PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1401768
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1401768
OTC Drugs Market size was valued at USD 162,794.3 Million in 2022, expanding at a CAGR of 5.0% from 2023 to 2030.
OTC or over the counter Distribution channels are pharmaceutical products that are considered safe to buy without the requirement of a prescription from a medical professional. These products are available in hospital pharmacies, medical stores, and sometimes even grocery shops, and are sold legally without any prescription. OTC medicines are used to treat some common symptoms, which include the common cold, body pain, allergies and flu, heartburn, acne, and other basic health problems.
OTC Drugs Market- Market Dynamics
The shift of manufacturers from prescription Distribution channels to OTC is expected to propel the market demand
One of the prominent trends in the market is the shift of manufacturers from prescription Distribution channels to OTC. Many manufacturing companies are switching their products from prescription to OTC. For instance, Bayer AG states in their 2019 annual report that, as part of its strategy, the company will change some of its prescriptive products suitable for self-care to OTC. This is anticipated to lead to a higher availability of these Distribution channels for various disease conditions in emerging and developed countries. Other trends in the market include the increasing number of private-label OTC products. The rise in online sales of the OTC products and tie-ups between private label manufacturers and e-commerce companies are developing new trends in the market. For instance, In September 2019, Dr. Reddy's Laboratories Ltd. announced the launch of an OTC Omeprazole Delayed-Release tablet in the U.S. market. These upcoming new trends will diversify market growth during the forecast period.
OTC Drugs Market- Key Insights
As per the analysis shared by our research analyst, the global OTC Drugs Market is estimated to grow annually at a CAGR of around 5.0% over the forecast period (2023-2030)
The OTC Drugs Market is projected to grow at a significant rate driven by shift of manufacturers from prescription Distribution channels to OTC
Based on Type, the cold & cough segment was predicted to show maximum market share in the year 2022
Based on Distribution channel, drug stores & retail pharmacies was the leading Segment in 2022
On the basis of region, North America was the leading revenue generator in 2022
The Global OTC Drugs Market is segmented on the basis of Type, By Distribution channel, and Region.
On the basis of type, the market can be segmented into analgesics, cold & cough remedies, digestives & intestinal remedies, skin treatment, vitamins & minerals, and others. The cold & cough remedies segment is anticipated to dominate the market owing to the increasing occurrence of common colds and coughs among the population due to seasonal variation. According to the Centers for Disease Control and Prevention, cold and cough are the most common conditions in children below the age of 10 years and in geriatric populations above 65 years, which is leading to an increasing demand for therapeutic products.
Based on distribution channel, the market is segmented into drug stores & retail pharmacies, hospital pharmacies, and online pharmacies. The drug stores & retail pharmacies segment is projected to account for the largest market share during the forecast period owing to the increasing number of retail pharmacies offering OTC products and the rising patient preference for stores & retail pharmacies for these products. The hospital pharmacies segment accounts for the second-largest market share owing to increasing access to OTC Distribution channels and the availability of different products.
OTC Drugs Market- Geographical Insights
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
In the highly competitive OTC drug space, pharmaceutical companies are continually innovating to expand their product portfolios and enhance consumer access. Major players like Johnson & Johnson, Bayer AG, and Sanofi are strategically shifting from prescription drugs to over-the-counter offerings, thereby increasing the availability of self-care medications for various health conditions globally. Additionally, an emerging trend is the proliferation of private-label OTC products, driven by increasing online sales and partnerships between private label manufacturers and e-commerce giants. This trend is diversifying the market landscape and offering consumers a wider array of choices for self-medication. Recent collaborations and product launches, such as MCKESSON CORPORATION's introduction of the Foster & Thrive brand and RL Limited's partnership with AFT Pharmaceuticals for online OTC sales, reflect the industry's commitment to meeting evolving patient needs and capitalizing on the growing demand for accessible healthcare solutions.
In June 2023, MCKESSON CORPORATION, a diversified pharmaceutical company announced the launch of Foster & Thrive, a curated private brand of OTC health and wellness products in order to meet evolving patient needs and growing demand.
In July 2022, RL Limited, an e-commerce and digital marketing company, teamed up with AFT Pharmaceuticals, a New Zealand-based company, to launch a range of OTC Distribution channels through the online marketplace Tmall Global.
The scope of this report covers the market by its major segments, which include as follows: