Study on the "secondary healthcare market"

• On average, adults spend EUR 900 a year on healthcare products and services – on top of their healthcare insurance
• The secondary healthcare market currently has a volume of EUR 60 billion
• There already is additional demand of EUR 16 billion – but no products and services to satisfy this demand
• There are five basic healthcare types: Very Active, Carefree Athletic, Traditional Minimalist, Foot-Dragging and Self-Aware Inquisitive
• The secondary healthcare market allows people to enjoy a healthier life and provides companies with new business opportunities
• Providers of traditional healthcare can also develop offers for the secondary healthcare market

An increasing number of people are spending more on their health. According to a Roland Berger Strategy Consultants study, each adult currently spends EUR 900 a year for medical checkups, alternative medicine, wellness, sports and health food. Private healthcare expenditures, spent in addition to health insurance, have gone up annually by 6% since 2000. In the meantime, a secondary healthcare market has developed with a current annual volume of EUR 60 billion, compared to EUR 49 billion in 2003. A survey of 1,000 18- to 70-year-olds, conducted by Synovate on behalf of Roland Berger in spring 2007, underlines this upward trend. However, supply is not meeting demand yet. Current demand is already worth EUR 76 billion.

"Almost all population groups, regardless of income, want to do more for their health and use health products and services," explains Joachim Kartte, Partner and head of Roland Berger Strategy Consultants' Pharma & Healthcare Competence Center. The topic of health is becoming an integral part of all aspects of our lives. Whether it's probiotic yogurt, non-irritable clothing or healthcare tourism – for quite some time now, the secondary healthcare market has included more than traditional add-ons such as homeopathy and voluntary preventive medical checkups. Kartte says, "The trend is obvious: everything is focusing on health."

Making the most out of opportunities in the secondary healthcare market

So far, politicians and companies have been rather lax in using the opportunities provided by the secondary healthcare market. "By specifically promoting the secondary healthcare market, politicians can kill two birds with one stone: improve people's health and create new jobs," say the healthcare experts at Roland Berger Strategy Consultants. Especially for countries with an aging population, it is crucial that people stay healthy for a long time, and that they can stay on the labor market. The secondary healthcare market also offers businesses new opportunities for launching innovative business models.

However, consumer behavior must first be identified in order to reach people with this new form of healthcare services. The Roland Berger study shows that people have very different levels of healthcare awareness. "Our survey identified five types of consumers. People in each type have similar healthcare values and needs," explains Dr. Karsten Neumann, Principal in the Pharma & Healthcare Competence Center.

The five basic types are:
Type 1: Very Active
Type 2: Carefree Athletic
Type 3: Traditional Minimalist
Type 4: Foot-Dragging
Type 5: Self-Aware Inquisitive

The five types cover in equal proportions roughly the entire population. Their health behavior is reflected across all age and income groups and levels of education. The main difference is their personal approach to healthcare questions. Whereas some eat healthy, others focus on sports or relaxation. Then there are those who actively stay informed about healthcare topics, and still others who keep procrastinating.

The five types of healthcare consumers

Very Active types do a lot of sports and are interested in wellness. They spend a lot of money on checkups and extra health insurance. Overall, they feel good and do not think too much about their health. They rarely go to the doctor.

For Carefree Athletic types, sports and exercise is an important part of their lives – and good health is more of a side effect. They rarely go to the doctor, and if they do, they are really ill. They make little or no use of alternative therapeutic methods.

For the Traditional Minimalist types, taking care of their health means going to the doctor from time to time. They do hardly any sports and are not interested in healthcare issues. To them, health means the absence of illness.

Foot-Dragging types think they should be doing more for their health, but they just can't pull themselves together. They do hardly any sports and are not interested in healthcare information.

The Self-Aware Inquisitive types are very concerned with healthcare issues in general and their own health in particular. Of the five types, they spend the most on their health.

The right products and services for every type

"Companies that want to seize the opportunities provided by the secondary healthcare market should be familiar with these basic types. This will help them target potential customers," says healthcare expert Kartte. "Self-Aware Inquisitive types, for instance, want scientifically-based information on the food that they buy," adds Neumann. "They want to be sure that they are doing the right thing for their health. They don't think advertising fads such as 'bioactive substances' or cereals are very helpful." Very Active types, on the other hand, may fancy a combined sports and wellness vacation.

When suppliers of healthcare products and services recognize their clients' needs, this is good for both business and consumers. Customers get the healthcare products and services that they want, and healthcare companies profit from the growing secondary healthcare market. According to the study, spending on preventative healthcare products has risen by 10% p.a. over the past ten years, spending on health food by 8%. Healthcare tourism is also forecast to achieve healthy growth of 8% p.a. by 2010. Other health-related offers will also continue to see robust growth, including pollutant-free building materials, ergonomic chairs, breathable clothing with UV protection ("functional clothing") as well as natural cosmetics, housing specifically designed for senior citizens and low-radiation equipment.

Secondary healthcare market also open to doctors and insurance companies

"It is important to note that the secondary healthcare market is also open to suppliers from the primary healthcare market," says Joachim Kartte. "Just think of doctor's offices in shopping centers that provide quick standard outpatient service." Traditional providers such as physicians, pharmacists and health insurance companies enjoy a competitive advantage because people believe in their expertise and trust them. What's more, they often have decades of market experience. They know that sensitive issues such as healthcare require a much more delicate approach than other consumer products and services. In healthcare, customer requirements and buying decisions simply follow different rules.