Healthcare expenditure

The US spends about $2 trillion (Rs 9,423,500 crore) annually on private healthcare.
India spends close to $34 billion (Rs 160,000 crore) annually on healthcare.
The per capita healthcare expenditure in India is $20 (Rs 944) as compared to $2,548 (Rs 120,300) in the US.
India has just 0.7 beds per 1,000 population while the US averages 3.2 beds per 1,000.
Indian healthcare expenditure needs to increase to cater to the 190 million senior citizens by 2028.

THE HEALTHCARE AND BEAUTY PRODUCTS MARKET IN INDIA

The market for health and beauty products currently stands at $24 billion.

Organised retail formats contribute to a mere 1-1.5 per cent of healthcare and beauty care product category sales, while the share of organised retail trade format in India is 3-4 per cent of total retail sales.

There has been a shift in consumer mindset from “curative” to “preventive” with 14 per cent of the healthcare spending on preventive healthcare.

The personal care and grooming industry is also growing, with 2.1 per cent share of total household wallet of Indian consumers going to personal care.

The category mix is also evolving with the pharmacy component decreasing from 80 to 50 per cent, and the health and beauty segment increasing.

Moreover, impulse purchase items mainly from the FMCG stack are becoming the drivers for improving bottom lines.

All India sales from chemist stores in 2010 is expected to be Rs 49,000 crore ($10 billion).