A Giant, Growing Opportunity
The global allergy and asthma treatment market is growing at an unprecedented rate. Are you part of this growth revolution?
The allergy treatment market was valued at US$15.1 billion in 2019, and it is expected to reach US$21.8 billion by 2025, registering a CAGR of 6.30%. That is huge. The rising cases of allergies are expected to increase the demand for treatment in all types of allergic diseases, such as asthma, conjunctivitis, and more.
Allergy is a condition in which the body immune system reacts abnormally to a foreign substance. It is very common and its treatment involves drug and therapies that help to reduce the symptoms or help our immune system better prepare for future encounters. Rhinitis, also known as hay fever, can affect up to 10~30% of adults and up to 40% of children globally. Rhinitis itself has a 6.37% CAGR, growing to US$16.1 billion in 2025. Asthma, on the other hand, affects as many as 339 million people worldwide. Asthma treatment market grows at 6.18% CAGR, expecting to reach US$2.7 billion in 2025.
It is interesting to note that the events in the last 5 years have greatly accelerated the push for faster and greater adoption of allergy treatment. For example:
- The increasing importance of self-medication, which avoids medical prescription and allow patients to control their own conditions, which can create bigger cost savings.
- More people every year is suffering from food allergies worldwide. In the US alone, 32 million people have this, including 5.6 million children under the age of 18. In Europe, more than 150 million people suffer from this.
- Rising investments by manufacturers on the development of novel allergic treatment. In this clinical space, many companies are developing advanced therapies, such as digital healthcare and therapeutics (DTx).
North American Market (US & Canada)
Allergy is a common health issue in the US. According to the Asthma and Allergy Foundation, in 2018, allergy was the 6th leading cause of chronic illness. Also, according to the CDC, in 2018, more than 25 million Americans had asthma, which includes 7.7% of adults and 8.4% of children. This means 1 in 13 adults and 1 in 12 children in the country has asthma. Numerous drugs are currently under development, but in recent years, many major players are now shifting towards digital healthcare products. For example, Propeller Health received FDA approval for its methods to treat COPD patients. The US market is growing at CAGR 6.39%, expecting to hit US$6.4 billion in 2025.
In Canada, over 3.8 million people suffer from asthma, roughly 10% of the population. Growth is at 6.67%, expecting to hit US$1.3 billion by 2025.
European Market (UK, Germany, & France)
UK, Germany, and France will be the top 3 markets. According to Asthma UK, in 2017, 5.4 million people had asthma, including 1.1 million children and 4.3 million adults. The UK market is expected to grow at 6.52% CAGR, reaching US$1.5 billion by 2025.
In Germany, according to the Allergo Journal International by Bergmann KC, in 2016, 20% of Germans suffer from allergy and large portions of the population, around 10%, are not treated appropriately. Germany is growing at 6.4% CAGR, reaching US$1.2 billion by 2025.
In France, according to The Journal of Allergy and Clinical Immunology by Arnaud Bourdin, in 2019, about 0.2~0.5% of adults have severe asthma. 20% of the population other forms of allergies, with children making 7~8% in 2015. France is growing at 6.28% CAGR, reaching US$1 billion by 2025.
East Asian Market (Korea & Japan)
According to Dai-Ichi Life Research Institute, Tokyo spends US$7 million a year replacing pollen trees with other trees that have fewer pollens since around 25 million Japanese suffer from hay fever annually. Japan allergy treatment market is growing at 6.77% CAGR, reaching US1.3 billion by 2025.
South Korea has made great progress in its allergy treatment technology, despite a short history. According to recent research, asthma affects 4~6.7% of children in Seoul between 2011 and 2017. With the high prevalence, there is a rising number of treatments being available. South Korea is growing at 6.21% CAGR, reaching US$520 million by 2025.
So what does this all mean?
The digital healthcare market, of which digital therapeutics (DTx) is a growing subcategory, is a primary momentum that is generating most of this CAGR worldwide. In light of the COVID-19 pandemic, more and more DTx solutions device are being fast-tracked by the FDA in order to better treat patients with severe chronic conditions.
Here at Brilliant and Company, we are developing PiCO GO, a DTx for childhood asthma patients. With PiCO GO, we integrate everything we’ve learned from PiCO Home (environmental sensors such as PM 2.5, VOCs, etc…) and add biometric sensors (e.g. heart rate).
PiCO GO will help millions of children.