Sales 2007	Medical technology	Pharmaceuticals
Worldwide:	US$ 280 bn	US$ 713 bn
North America:		US$ 304 bn
Europe:	US$ 56 bn	US$ 213 bn
Japan:		US$ 66 bn
Asia, Africa, Australia:		US$ 87 bn
Latin America:		US$ 43 bn
Investment in pharmaceuticals R&D 2006
USA:	US$ 27,7 bn
Japan:	US$ 7,8 bn
Europe:	US$ 24,7 bn

                             
Growth markets for sales/production
 
Features common to all growth markets:

• Rise in GDP and per-capita income and the introduction of health insurance is leading to an improvement in medical care
• High-tech medical products and pharmaceuticals are being imported in large quantities to improve the service offered by hospitals and medical practices  

China

• Above-average rise in demand for pharmaceuticals, medical technology and cosmetics
• Ideal conditions for research and development and the production of drugs
• Much shorter times to gain marketing authorization
• Research and development costs lower than in western industrialized countries
• Government is planning a further expansion of the healthcare system
• More people with basic health insurance thanks to the new healthcare reforms (since 04/2009)
• Per-capita consumption of cosmetics still low in comparison to Japan, but high potential for growth
• Strong expansion by foreign cosmetics firms

India

• High growth rates for pharmaceuticals and medical technology
• Strong population expansion and rising incomes
• Well educated staff and good supply of experimentees for research and development
• Strong local pharmaceuticals industry, exporting worldwide  

Russia

• Government is pushing ahead with the expansion of the healthcare system despite the economic crisis
• Hospitals and doctors poorly equipped
• Local industry lags well behind in research and development
• High import levels
• High growth rates (+30% in recent years)
• Companies working with a Russian partner can expect large orders and easier import procedures
• Relatively easy for foreign companies to gain a foothold in the Russian market
• Enormous potential for the cosmetics market  

Opportunities in established markets
 

• Rising demand for drugs, medical technology and medical equipment, because of:
• Growing proportion of the population is older
• Rising life expectancies
• Rising number of cases of chronic illness
• Tremendous rise in the number of people needing long-term care
• Rising number of people with chronic disease are being treated at home
• More willingness on the part of individuals to invest more in their own health
• Wellness and bodycare/cosmetics are becoming ever more important, including for men, and continuing into old age

USA

• Largest market for medical products
• This is where the best prices in North America are achieved
• Enormous sums are made available for research and development
• Medical care is at a high level for those who can afford it
• New sales opportunities with the introduction of healthcare for all
• Currently there is a trend towards cheaper products in the cosmetics sector, because of the economic crisis
• In the long term, there will be a higher proportion of ageing customers with high spending power
• More and more men are starting to use bodycare products
• Rising demand for higher-quality and natural cosmetics and bodycare products  

Europe

• Second largest market with further growth potentia
• lIn particular the newest members of the EU have a need to catch up in medical services
• High growth rates for non-EU states
• High level of R&D  

Japan

• Continued growth expected, because of an ageing population
• The government wants to raise the market share of generic drugs by tightening the legal framework
• Demand for cosmetics is not shrinking, but cheaper channels are being sought (internet)
• Cosmetics for men is growing in double-digit figures  

Technology trends

• Telemedicine
• Digitalization of healthcare
• Regenerative medicine
• Prosthetics and implants
• Ongoing development of new products, active ingredients and ways of administration
• Biotechnology and genetic technology (still in the early stages of development) have good prospects for the future  

Commercial trends

• New manufacturing techniques and improved production processes are increasing quality and volumes and reducing production costs
• Continual rise in sales
• Relatively crisis-proof
• Sales are still concentrated mainly in the industrialized countries with good medical care services
• Demographic change in the industrialized countries will also have a positive impact on sales
• The opening up of new markets for pharmaceuticals and medical technology is very dependent on procedures for authorization and sales channels
• Increases in prosperity and life-expectancy in a country also bring an increase in sales of medical, pharmaceutical and cosmetic products
• High market potential in the growth countries  

Sources: BPI, German Trade and Invest, VDMA Verpackungsmaschinen