Top 5 Trends in Australian Health Expenditure to Attach Your Private Label Brand To
If you're looking to start a private label brand centred around health benefits and creating products that positively impact your consumer, the best way to do this is by looking into health expenditure trends in your location.
In this article, we will cover the different aspects contributing to our total health spending and how you can apply these health expenditure trends to your private label brand.
What is the trend in Australian health expenditure growth?
In the modern-day age, the number of us who are conscious of our health is consistently growing. We take notice of our diets, skincare, and fitness more now than ever. And as our concern grows, as does our health spending, as we seek the best healthcare products and services on the market that really make a difference.
When you think of health spending, your mind may first jump to thinking about health goods and products we consume daily. However, according to the Australian government, in 2022, the major driver for our current health expenditure is medical services.
This national health expenditure is, of course, reflected by the government, too. The Australian government aims to provide for and improve national health. Some ways this is done is through providing the pharmaceutical benefits scheme and additional funding for hospitals, medical services, and health services as a whole.
What are the current trends in health spending?
As total health spending by the government is mainly distributed on medical services, you may be wondering what this means for the individual person. According to the Australian government, in 2019-2020, the average health spending per person was $79629. Health spending increased in these years by 0.2% and has, of course, increased since due to factors such as Covid.
The figure above may seem like a hefty sum for one person to be spending on health, but we must take into account that this umbrella term is vague and includes many factors, such as; health goods, dental services, private health insurers, health accounts, medicare expenses, health insurance, and other private sources.
What is the pharmaceutical benefits scheme?
This scheme was introduced in Australia to offer financial support to those requiring prescription medication. In addition, this scheme helps the total out-of-pocket prescriptions and medications in Australia keep at bay, further helping families financially.
This is important to note when looking into expenditure, as the Australian government takes this duty seriously and aids many low-income earners each year with this scheme. In addition, PBS subsidised medications are available to those visiting Australia from certain countries to ensure anyone travelling here can access the medication they need at a more affordable rate.
How are total health spending growth rates measured?
When it comes to health spending, these rates are measured by the Australian Bureau of statistics which carries out social and economic measures on the healthcare industry. They are responsible for studying the reasons that health spending increased by keeping up with regular reporting and focusing on data provided by the Australian System of National Accounts. These annual reports are brought to us by the Australian Institute of Health and Welfare and are vital to look into if you are considering entering the health care profession.
When we bear all the above information in mind, it becomes clearer that over time, our total spending will change when different services and products are offered to us, no matter the circumstance. Whether we opt to use private sources or public hospitals, there will be a cost involved that affects the overall expenditure of each person.
But is there a way that you can use Australia's health expenditure to create an impact and change your organisation or brand?
How to use health expenditure to positively impact your brand
Of course, you can't become a magician and turn your business into a hospital, and it may seem like a confusing concept to use health expenditure to your advantage. But, there are ways that you can study health expenditure trends to influence your brand's decisions when it comes to ingredients and products.
When bearing this in mind, you can reach many different sectors and consumers that you may have otherwise left out. This makes your private brand more inclusive whilst generating more revenue. Here are some of those ways;
Cater towards the ageing population
As we age, our health concerns are likely to grow, further affecting our spending on health. The ageing population affects health care expenditure as their needs are constantly changing and evolving at a more rapid rate than younger groups. For example, an elderly patient will be more likely to need more extensive and frequent prescriptions, equating to more money spent.
Therefore, if you have a private label brand that doesn't cater some of your services and products to this community, you are shooting yourself in the foot.
Tailoring your product line toward mature skincare needs will allow you to include and help a section of the population that is too often forgotten about. Looking into the needs of ageing skin and essential ingredients that can combat this is a must to ensure you execute this in the best way possible.
Explore small markets
Although the ageing population is a significant factor in health expenditure, there are many other trends of spending that include different groups of people. For example, those who suffer from chronic illnesses will have to visit hospitals and general practitioners more often than those who don't. And many turn to private sources to receive help too.
If you research these communities and gain an understanding of their needs, you can tailor your products to this. Creating formulations with specific ingredients that meet those needs can set you apart from competitors who don't bear health benefits in mind when making their products.
Consider a niche product
Many times, when it comes to buying products, we often don't delve into the ingredient list to really understand the benefits. And, with cosmetics products, we usually buy these for how they look and work rather than how they affect us.
For example, imagine using hair care products that really made a difference to the condition of your skin and hair. Innovative formulations can positively impact consumers and help manage health conditions they may suffer from.
Say you suffer from scalp acne; you may be finding it difficult to find products or clinics that honor your condition. Creating a haircare product with cucumber liquid extract can help to soothe irritated skin and calm down any flare-ups. You will widen your consumer range by tailoring ingredients to help conditions and make a difference to people. So consider researching different products that can help keep medical conditions at bay.
Mental health is just as prevalent as physical health
When thinking about health spending, it is likely that our minds quickly overlook that mental health is a massive factor in modern-day primary health care. Due to factors such as the pandemic, mental health services, and prescriptions have risen, and there is a need for products that can benefit those suffering from mental health issues.
Creating products with this in mind may seem challenging, but it is possible.
For example, if you want to make perfume or body sprays, adding essential oils into the mix that provide health benefits is easy. Lavender essential oil offers a calming response when used and can be a huge help to those suffering from anxiety. Consider looking into various essential oils and ingredients that have proven positive impacts on mental health, and see what you can do with them!
Lifestyle markets factor into health care
We can't forget that many young people who may not suffer from any specific conditions are also increasingly taking an interest in their health and welfare at a consistent rate. From pressures on social media to genuine concern for being healthy, there is a large market for Gen Z and Millennials who are interested in health.
A significant portion of this community is those who are interested in fitness. People with an interest in fitness may often spend time considering their total health and can often look into dietary needs when training.
Ingredients such as Spirulina Powder can be used in protein shakes and in supplements to provide consumers with nutrients, vitamins, and protein while giving an antioxidant effect to the body.
You can look into these ingredients further and see if you can make any exciting product ranges that can stand out in the saturated fitness industry whilst providing benefits to consumers and fitness lovers.
When considering health expenditure as a factor in your private brand, there are many to choose from that can impact your revenue and consumer demographic. Remember to study and research whichever healthcare aspect you want to include in your private brand, and see how you can make your products as unique as possible!
Frequently Asked Questions
Why is health expenditure increasing?
As population growth rates continue to increase and our ageing population increases, health expenditure rises as a result. The government and individual patients are continuously increasing health spending each year.
What are the health trends in Australia?
According to the Australian government, several health conditions are statistically more common in the population. These include obesity, chronic diseases, and mental health issues.
Is health spending increasing this year?
Due to factors such as the coronavirus pandemic, health spending has increased rapidly in the past few years. This is due to testing, tracing, and facilities having to be introduced and adopted.