The size of the Over the Counter (OTC) Drugs Market in Germany has been estimated at USD 8.78 billion in 2024 and is projected to reach USD 11.47 billion by 2029, at a CAGR of 3.85% during the forecast period from 2024 to 2029.
Over-the-counter (OTC) drugs can be dispensed without the prescription of healthcare professionals. These drugs are safe & practical and can be bought at pharmacies and local stores over the counter. These drugs are occasionally used for common conditions (cold & flu, analgesia, cough, skin diseases, and other conditions). Most commonly marketing OTC drugs in Germany include Acetaminophen, Aspirin, Ibuprofen, Voltaren Gel, and Dorithricin, among others. The German OTC and Pharma market is one of the world's largest and most diverse markets. This diversity has led to some fascinating developments in the market's structure and operations, which contribute to the growth of the OTC Drugs markets, which are estimated to grow significantly during the forecast period. Germany is popularly known as the "World's Pharmacy." Germany has a leading position not only due to its market size but also because of its production and export. Various reports state that exports from Germany have increased by more than 10% in recent years, making the country's position one of the world's leading OTC and pharma markets. Also, as Germany is located in the heart of Europe, it represents a point of reference for the international medicine supply chain.
The rising importance of OTC drugs, increasing self-medication, growing healthcare awareness among the public, and rising healthcare costs are some factors driving the growth of the OTC drugs market in Germany. Also, an increasing number of chemists & pharma dispensaries and the key benefits offered by OTC drugs, such as quick availability, affordability, ease of access, & customer-empowering qualities, are further stimulating the growth of OTC medicines. The traditional brick-and-mortar pharmacies have high trust among the German population and act as the primary distribution channel for OTC products, which drives the market growth. Germany is one of the world's top pharmaceutical production locations, positively impacting the market growth.
Germany provides the perfect environment for the development and production of research-intensive, high-grade products, influencing the manufacturers to invest in R&D activities, which is expected to accelerate the market growth opportunities. The expanding distribution channels, pharmaceutical companies' shift from Rx to OTC drugs, increasing self-medication among the Germans, and the expiration of patents for biological drugs are some primary factors propelling the market growth. The growing healthcare costs worldwide demand affordability and accessibility by the people, raising the adoption of self-medication with non-prescription drugs and augmenting the market share growth. According to a report published by the University of Germany in February 2023, the German population's annual spending on over-the-counter medicines is around EUR 6 billion.
However, lack of proper reimbursement policies, strict regulations for the import of medicines, including OTC drugs, complications involved in taking the wrong medication due to lack of knowledge, and availability of other therapies (such as homeopathy) are expected to restrain the growth of OTC drugs market in Germany. Chronic usage of these drugs may result in various issues like organ damage, developing psychological symptoms such as depression, and cognitive issues, which are expected to hamper the market growth opportunities due to a limited adoption rate. Most people with limited knowledge may misuse these medications, which hinders market growth. Some of the challenges regarding storage and transportation and strict import and export regulations are all estimated to limit the market growth.
The primary challenges to expanding the OTC drugs market are slow market growth, limited knowledge of the people, especially in rural areas, and a high preference for traditional home remedies, which will limit the market growth rate. The presence of stringent regulations by the regulatory authorities for approval and usage of medicines as non-prescribed drugs will challenge the manufacturers as these induce high costs and complexity.
Germany OTC Drugs Market Analysis By Formulation Type
The tablets segment held the most significant share in the German OTC drugs market as people highly prefer tablets rather than other formulations. According to authorities, children above 12 can take tablets for any disease condition, while children below 12 should prefer liquids such as suspensions and emulsions for easy administration, which drives the segment's growth.
The liquids segment is estimated to grow steadily and significantly during the forecast period due to the increased adoption of suspensions for children and elderly people, as they are easier to swallow than tablets.
Germany OTC Drugs Market Analysis By Product Type
The cough, cold, and flu segments dominated the German OTC Drugs market with a significant market share. The increasing number of people being affected by cough, cold, and flu, especially among the elderly population and children, is accelerating the demand for over-the-counter drugs among the people. According to the data published by the Robert Koch Institute (RKI) in October 2022, more than 2100 cases of influenza were reported in a week and a total of around 8330 since the start of the season in October. Children and the elderly are highly prone to infections due to their lower immunity levels, which positively impacts segment growth.
The Analgesics segment held the second-largest share of the market revenue due to increasing demand for painkillers. The growing number of older adults across the country fuels the segment growth as they are highly induced with chronic diseases that cause constant and frequent pain, which enhances their adoption of OTC painkillers, contributing to the market growth.
Other segments, such as gastrointestinal drugs, vitamins and minerals, weight loss products, and diet products, are estimated to have notable growth in the coming years. The increasing number of people with gastrointestinal problems due to their sedentary lifestyle habits and unbalanced diets boosts the segment growth rate.
Germany OTC Drugs Market Analysis By Distribution Channel
The pharmacies and drug stores segment held the most significant share of the German OTC drugs market revenue. This segment is expected to have prominent growth during the forecast period as most of the OTC drugs are available at pharmacies in Germany under the guidance of professional and trained pharmacists, which is driving the segment growth rate, leading to global market growth. Crucial drugs such as analgesics consisting of various drugs like aspirin, diclofenac, ibuprofen, naproxen, and paracetamol are widely available OTC drugs at pharmacies. These drugs cannot be found in supermarkets, restricting market revenue in the supermarket and hypermarkets segment.
The online drugstore segment is projected to grow fastest during the forecast period. The German e-commerce sector held the most significant share of the European market due to the wide adoption of online shopping among the German population, which drives the e-pharmacies around the country. The e-Pharmacies provide high discount offers, escalating the demand for online stores and fueling the segment growth in the coming years. Germany is considered the home of discount shopping, positively impacting segment growth.
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