Opportunities for new entrants in healthcare and wellbeing

The global healthcare landscape is changing. This is happening faster than ever before. Demand pressures, funding shortages, changes in consumer expectations and technology are all fundamental to how healthcare will be delivered in the future.

How is this manifesting in the UK? What are the opportunities and challenges that new and current players in the complex ecosystem will face? How will they need to adapt?

Clearly consumer expectations are changing in all industries. They are more demanding of every service and product they interact with. They want them when it suits them, where it suits them.

As part of our global New Entrants work, we have spoken to over 2,000 consumers and care professionals in the UK to generate insights into how consumer expectations and behaviour are going to impact the health and wellbeing markets. Read our analysis in the full report here.

The UK market for healthcare and wellbeing (fitness and wellness) is large at c.£180bn and growing. There will be opportunities for new entrants to exploit. What do we mean by new entrants? These are non-traditional healthcare players who offer their brand, engineering expertise and knowledge of customers to disrupt the healthcare landscape.

New entrants will need to bring to healthcare what is already established as a core focus in most other industries: an understanding of what consumers want and what they are willing to pay for. Our research suggests consumers want healthcare at a time and place that is easiest for them. Crucially, they are willing to pay if the service is right.

The key challenge for new entrants will be the proposition. What should the service look like? How can they develop effective revenue models? What is the best way to engage with consumers and the interface with the NHS?

The wellness and fitness markets present an even bigger opportunity. Unsurprising for younger consumers, but interestingly older consumers are also willing to spend an increasing amount on their fitness and wellness, particularly diet and exercise. But they are not so confident on the how.

It can be difficult for entry level wellness consumers to find what they are looking for both in terms of equipment and advice in a way which does not apply to many younger consumers. Could a new entrant develop a proposition to address these demands? Could they break the boundaries between healthcare and wellbeing?

With a large and growing market, positive demand drivers and consumers’ expectations and willingness to pay increasing, now is the time for new entrants to examine their UK healthcare and wellbeing strategy.

Read our report here.

For more of our latest thinking on health issues that matter see our Health matters blog.

Andrew McKechnie |  Partner
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