South Africa Hospital Supplies Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The South African hospital supplies market studied is anticipated to register a CAGR of nearly 5.3% during the forecast period.

The COVID-19 pandemic had a significant impact on the market studied. The healthcare market was initially disrupted following the strict lockdowns and shutdowns in South Africa. Major companies witnessed a loss in terms of revenue during the beginning of the pandemic. According to statistics released by Statistics South Africa in September 2021, the gross domestic product shrank by 7%, compared to the 0.2% expansion in 2019, due to a decline in activities from industries, commerce, restaurants, and hotels. However, initiatives by various organizations are expected to increase market growth. For instance, in January 2022, a press release by UNICEF stated that UNICEF supported the rollout of the COVID-19 vaccination program that scaled up in mid-2021. This included social listening, data collection, evidence collection, and community engagement, such as the UNICEF 'multimedia truck' and the Zwakala campaign, which encouraged vaccination and non-pharmaceutical COVID prevention. Additionally, the World Health Organization is assisting the country in increasing hospital beds by acquiring mobile field hospitals that may be put up in the most impacted districts. Therefore, COVID-19 has significantly impacted the South African hospital supply market due to the rise in adoption of hospital equipment.

One of the major factors responsible for the growth of the hospital supply market in South Africa is the increasing prevalence of chronic diseases. According to the estimates of the Global Cancer Observatory, in 2021, there were an estimated 108,168 new cancer cases diagnosed and 56,802 cancer deaths in South Africa. Breast cancer was the most prevalent cancer among white and Asian women and the second-most common cancer among black and colored women. According to GLOBOCAN 2021, around 15,491 new breast cancer cases were reported in South Africa. Growing cancer cases require constant monitoring, diagnostics, and surgical needs, which will increase the growth of the hospital supply market in the country. ​ ​

Additionally, the strategic initiatives taken by the market players are also propelling the growth of the market. For instance, in May 2021, GE Healthcare and NSIA Banque Côte d’Ivoire partnered with IFC’s Africa Medical Equipment Facility to support healthcare providers in the region. This would provide support to small healthcare providers in the country.

With all of these things in mind, it seems likely that the market will grow during the forecast period. However, the growing popularity of home healthcare services may hamper the growth of the market.

South Africa Hospital Supplies Market Trends

Syringes and Needles are Expected to Hold a Significant Market Share Over the Forecast Period

Syringes are the tools used for injecting or collecting fluids surgically. It consists of a stopper to prevent the medication from leaking, a barrel to hold the fluid, a flange to allow the user to hold the syringe securely, and a plunger rod, which is a device that presses the fluid through the needle. Needles are classified according to their length and diameter. The diameter is measured in gauges; when shopping for needles, it is important to know that the larger the gauge of the needle, the smaller the diameter. A higher gauge will cause less pain and bruising during the injection.

Growing diabetes cases, as well as other chronic diseases such as diabetes, are the primary reasons for the segment's growth in the country, as diabetes medication frequently requires syringes and needles.For instance, according to the data published by the IDF Diabetes Atlas, in South Africa, the age-adjusted comparative prevalence of diabetes in 2021 is 10.8% and is estimated to reach 13.0% by the year 2045. Diabetes patients require routine injections of insulin in addition to a healthy diet. Hence, growing diabetes will also increase the demand for hospital supplies such as syringes and needles.

In addition, increasing vaccine development in the country is another factor in market growth, as increasing vaccine production would increase its consumption in the country, which would require syringes. For instance, in March 2022, Biovac partnered with a consortium of nine development and financial institutions in South Africa to support the company’s vaccine manufacturing expansion. Similarly, in September 2021, Dr. Patrick Soon-Shiong and NantAfrica launched an ambitious initiative to build capacity for advanced health care in Africa. NantWorks LLC signed a collaboration agreement with the CSIR and the SAMRC to initiate the transfer of biologic manufacturing technology for COVID-19 and cancer vaccines and next-generation cell-based immunotherapies that enable the rapid clinical development of next-generation vaccines for infectious diseases and cancer at centers in South Africa. Furthermore, in July 2021, Biovac entered into an agreement with Pfizer to manufacture up to 100 million doses of the Pfizer-BioNTech COVID-19 vaccine for use exclusively in Africa. Thus, such initiatives are expected to increase market growth over the forecast period.

Operating Room Equipment Segment is Expected to Have Significant Growth Over the Forecast Period

Factors such as the increasing prevalence of diseases such as HIV and the increasing number of hospitals and surgical treatments are expected to increase market growth.

The increasing burden of chronic diseases in the country is increasing the demand for the detection of disease, conditions, and treatments, which further increases the demand for operating room equipment, thereby propelling market growth. For instance, in January 2022, a press release by the WHO stated that around 7 million people living in South Africa have HIV, with around 5.5 million receiving ART treatment. Around 5 million women are infected with HIV in the country, with around 210,000 new cases of newly infected people. The high prevalence of HIV is expected to increase the demand for hospital supplies, which is expected to increase market growth.

Moreover, the rising healthcare spending and the number of hospitals are more likely to support the target market's expansion in the country. For instance, in April 2022, the Netcare Property Holdings Joint Venture opened a 400-bed multi-specialty hospital in South Africa. Thus, the expansion of hospitals in South Africa is expected to create opportunities for operating room equipment, fueling market growth. Additionally, another article published in the Europe PMC in January 2021 mentioned that the incidence of hip fracture nationwide is predicted to increase more than threefold by 2050 compared to 2020. Such an increase in hip fractures is expected to drive demand for operating room equipment for orthopedic purposes, further bolstering the studied market's growth.

South Africa Hospital Supplies Market Competitor Analysis

The South African hospital supplies market is moderately competitive, with most of the players competing to increase market shares. Strong competition and rapid technological advancements are key factors that confront the market. The major market players in the South Africa hospital supplies market are 3M Healthcare, B. Braun Melsungen AG, Becton Dickinson and Company, Cardinal Health, and Medtronic, among others.

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