Pain Management: The Next Big Healthcare Subsector?
Exploring the rising potential of pain management as a key healthcare subsector in India and its opportunities for innovation.
Hi there!
This week on Eximius Echo, we dive into the emerging potential of pain management as a key healthcare subsector. With rising life expectancy and growing demand for quality care, pain management is becoming crucial for addressing the needs of an ageing population. We explore the current market landscape, challenges, and opportunities for innovation in this evolving space.
If you’ve not heard of us, Eximius is a pre-seed stage fund focusing on FinTech, SaaS, Consumer, Online Media & Gaming, and HealthTech. You can find out more here. This newsletter is an attempt to share ideas, insights, and context within the realms of our chosen sectors. Let’s dive in.
With a population as large as ours, few sectors hold the fundamental importance of HealthTech. To leverage the considerable resources and ambitions we possess as a country, it’s crucial to create a healthcare framework that spans our varied geographies and provides access to quality care, supporting people even as they age. As disposable income has increased consistently, so has the desire for higher-quality healthcare services.
In recent years, substantial investment from both the private market and the government has empowered this sector and amplified its reach. In 2023, the sector saw a deal value of $4.6 billion, the highest in the Asia-Pacific region. Budget allocations for the sector increased by 12.6% YoY against 2023-2024 to over USD 11.3 billion (assuming USD/INR = 80). With greater capital flowing into the country, there is an increased focus on the healthcare sector from investors and the government. This has led to significant innovations in both the quality and accessibility of healthcare, improving outcomes notably.
As healthcare access increases, life expectancy is expected to rise. However, with this comes a new problem. As people age, they require solutions to mitigate pain and mobility issues linked to ageing and sedentary lifestyles. A study shows over a third (36.2%) of older adults in India experience pain, with over a quarter (25.2%) facing pain that limits their usual activities. While more than 50% of the population is currently under the age of 25, 20% will be elderly by 2050. Thus, it’s crucial to develop frameworks to support pain management as this issue grows.
What Does the Industry Look Like?
India’s physical rehabilitation market covers care including surgery, services, and products for pain relief. Specifically, the segment providing pain relief via physiotherapy for arthritis, injury, etc., is projected to reach $35.1 billion by 2028, with pain relief contributing 18% ($6.32 billion). In 2023, the industry was worth $17.1 billion, with pain relief representing 21% ($3.6 billion). This sub-segment is growing at a CAGR of 11.91%.
The analgesics (pain medication) market reached a Moving Annual Total (MAT) of $1.63 billion in April 2023, driven by post-Covid demand for pain relief due to body pain and inactivity during lockdowns. Long-Covid symptoms, like body aches and fatigue, further boosted this demand. Serious surgeries, such as rotator cuff repairs, are growing at 15% YoY (2022-2024), increasing the need for pain medications. Post-Covid, health awareness surged, with 51% prioritizing health (up from 11% pre-Covid), and 83% of people now using pain or muscle-related medication for better quality of life.
Physiotherapy, another key part of pain relief, faces a significant supply shortage. There are only 0.59 physiotherapists for every 10,000 people in India. Since they treat a wide range of conditions related to the musculoskeletal, circulatory, respiratory, and nervous systems, developing a robust network of personnel and increasing consumer awareness about physiotherapy is essential.
Despite the progress, much remains to be done. Notably, awareness is evenly spread across the country, with 70% of the current market outside the top 10 cities.
The Way Forward
The main challenge is addressing the supply shortage of physiotherapists. This requires industry-level efforts to streamline curriculum and admissions processes to create quality personnel, as well as social efforts to integrate physiotherapy into traditional hospitals for easier onboarding and a more comprehensive, value-based care approach.
While customer awareness has driven demand for analgesics, the recognition of pain relief as a central government responsibility only occurred a decade ago, which opened the market. As a result, there is still hesitancy among physicians and patients when it comes to recommending analgesics. Greater awareness efforts are needed for physicians as well.
Greater regulatory clarity, a stronger physiotherapy framework, and better integration with traditional care will make pain management a prime area for innovation and startups. This will help address the needs of an ageing population. Startups can tap into this by offering holistic, omnichannel pain management services while upskilling practitioners. Pain relief is also one of the most profitable subsegments, with gross margins of 40-45%. Although customer LTV is relatively low at $70-90, it boasts the second-highest margins in the physical rehabilitation market.
Conclusion
Pain management is a major challenge in India. With increasing life expectancy and widespread lifestyle issues, the population needs comprehensive solutions for healthier living. While segments like analgesics and surgeries are growing rapidly, more investment is needed to tackle the shortage of physiotherapists and better integrate them into the healthcare system. With the right focus, pain management could become a lucrative healthcare subsector with significant market potential.
If you are building in pain management or any other subsector in healthcare, we would love to chat! Please reach out to us at pitches@eximiusvc.com.