The size of the global OTC drugs market is predicted to value USD 287.07 billion by 2027 from USD 190.47 billion in 2022, growing at a CAGR of 8.55% between 2022 to 2027.
OTC drugs are effective and safe drugs that can be bought at pharmacies and local stores, over the counter, without a doctor’s prescription. These drugs are seldom used for common ailments. Instead, The pharmacists dispense them after verifying the customer’s age and identification. Acetaminophen, aspirin, and ibuprofen are the most common OTC drugs. The OTC drugs market is booming with the allowance of previously high-priced prescribed drugs, shifting to the OTC category.
The increasing adoption rate of the over-the-counter (OTC) drugs in developing regions leads to high market penetration. Therefore, it is boosting the growth of the global OTC Drugs Market.
Affordability is another major factor fueling the development of the over-the-counter drugs market in developing nations. In addition, the influx of innovative drugs into the market owing to technological advancements is fueling up the growth rate of the over-the-counter drugs market. Also, increasing awareness among the people in China, Brazil, India, and other developing countries regarding OTC drugs' applications is boosting the growth of this market further.
Increasing adoption of OTC drugs in developing countries due to availability and affordability offers lucrative opportunities for the key players in the market. Furthermore, many pharmaceutical companies, drug stores, supermarkets, retail outlets, hospital pharmacies, and online pharmacies in developed and developing countries offer many opportunities to grow the global OTC drugs market. Furthermore, increasing healthcare expenditure and boosting economies of countries like China, India, Brazil, the Middle East, and other developing countries due to continually growing population and rising disposable income in these countries are expected to create profitable possibilities for the market players worldwide during the forecast period. In addition, increasing focus of public and private organizations on research and development activities from the private and public organizations for developing drug delivery systems, effective drugs which can be accessible at the nearest drug stores, medical shops, and online shopping is likely to expand growth potential for the over the counter drugs market during the outlook period.
The public started showing a proactive approach towards the ailments. Along with that, they are also resorting to lower-priced alternatives due to rising costs in healthcare. The cultural shift in the public toward self-reliance leads to gaining significant acquisitions. These are some drivers that shoot up over the counter drugs market growth.
Drug abuse and the possibility of drug addiction is the major challenge and is pulling down the growth of the over-the-counter drugs market.
Wrong medication due to incorrect self-diagnosis and misdiagnosis may lead to severe complications and is another limiting factor for developing the global OTC Drugs Market. Using traditional home remedies limits the market's growth worldwide due to the emergence of blogs and websites that share knowledge about the benefits associated with natural and cost-cutting remedies. Lack of awareness regarding the active drugs in underdeveloped and rural regions also restrains the market's growth.
COVID 19 impact on the OTC drugs market:
Coronavirus disease has spread to almost every country in the world. It is a deadly disease that affected many in an unprecedented way. World Health Organization (WHO) declared emergency healthcare, where it released many guidelines to control its spread. In many countries, governments imposed a lockdown in the first half of 2020. In this period, the Over The Counter drugs market demand has surged tremendously. The spread of coronavirus has set a lot of confusion for the people in the treatment process. The novel coronavirus disease will adversely affect patients with chronic diseases and older people. Therefore, the majority of people are getting treatment at home. Medical experts say that it is good news that many people are treated at home for the common cold. Also, in the COVID 19 outbreak, six OTC drugs got approval from the Food and Drug Administration to treat these diseases associated with mild symptoms. As there is no certain vaccination for the COVID 19, all the people take the medications that work for cold or flu and fever from the pharmacies. Hence, COVID 19 is a boom for the over-the-counter drugs market.
Market Size Available
2021 to 2027
2022 to 2027
By Product Type, Formulation Type, Distribution Channels, and Region
Various Analyses Covered
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities
North America, Europe, APAC, Latin America, Middle East & Africa
Market Leaders Profiled
Johnson and Johnson, Novartis, Bayer, Pfizer, Boehringer Ingelheim, Sanofi, Takeda, and PGT Healthcare
This research report on the global OTC drugs market has been segmented and sub-segmented based on the product type, formulation type, distribution channels, and region.
OTC Drugs Market – By Product Type:
More than half of the market share belongs to categories like Analgesics, Cough, Cold & Flu, Dermatological and gastrointestinal categories based on the product type.
The vitamins and minerals supplements segment was second in accounting for leading shares in the global OTC drugs market and covered a 28.5% share in 2019. It is due to purchasers having more knowledge regarding the advantages associated with the intake of vitamin supplements. Moreover, a rise in unhealthy population is more familiar among the developed countries across the globe.
Analgesics & pain relives market segments are another lucrative segment in the global OTC drugs market and are presumed to continue the projection period.
The weight loss/diet products segment is forecasted to exhibit the highest CAGR growth rate during the assessment period. In addition, weight loss products and smoking cessation aids are other significant segments anticipated to generate during the estimated period due to increasing awareness among healthy people.
OTC Drugs Market – By Formulation Type:
Based on the formulation type, the tablets segment is dominating the market owing to increasing cases of the COVID-19 and the growing need for dietary supplements. Liquids and Ointments are following Tablets segment is leading with the dominant shares of the market. Rising orthopedic problems among older people are one factor fuelling the market's growth rate.
OTC Drugs Market – By Distribution Channels:
Based on the distribution channels, the pharmacy segment is estimated to have notable growth during the analysis period globally. Many pharmaceutical companies have adopted OTC drugs and sent them to pharmacies. The general population uses these drugs over prescription drugs, which provides an excellent opportunity for market growth.
OTC Drugs Market – By Region:
Geographically, North America and Europe are the top contributors to the global OTC drugs market, followed by Asia-Pacific. Europe is said to attain a commendable profit due to the public's very high adoption rates. Asia-Pacific regions like China, Japan, and India are the fastest-growing markets, as the growth rate is shooting up exponentially. Latin American countries are just tailing behind top Asian contributors, with their newly emerging markets in Brazil and Argentina. However, North America is forecasted to witness a decline in the market due to the domination of generic medicine prescriptions. In addition, some nations are yet to standardize the process of reviewing the nonprescription attainment status.
KEY MARKET PLAYERS:
GlaxoSmithKline, Johnson and Johnson, Novartis, Bayer, Pfizer, GSK Boehringer Ingelheim, Sanofi, Takeda, and PGT Healthcare are the top companies contributing to the OTC drugs market. GlaxoSmithKline, Johnson and Johnson, Novartis, and Sanofi possess the maximum market share. The extension of OTC services for drugs dealing with chronic diseases like diabetes and hypertension is a new trend.
KEY HAPPENINGS IN THIS MARKET IN THE RECENT PAST:
1.1 Market Definition
1.2 Study Deliverables
1.3 Base Currency, Base Year and Forecast Periods
1.4 General Study Assumptions
2. Research Methodology
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Econometric Modelling
2.2.4 Expert Validation
2.3 Analysis Design
2.4 Study Timeline
3.1 Executive Summary
3.2 Key Inferences
3.3 New Developments
4. Drivers, Restraints, Opportunities, and Challenges Analysis (DROC)
4.1 Market Drivers
4.2 Market Restraints
4.3 Key Challenges
4.4 Current Opportunities in the Market
5. Market Segmentation
5.1 Product Type
5.1.2 Cough, Cold and Flu Products
5.1.3 Vitamins and Minerals
5.1.4 Dermatological Products
5.1.5 Gastrointestinal Products
5.1.6 Ophthalmic Products
5.1.7 Sleep Aid Products
5.1.8 Weight Loss/Diet Products
5.2 By Formulation Type
5.3 Distribution Channels
5.3.3 Convenience stores
5.3.4 Others (Online Drug Stores)
6. Geographical Analysis
6.1 North America
6.1.2 United States
6.3.5 South Korea
6.4 Latin America
6.4.5 Rest of Latin America
6.5 Middle East & Africa
7. Strategic Analysis
7.1 PESTLE analysis
7.2 Porter’s Five analysis
7.2.1 Bargaining Power of Suppliers
7.2.2 Bargaining Power of Consumers
7.2.3 Threat of New Entrants
7.2.4 Threat of Substitute Products and Services
7.2.5 Competitive Rivalry within the Industry
8. Market Leaders' Analysis
8.1.2 Product Analysis
8.1.3 Strategic Evaluation and Operations
8.1.4 Financial analysis
8.1.5 Legal issues
8.1.6 Recent Developments
8.1.7 SWOT analysis
8.1.8 Analyst View
8.2 Johnson and Johnson
8.6 Boehringer Ingelheim
8.9 PGT Healthcare
9. Competitive Landscape
9.1 Market share analysis
9.2 Merger and Acquisition Analysis
9.3 Agreements, collaborations and Joint Ventures
9.4 New Product Launches
10. Expert Opinions
10.1 Market Outlook
10.2 Investment Opportunities
a) List of Tables
b) List of Figures
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