Pharmaceuticals & Healthcare Boom on Taiwan's Healthcare Market
One man's joy is another man's sorrow: Although a challenge for the national government, a growing aging population combined with the country’s universal healthcare system means that Taiwan’s pharma and healthcare market can expect significant growth in the future, says the latest report by industry analysts Globa Data.
London/United Kingdom – According to the study, Taiwan’s pharmaceutical industry is predicted to climb from a $3.8 billion valuation in 2011 to $4.8 billion by 2020, while the medical devices industry is expected to reach $3 billion by the end of the decade from a 2011 valuation of $1.9 billion.
Global Data’s report states that the country’s aging population will be an important factor in driving this growth, with just under 11% of Taiwan’s residents above the age of 65 last year. Taiwan’s population increased slightly between 2005 and 2010, from 22.8 million to 23.2 million, but this growth was mainly down to a longer national life expectancy, as the birth rate fell from 9.1 per 1,000 population in 2005 to 7.2 per 1,000 population in 2010.
Taiwan’s Over-65 Population to Expand
Taiwan’s over-65 population will expand still further, states Global Data, accounting for 13% of the country’s people by 2020. Correspondingly, Taiwan’s disease burden is forecast to increase, placing greater strain on the National Health Insurance (NHI) system and its commitment to universal healthcare. According to Taiwan’s Department of Health (DoH), healthcare expenditure as a percentage of Gross Domestic Product (GDP) will climb from 6.6% in 2011 to 7.2% by 2020. However, despite Taiwan’s compulsory insurance policy, out-of-pocket expenditure in the country is high, representing 36.4% of total health spending in 2010.