Over the five years to 2012, the Homeopaths industry has grown at a rapid pace, bolstered by increasing consumer acceptance of alternative therapies such as homeopathy. Defined as the practice of alternative medicine that aims to stimulate the body's innate healing processes, an estimated 4.8 million people used homeopathy in 2006, according to a 2007 survey (most recent data available) by the Centers for Disease Control and Prevention (CDC).
IBISWorld research indicates that these numbers have only grown, with revenue generated by homeopaths projected to increase at an annualized rate of 7.6% to $339.9 million over the past five years, including anticipated growth of 7.2% in 2012 alone, according to IBISWorld industry analyst Anna Son.
Organizations such as the Council of Homeopathic Certification (CHC) have worked hard to create Homeopaths industry standards and licensing professionals for the practice. This helped spur demand and create an avenue for more homeopathic professionals in the United States, Son says. Over the five years to 2012, the number of industry establishments, which represents those establishments whose primary business activity is homeopathic care, has grown at an annualized rate of 3.8% to an estimated 3,914. Although significant concerns continue to exist about the legitimacy and efficacy of homeopathy 200 years after its development, a slowly growing percentage of the population is turning to industry providers for healthcare. During the five years to 2012, IBISWorld estimates that the percentage of the US adult population that uses homeopathy has increased to about 2.7%, up from 1.9% in 2007, based on data from the American Medical Association and the CDC.
Industry growth is expected to continue over the five years to 2017, albeit at a slightly slower pace than over the past five years. The industry will continue to benefit from increasingly favorable attitudes toward homeopathy. The mounting incidence of disability, the aging population and rising disposable income will significantly contribute to revenue growth. During the next five years, IBISWorld projects that revenue will increase. Growth is forecast to decelerate in 2014, though, when health insurance exchanges are set to be established in line with the healthcare reform legislation of 2010. The rising number of insured people will dampen demand as more people gain access to conventional healthcare.
The Homeopaths industry is highly fragmented, much more fragmented than conventional healthcare, with no firm generating a significant share of revenue. Most establishments are sole practitioners.
For more information, visit IBISWorld’s Homeopaths in the US industry report page.
24 July 2012