Booming private health insurance membership numbers have driven growth, as many policies have been offering alternative treatments as part of extras cover
Melbourne, Australia (PRWEB) November 28, 2014
The Alternative Health Therapies industry has undergone healthy growth over the past five years. The industry has been buoyed by the population's increasing acceptance of therapies that are either alternative to conventional Western medicine or complementary to conventional treatments. According to IBISWorld industry analyst David Whytcross, “industry revenue has been further boosted by the ageing population and growing private health insurance membership.” Meanwhile, improving economic conditions following the global financial crisis have also helped stimulate revenue growth over the past five years. Overall, industry revenue is expected to rise by a compound annual 4.0% over the five years through 2014-15, to reach $3.9 billion. Increasing market saturation is projected to result in more subdued 2.6% revenue growth in the current year.
The industry includes many products and services, most of which have grown 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 many to use alternative health therapy. “This is particularly the case with palliative care, as patients are often treated in tandem with conventional medical practitioners,” says Whytcross. Booming private health insurance membership numbers have also driven growth, as many policies have been offering alternative treatments as part of extras or ancillary cover, diminishing the cost of visiting alternative therapists. Furthermore, increasing discretionary income and consumer sentiment have enabled more consumers to pay the out-of-pocket costs associated with treatments that are not covered by private health insurance. Over the next five years, the efficacy of alternative health therapies is likely to come under spotlight, 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 industry. However, with key external trends persisting, industry revenue is expected to continue rising.
The Alternative Health Therapies industry is characterised by a low level of concentration. This is largely due to the significant number of different treatments that are available under the banner of alternative therapies. The majority of operators are sole proprietorships that specialise within a single discipline, preventing them from expanding their market share significantly. The average size of industry establishments is extremely small, indicating the high degree of fragmentation throughout the industry. The industry is estimated to employ only 1.13 workers for each establishment, indicating that the majority of firms are non-employing and run by a single individual. Similar types of establishments are scattered throughout Australia, with few examples of companies having expanded their market share through franchise operations.
For more information, visit IBISWorld’s Alternative Health Therapies industry in Australia report page.
Practitioners in this industry primarily deliver treatments that are not commonly practiced under mainstream Western medicine. These 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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Products & Services
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