IBISWorld Market Research
Many insurance policies offer alternative treatments as part of extras or ancillary cover.
Melbourne, Australia (PRWEB) May 09, 2014
The availability and acceptance of services from the Alternative Health Therapies industry in Australia have increased strongly over the past five years. Alternative health therapies included in the industry are positioned as either alternatives to conventional Western medicine or complementary to conventional treatments. According to IBISWorld industry analyst David Whytcross, “while the increasing acceptance of alternative therapies has had a strong influence on revenue, industry revenue has also grown due to the ageing population and surging private health insurance membership.” Despite growth being stifled in the aftermath of the global financial crisis due to low consumer spending, the industry has bounced back and revenue is forecast to grow at a compound annual rate of 4.1% over the five years through 2013-14. This includes growth of 5.1% to $3.8 billion in 2013-14.
The industry includes many products and services, all of which have tended to grow over the past five years. Australia's ageing population has helped drive revenue growth as the higher frequency of illness for those over 50 years of age has led to many using the services of alternative health therapists. This is particularly the case with palliative care, as patients are often treated in tandem with conventional medical practitioners. “Booming private health insurance membership numbers have also driven growth, as many policies offer alternative treatments as part of extras or ancillary cover, diminishing the cost of visiting alternative therapists,” says Whytcross. The industry is characterised by a low level of market share concentration, with no major players.
Over the next five years, a greater spotlight is likely to be shone on the efficacy of alternative health therapies, as most are not scientifically proven. Further research to assess the efficacy of alternative treatments will either help legitimise or disprove many alternative health theories. A Federal Government review into the efficacy of treatments poses a significant threat to the Alternative Health Therapies industry. However, with key external trends persisting, industry revenue is expected to continue rising. These trends include the ageing of the population and increases in total health expenditure, some of which will be met by alternative health therapies.
For more information, visit IBISWorld’s Alternative Health Therapies report in Australia industry page.
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IBISWorld industry Report Key Topics
Practitioners in this industry primarily deliver treatments that are not commonly practiced under mainstream Western medicine. Alternative therapies are intended to either complement Western medicine or as an alternative form of treatment. The industry includes treatments such as acupuncture, traditional Chinese medicine, aromatherapy and homeopathy.
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