Over the Counter (OTC) Drugs - Market Insight, Competitive Landscape, and Market Forecast - 2030

Over-the-Counter Drugs Market by Therapeutics (Cough, Cold & Allergy, Gastrointestinal, Analgesics, Dermatological, and Others), Formulation (Tablets, Powders & Capsules, Drops, Topical Creams & Ointments, and Others), Distribution Channel (Hospitals Pharmacies, Retail Pharmacies, Online Pharmacies, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World) is expected to grow at a steady CAGR forecast till 2030 owing to the increasing expedited conversion of prescription medications to OTC status, increasing prevalence of various indications resulting in incidents of acute and chronic pains leading to extensive use of OTC drugs, and regulatory support across the globe.

The over-the-counter drugs market was valued at USD 151.15 billion in 2023, growing at a CAGR of 5.93% during the forecast period from 2024 to 2030 to reach USD 213.08 billion by 2030. The market for over-the-counter drugs is experiencing robust growth driven by several interconnected factors. The increasing expedited conversion of prescription medications to OTC status, combined with the rising prevalence of various health conditions leading to incidents of acute and chronic pain, significantly boosts the market for over-the-counter drugs. This trend allows consumers to access effective treatments more easily and quickly without the need for a prescription, catering to the growing demand for self-care solutions. Additionally, widespread regulatory support across the globe facilitates the reclassification process and ensures the availability of safe and effective OTC options. As a result, these factors collectively drive the expansion of the OTC drug market, meeting the evolving healthcare needs and preferences of consumers seeking convenient, affordable, and accessible medication options. Thus, these factors collectively boost the over-the-counter drugs market, during the forecast period from 2024 to 2030.

Over-the-Counter Drugs Market Dynamics:

According to a recent study published under the Global Burden of Disease (2023), nearly 1 billion people were projected to be living with osteoarthritis, the most common form of arthritis, by 2050. Currently, 15% of individuals aged 30 and older experience osteoarthritis. The most common sites for osteoarthritis are the knees and hands. By 2050, cases of osteoarthritis of the knee are expected to increase by 75%, while cases of osteoarthritis of the hand are anticipated to rise by 50%. Additionally, as per the recent update provided by the Australian Bureau of Statistics (2023), in 2022, under 3.7 million (14.5%) people had arthritis. For individuals aged 45-54 years, the proportion is almost seven times higher than for those aged 0-44 years (16.2% compared to 2.5%). The prevalence almost doubled between the ages of 45-54 years and 55-64 years (16.2% compared to 30.5%). Older adults aged 75 years and over were more likely than any other age group to have arthritis, with almost one in two (48.9%) having the condition in 2022. As arthritis commonly results in chronic pain and inflammation, affected individuals often seek immediate and accessible relief. OTC medications such as nonsteroidal anti-inflammatory drugs (NSAIDs), acetaminophen, and topical analgesics are widely used to manage arthritis symptoms. The convenience of OTC drugs, which do not require a prescription and can be readily purchased from pharmacies and retail stores, appeals to arthritis sufferers looking for quick and effective pain management solutions thereby boosting the market. Additionally, one of the primary factors driving the over-the-counter drugs market growth is the upsurge in the use of analgesics due to an increase in various modalities affecting the musculoskeletal system causing problems such as arthritis, back pain, and fibromyalgia among other indications such as menstrual cramps, headaches etcetera.

Another prominent factor responsible for the increasing demand for OTC drugs is the upsurge in cases of unintended pregnancies across the globe, which is expected to influence the demand for over-the-counter emergency contraception pills during the forecast period. According to the recent data provided by the United Nations Fund for Population Activities (UNFPA) (2022), approximately 121 million pregnancies each year worldwide were unintended, affecting nearly half of all women and girls. For these individuals, the pivotal reproductive decision of whether to conceive or not was frequently beyond their control. Therefore, when unintended pregnancies occur, there is an increased demand for emergency contraception, such as the morning-after pill, which is available OTC. This immediate need for accessible, effective contraception drives higher sales of these products. Additionally, product approvals through regulatory bodies have also contributed to escalating the market of over-the-counter contraceptive drugs across the region. For instance, in July 2023, the FDA approved the first nonprescription daily oral contraceptive, a progestin-only pill, Opill, enabling consumers to buy the OTC contraceptive without a prescription. This approval allows the pill to be sold at drug stores, convenience stores, grocery stores, and online. Thus, allowing the purchase of progestin-only pills without a prescription may eliminate barriers to obtaining contraceptive medicine, particularly for those who may face difficulties in accessing healthcare providers thereby boosting the overall market of over-the-counter drugs.

Additionally, the increasing prevalence of common ailments such as colds, coughs, allergies, and gastrointestinal issues drives the demand for OTC drugs. Seasonal changes and environmental factors contribute to the recurring need for these products.

However, the side effects and allergic reactions along with misuse and overuse without the proper guidance from healthcare professionals, consumers might take incorrect dosages, use OTC drugs for longer than recommended, or combine them with other medications inappropriately, leading to adverse effects or drug interactions may hinder the growth of over-the-counter drugs during the forecast period.

Over-the-Counter Drugs Market Segment Analysis:

Over-the-Counter Drugs Market by Therapeutic Category (Cough, Cold & Allergy, Gastrointestinal, Analgesics, Dermatological, and Others), Formulation (Tablets, Powders & Capsules, Drops, Topical Creams & Ointments, and Others), Distribution Channel (Hospitals Pharmacies, Retail Pharmacies, Online Pharmacies, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World)

In the therapeutic segment of the over-the-counter drugs market, the cold & allergy category is estimated to have a significant revenue share in the anti-infective drug market in 2023. Cold and allergy conditions significantly boost the overall market for over-the-counter (OTC) drugs, serving as dominant factors due to their high prevalence and recurrent nature. Colds are among the most common illnesses worldwide, affecting millions of individuals annually. Allergic reactions to pollen, dust, pet dander, and other allergens lead to symptoms like sneezing, itching, runny nose, and watery eyes. The chronic and often unpredictable nature of allergies causes sufferers to frequently purchase OTC remedies such as antihistamines, nasal sprays, and eye drops.

Additionally, the increasing cases of colds and allergies have further propelled the market for over-the-counter drugs. According, to the recent data provided by the Centre for Disease Control and Prevention (2023), in 2021, nearly 1 in 3 U.S. adults and more than 1 in 4 U.S. children reported having a seasonal allergy, eczema, or food allergy. About 25.7% of adults have a seasonal allergy, 7.3% have eczema, and 6.2% have a food allergy. As the cases of cold and allergy rise, there is a substantial and continuous demand for effective and accessible treatments. OTC medications such as antihistamines, decongestants, topical creams, and other allergy relief products are essential for managing the symptoms associated with these conditions thereby boosting the overall market of over-the-counter drugs.

Additionally, the segment acts as a boosting factor in escalating the overall market of over-the-counter drugs due to several regulatory approvals of OTC medication. For instance, in March 2022, the FDA approved Nasonex which provides temporary relief to hay fever or other upper respiratory allergies: nasal congestion, runny nose, sneezing, and itchy nose.

Thus, the above-mentioned factors are expected to boost the overall market of OTC medication during the forecast period.

North America is expected to dominate the overall over-the-counter drugs market:

North America is expected to account for the highest proportion of the over-the-counter drugs market in 2023, out of all regions. This can be ascribed to the increasing number of switches from prescription drugs to OTC status for various drugs, increase in chronic pain, increasing prevalence of common ailments such as colds, coughs, allergies, and gastrointestinal issues, increase in regulatory approval of over-the-counter drugs across the globe, and the presence of key market players in the region driving the over-the-counter drugs market in North America.

As per the Allergy and Asthma Foundation of America (2021), allergies are the sixth leading cause of chronic illness in the United States. The source further mentioned that over 50 million Americans experience various types of allergies each year. Additionally, as per Food Allergy and Education (2022), 32 million people have food allergies across the country. This widespread prevalence creates a substantial and continuous need for effective allergy management solutions thereby boosting the market of over-the-counter drugs.

As per the recent data provided by the Centre for Disease Control and Prevention (CDC) (2023), from 2019 to 2021, statistics revealed that about 21.2% of adults in the United States, totaling approximately 53.2 million individuals, were diagnosed with arthritis by a healthcare professional. Among these, women experienced a higher prevalence, with 20.9% affected, compared to 16.3% of men. Moreover, veterans exhibited a higher prevalence of arthritis at 24.2%, surpassing the 18.5% prevalence rate among non-veterans. Additionally, the likelihood of being diagnosed with arthritis increases with age. These conditions often lead to severe joint pain, deformities, and loss of function, necessitating over-the-counter drugs such as Acetaminophen, Ibuprofen, Naproxen, and others thereby boosting the future market in the United States.

Additionally, the extensive switch of the Rx medication to OTC status is another factor driving the market growth in the North American region. For instance, in March 2022, Nasonex 24HR Allergy (mometasone furoate) nasal spray was given OTC status by the US FDA.

Therefore, the interplay of the aforementioned factors above would provide a conducive growth environment for the North American region in the over-the-counter drugs market.

Over-the-Counter Drugs Market Key Players:

Some of the key market players operating in the over-the-counter drugs market include Johnson & Johsnon Services Inc., BAYER AG, Novartis, Sanofi-aventis U.S. LLC., Pfizer Inc., GlaxoSmithKline plc., Cipla Inc., Piramal Enterprises Limited, Duramed Pharmaceuticals, Inc., Glenmark Pharmaceuticals, Dr. Reddy's Laboratories, Innovus Pharmaceuticals, Inc., Teva Pharmaceutical Industries Ltd., Viatris Inc, Reckitt Benckiser Group PLC, Afaxys Pharma, LLC, FOUNDATION CONSUMER HEALTHCARE, Alcon Inc., Teva Pharmaceutical Industries, Sun Pharmaceutical Industries Ltd., and others.

Recent Developmental Activities in the Over-the-Counter Drugs Market:

• In March 2023, the U.S. Food and Drug Administration approved Narcan, a nasal spray that is used in the treatment of known or suspected opioid overdose.
• In December 2021, the US Food and Drug Administration approved the prescription drug Lastacaft (alcaftadine ophthalmic solution), 0.25% to an over-the-counter drug.
• In June 2021, Bayer received regulatory approval from the US FDA for their product Asepro Allergy as an OTC drug for temporary relief from nasal congestion, itch and runny nose, and other respiratory allergies.

Key takeaways from the over-the-counter drugs market report study:

• Market size analysis for current over-the-counter drugs size (2023), and market forecast for 6 years (2024 to 2030)
• Top key product/technology developments, mergers, acquisitions, partnerships, and joint ventures happened over the last 3 years
• Key companies dominating the over-the-counter drugs market.
• Various opportunities available for the other competitors in the over-the-counter drugs market space.
• What are the top-performing segments in 2023? How these segments will perform in 2030?
• Which are the top-performing regions and countries in the current over-the-counter drugs market scenario?
• Which are the regions and countries where companies should have concentrated on opportunities for over-the-counter drugs market growth in the coming future?

Target audience who can be benefited from this over-the-counter drugs market report study:

• Over-the-counter drugs providers
• Research organizations and consulting companies
• Over-the-counter drugs related organizations, associations, forums, and other alliances
• Government and corporate offices
• Start-up companies, venture capitalists, and private equity firms
• Distributors and traders dealing in over-the-counter drugs
• Various end-users who want to know more about the over-the-counter drugs market and the latest technological developments in the over-the-counter drugs market.

Frequently Asked Questions for the Over-the-Counter Drugs Market:

1. What are over-the-counter drugs?

Over-the-counter (OTC) drugs are medications that can be purchased without a prescription from a healthcare professional. These drugs are considered safe and effective for use by the general public when used according to the directions on the label. OTC drugs are commonly used to treat a variety of health issues, such as pain, fever, cough, cold, allergies, digestive problems, and minor infections.

2. What is the market for over-the-counter drugs?

The over-the-counter drugs market was valued at USD 151.15 billion in 2023, growing at a CAGR of 5.93% during the forecast period from 2024 to 2030 to reach USD 213.08 billion by 2030.

3. What are the drivers for the over-the-counter drugs market?

The market for over-the-counter drugs is experiencing robust growth driven by several interconnected factors. The increasing expedited conversion of prescription medications to OTC status, combined with the rising prevalence of various health conditions leading to incidents of acute and chronic pain, significantly boosts the market for over-the-counter drugs. This trend allows consumers to access effective treatments more easily and quickly without the need for a prescription, catering to the growing demand for self-care solutions. Additionally, widespread regulatory support across the globe facilitates the reclassification process and ensures the availability of safe and effective OTC options. As a result, these factors collectively drive the expansion of the OTC drug market, meeting the evolving healthcare needs and preferences of consumers seeking convenient, affordable, and accessible medication options. Thus, these factors collectively boost the over-the-counter drugs market, during the forecast period from 2024 to 2030.

4. Who are the key players operating in the over-the-counter drugs market?

Some of the key market players operating in the Over-the-Counter Drugs are Johnson & Johsnon Services Inc., BAYER AG, Novartis, Sanofi-aventis U.S. LLC., Pfizer Inc., GlaxoSmithKline plc., Cipla Inc., Piramal Enterprises Limited, Duramed Pharmaceuticals, Inc., Glenmark Pharmaceuticals, Dr. Reddy's Laboratories, Innovus Pharmaceuticals, Inc., Teva Pharmaceutical Industries Ltd., Viatris Inc, Reckitt Benckiser Group PLC, Afaxys Pharma, LLC, FOUNDATION CONSUMER HEALTHCARE, Alcon Inc., Teva Pharmaceutical Industries, Sun Pharmaceutical Industries Ltd., and others.

5. Which region has the highest share in the over-the-counter drugs market?

North America is expected to account for the highest proportion of the over-the-counter drugs market in 2023, out of all regions. This can be ascribed to the increasing number of switches from prescription drugs to OTC status for various drugs, increase in chronic pain, increasing prevalence of common ailments such as colds, coughs, allergies, and gastrointestinal issues, increase in regulatory approval of over-the-counter drugs across the globe, and the presence of key market players in the region driving the over-the-counter drugs market in North America.