The 2017 Family Planning Market Report covers the total FP2020 public sector market– defined as volumes purchased by institutional buyers (USAID, UNFPA, SMOs, etc.) and Ministries of Health (MOHs) or government-affiliated procurers for the 69 FP2020 focus countries (defined as countries with a 2010 gross national income per capita less than or equal to US$2,500). The report covers all product-based modern methods using historical supplier-reported shipment data collected from 14 suppliers1 for female condoms, implants, injectables, IUDs, orals (combined and progestin only), and emergency contraceptives, and data from the Reproductive Health Interchange (for male condoms).
THE FP2020 PUBLIC SECTOR MARKET VALUE DECLINED SHARPLY FROM 2015 TO 2016, WHILST THE CYP2 MIX3 CONTINUED TO SHIFT TOWARDS LONG-ACTING REVERSIBLE CONTRACEPTIVES, OFFSETTING SOME OF THE DECLINE IN TOTAL CYPS SHIPPED.
From 2015 to 2016, there was a 28 percent decline4, US$274 million to US$196 million, in the value5 of the public sector market in the 69 FP2020 focus countries. This substantial decrease in market value was primarily driven by a sharp decline in the shipments of injectables and orals (combined and progestin only), 49 percent and 34 percent decline respectively, to the 69 FP2020 countries. Consequently, the total couple years of protection (CYPs) shipped, an estimate of the duration of contraceptive protection provided through products shipped, fell from 123 million in 2015 to 104 million in 2016. This significant decrease of the total FP2020 public sector market value, as implied by supplier shipment data, aligns to the sizeable decline also observed in the donor-funded shipments tracked by the Reproductive Health Interchange (RHI).6
Though the value of the FP2020 public sector market remained relatively stable since 20117, the sharp decrease from 2015 to 2016 offset the gains of prior years and caused a net annual decline in value of seven percent from 2011 to 2016. Despite this significant decline, the total CYPs shipped only decreased by one percent over the same period. This was mainly driven by the shift in CYP mix towards implants8, which accounted for 9 percent of all CYPs shipped in 2011 compared to 27 percent in 2016.
There are a number of possible reasons for the declined market value from 2015 to 2016. Though further investigation beyond the scope of this report would be required to affirm these reasons, they could include:
- The decline in donor spending may have led to a decline in total public sector procurement as other procurers9 may not have fully covered the shortfall.
- Some shipments may have shifted to local and regional non donor-supported suppliers that are not captured in this report.
- Procurement patterns fluctuate and 2016 might be an outlier year in which procurers intentionally procured less and instead consumed more of their inventories.
Moving forward, the availability of funding for contraceptive commodities could significantly impact the family planning commodity market. A number of recent analyses, including RHSC’s 2016 Global Contraceptive Commodity Gap Analysis, have identified significant funding gaps based on current and existing family planning spending levels.10 In addition, there is continued uncertainty with regard to the future of the U.S. government’s financial commitment to family planning. Should the funding challenges remain unaddressed, there could be a decline in the family planning commodity market and subsequently in the number of users on modern methods of contraception.