. Nonetheless, sales are increasing, particularly bolstered by an aging population that faces more health problems. This age group contributes significantly to demand for wound care products, especially for those associated with chronic conditions, such as diabetes, obesity, heart failure and chronic wounds. This industry has also been bolstered by the higher average selling price of and increasing demand for advanced wound care products."
Between 2011 and 2016, revenue is forecast to grow at an average annual rate of 7.3%. The industry, however, will have to contend with the changing regulatory environment says Samadi. The Patient Protection and Affordable Care Act of 2010 will place an excise tax on medical devices and supplies, including wound care products, which will put downward pressure of profitability. Also, potential reform to the approval process for new devices will likely hamper innovation and encourage more companies to shift functions, like manufacturing and research and development, to emerging markets such as China and Brazil. Despite these factors, rising demand for advanced wound care products combined with a growing number of insured Americans (both by the government and privately) will result in the number of establishments growing at an average annual rate of 0.8% through 2016.
"Industry market share concentration is low", added Samadi. "The top four players account for less than 40.0% of total revenue. However, over the five years to 2011, concentration has increased slightly. Large companies have expanded their wound care product offerings and the revenue they earn from this segment. Additionally, some players have acquired new operations. For example, major player Johnson & Johnson acquired Pfizer Inc.’s healthcare segment in 2007, which helped increase its presence in this industry." Over the five years to 2016, concentration is likely to increase as the largest players take on more of the wound care product manufacturing due to their economies of scale. As well as Johnson & Johnson, other major industry players include Smith & Nephew and The 3M Company.
For more information visit IBISWorld’s Wound Care Product Manufacturing industry report
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The Wound Care Product Manufacturing industry manufactures products that protect injured part of the body and restore the continuity of surfaces of the body.
Wound Care Product Manufacturing Industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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