The medical supplies market is expected to have a 4.5% compound annual growth rate (CAGR) increase by 2028. This calculation resulted from a study by Brandessence.
The medical supply market is one of the most lucrative industries in the world. It has been experiencing a high growth rate and increasing demand for quality healthcare services in recent years. However, several factors are threatening this industry’s growth.
Panic Buying of Medical Supplies
The first key driver is panic about buying medical supplies due to the fear of running out of stocks. This increased demand for medicines and other medical supplies results in a shortage in the supply of these items. People often panic-buy when there is an outbreak of disease (COVID-19). They fear they will run out of supplies before they can replenish them, so they buy large quantities at once, leading to shortages further down the line when demand slows down again.
Rising Demand for Medical Supplies
The rising aging population and the increasing number of patients suffering from chronic and acute illnesses are some of the factors that are driving the medical supply market. The increased prevalence of COVID infections is expected to increase the demand for medical supplies across all age groups.
Hoarding Medical Supplies
In addition to hoarding by individuals, there is also widespread hoarding by hospitals and clinics that fear running out of stock during emergencies such as natural disasters or pandemics. Hospitals often stockpile many drugs, surgical equipment, and other essential medical supplies because they cannot afford stock-outs during emergencies.
However, stockpiling can affect overall supply levels in the long run because it reduces competition among suppliers, leading to higher consumer prices. In addition, hospitals may not be able to sell their excess stocks due to competition from other buyers who are also looking for these items during emergencies or natural disasters that cause shortages.
Misuse of Medical Supplies
Misusing medical supplies has become a significant concern in the healthcare industry. It is no longer just a matter of convenience or saving money, and the misuse of medical supplies has become a matter of life and death.
Increased Fear of Infection
Increased demand is also being driven by increased fear of COVID-19 infection. Most frontline workers are ill-equipped to deal with these patients because they lack critical equipment and supplies, which can cause further complications in an already difficult situation.
World Health Organization
Medical supply companies struggle to keep up with the demand for products such as masks, protective clothing, and other safety equipment—the WHO has called on them to increase production by 40% over the next three months. The goal is to ensure that there are enough supplies for everyone.
Foreign Countries
The need for medical supplies is global. Foreign countries are starting to implement export bans, so they don’t run out of essential supplies in their own countries. The result can be catastrophic for some countries that don’t have the ability or production facilities to create their own PPE supplies and equipment.
New Medical Supply Solutions
Due to so many medical supply challenges affecting healthcare around the world, over the past couple of years, there has been a rise in health tech startups like the Seattle-based bttn – a next generation healthcare supplies distributor helping small doctors’ offices to large hospitals around the US save a good 20-40% off their medical supply bills over the course of a year. Now, serving over 7,000 customers, bttn has also recently announced a fresh $20 million in funding to accelerate growth with a goal to help serve all of healthcare. This online medical supply store is definitely one to consider if you work in healthcare and oversee procuring medical supplies for your office, clinic, or hospital.
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