The Wound Care Product Manufacturing industry has enjoyed revenue growth recently and will continue expanding in the years ahead. Since 2006, revenue has increased at an average annual rate of 3.3%, and sales are expected to have grown by 5.2% in 2011 alone to $4.4 billion. This growth was driven by an increase in demand for advanced wound care products that are used by hospitals and doctors due to a rise in chronic conditions, such as diabetes and obesity that often necessitate the regular use of wound care products. The aging US population is a major factor driving demand, as the occurrence of health issues that require wound care products is higher in elderly populations. This demographic is forecast to expand as a percentage of the total population during the five years to 2016, which will help maintain industry growth.
Los Angeles, CA (PRWEB) January 06, 2012
Between 2011 and 2016, revenue is forecast to grow at an average annual rate of 7.3%. The industry, however, will have to contend with the changing regulatory environment says Samadi. The Patient Protection and Affordable Care Act of 2010 will place an excise tax on medical devices and supplies, including wound care products, which will put downward pressure of profitability. Also, potential reform to the approval process for new devices will likely hamper innovation and encourage more companies to shift functions, like manufacturing and research and development, to emerging markets such as China and Brazil. Despite these factors, rising demand for advanced wound care products combined with a growing number of insured Americans (both by the government and privately) will result in the number of establishments growing at an average annual rate of 0.8% through 2016.
"Industry market share concentration is low", added Samadi. "The top four players account for less than 40.0% of total revenue. However, over the five years to 2011, concentration has increased slightly. Large companies have expanded their wound care product offerings and the revenue they earn from this segment. Additionally, some players have acquired new operations. For example, major player Johnson & Johnson acquired Pfizer Inc.’s healthcare segment in 2007, which helped increase its presence in this industry." Over the five years to 2016, concentration is likely to increase as the largest players take on more of the wound care product manufacturing due to their economies of scale. As well as Johnson & Johnson, other major industry players include Smith & Nephew and The 3M Company.
For more information visit IBISWorld’s Wound Care Product Manufacturing industry report
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The Wound Care Product Manufacturing industry manufactures products that protect injured part of the body and restore the continuity of surfaces of the body.
Wound Care Product Manufacturing Industry Report Key Topics
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
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