OTC consumer health market is estimated to be valued at USD 211.91 BN in 2024, exhibiting a CAGR of 4.2% over the forecast period 2024 - 2031. Furthermore, growing preference for self-medication due to the convenience and ease offered is also driving the market growth.
Market Dynamics:
The growth of the OTC consumer health market is driven by factors such as increased healthcare expenditure and rise in self-medication. Healthcare expenditure across the globe has risen significantly over the past few years. Improved economic conditions and favorable government policies have increased discretionary spending on healthcare, boosting sales of OTC drugs. Rise in health expenditure has made people more aware about minor ailments and their treatment options, driving the demand for OTC drugs. The trend of self-medication has also increased dramatically over the years. People increasingly rely on OTC medicines to treat minor illnesses rather than visiting a physician. Wide availability of health and medication information on the internet has made people more informed. Furthermore, busy lifestyles and long queues at clinics and hospitals encourage self-treatment with OTC drugs for immediate relief from symptoms.
Growing Prevalence of Lifestyle Diseases
One of the major drivers for the OTC consumer health market is the growing prevalence of lifestyle diseases globally. As per the WHO September 2023 report, non-communicable diseases or lifestyle diseases such as cardiovascular diseases, cancer, diabetes and chronic lung diseases cause approximately 71% of all deaths globally. The increasing sedentary lifestyle coupled with changing dietary patterns has led to a surge in lifestyle diseases. This has increased the demand for OTC medicines for conditions like fever, cough & cold, dental care, digestive health etc. which can be treated with OTC medications without prescription.
Rising Health Awareness and Self-Medication Trends
Another key driver is the rising health awareness among consumers and growing trend of self-medication. People are taking a more proactive approach towards managing minor health issues. The increasing usage of internet and smartphones has made people more informed about their health and treatment options. This has boosted the sales of OTC medicines which can be conveniently purchased without visiting a physician for every small health issue. Consumers find self-medication using OTC drugs to be a cheaper and more practical solution for common ailments.
Strong Regulations Around OTC Drug Approvals
Stringent regulations imposed by drug authorities on new OTC drug approvals act as a major restraint. Regulatory bodies carefully examine the safety, efficacy and labelling of OTC drugs before approving their non-prescription status. This prolongs the time required for a prescription drug to make a successful switch to OTC. Moreover, frequent changes in regulatory guidelines complicate the approval process. The intricate regulations discourage many small players and increase compliance costs for companies.
Preference for Alternative Treatment Options
Growing popularity of alternative treatment methods like ayurveda, homeopathy, yoga and other traditional remedies poses a challenge. For diseases like cold, cough and indigestion, consumers increasingly prefer switching to natural remedies over OTC drugs due to lower side effects. The inclination towards holistic healthcare and wellness is reducing reliance on conventional medicines in some cases. This restraints the potential of OTC Consumer Health Market to some extent.
Scope for New Product Innovation
The market presents lucrative opportunities for new product innovations catering to emerging consumer needs. Companies can capitalize on this by developing OTC solutions for areas experiencing high disease burden such as mental health, Parkinson's, Alzheimer's etc. Technological advancements are enabling novel drug delivery systems like orodispersible tablets, gummies, melts etc. tailored for pediatric/geriatric use. There is also potential for combination OTC drugs offering dual benefits. This can boost the market by addressing unmet needs.
Growth in Emerging Markets
Emerging countries in regions like Latin America, Middle East, Africa and Asia Pacific present tremendous scope for market growth. With rapidly developing healthcare infrastructure and rising spending power, the demand for OTC drugs is increasing in these markets at a quicker pace than developed nations. Favorable regulatory frameworks and lack of alternatives in developing nations makes the emerging territories highly lucrative for OTC Consumer Health industry players seeking expansion opportunities.
Link: https://www.coherentmarketinsights.com/market-insight/otc-consumer-health-market-5251
Key Development
- In July 2023, Perrigo Company plc, a leading manufacturer of consumer self-care products, announced that the U.S. Food and Drug Administration (FDA) had approved Opill, a progestin-only daily oral contraceptive, for over-the-counter (OTC) use in all ages. Opill is the first birth control pill accessible over-the-counter in the U.S.
- In June 2023, McKesson, a diversified healthcare services company, launched Foster & Thrive, a curated private brand of over-the-counter (OTC) health and wellness products. The launch of Foster & Thrive unifies the company's private brand portfolio, integrating Health Mart and Sunmark branded OTC goods, to provide extended availability through improved production volumes and efficiencies that will help meet evolving patient demands and growing demand.
- In April 2023, WellSpring Consumer Healthcare, a developer and marketer of leading over-the-counter (OTC) and personal care brands, announced the acquisition of a portfolio of well-known and trusted OTC skin care brands from Bayer AG, a worldwide pharmaceutical and biotechnology business. WellSpring Consumer Healthcare is a portfolio company of Avista Capital Partners, a renowned healthcare private equity firm that specializes in developing OTC platforms.
- In April 2021, Ro, a healthcare technology company, announced the launch of Roman's doctor-designed over-the-counter products in more than 4,600 Walmart stores across the nation. This strategic move aims to offer Walmart consumers exclusive, science-backed health and wellness choices both in-store and online. Customers will have the opportunity to access Ro's telehealth services for a broader range of healthcare needs, further enhancing their healthcare experience.
Key Players: Johnson & Johnson, Abbott Laboratories, Sanofi, GlaxoSmithKline plc. Bayer AG, Nestle Company, Procter & Gamble Corp., Danone Food Company, Colgate Palmolive Mfg. Company, Unilever, and Henkel AG & Co. KGaA.
