Asia’s middle class is growing faster than any other continent in the world. By 2030, Asia is expected to contain two-thirds of the world’s middle class. A recent OECD study projected that this rising middle class will increase consumer spending in Asia from $4.9 trillion in 2009 to more than $30 trillion in 2020. That is, the Asian middle class will grow from 20% to an astounding 60% of global middle class spending.
As Asian populations become wealthier, the healthcare sector in Asia will continue its strong growth. The Economist estimates that healthcare spending in Asia has risen from 14% of the global total in 2006 to 23% in 2012. 23% is on par with Western Europe’s 24% healthcare spending share. In particular, China is expected to implement many large public health programs in managing both infectious and chronic diseases.
In recent years, several Southeast Asian countries have had high growth rates similar to China. Indonesia and Vietnam’s middle class is expected to grow by more than 10% annually for the next decade. This will triple Indonesia’s middle class by 2020. Between 2000 and 2010, healthcare spending by Southeast Asia’s middle class grew over 9% annual compound rate.
As brand-conscious Asian consumers become increasingly aware of their access to healthcare services and products in the next decade, demand will rise for Western drugs and medical devices.