The global over the counter (OTC) drugs market was valued at US$ 160.75 billion in 2021 and is expected to reach over US$ 294.18 billion by 2030, expanding growth at a registered CAGR of 6.9% from 2021 to 2030.
The prescription drugs, on the other hand, can only be sold to consumers who have a valid prescription. Over the counter (OTC) drugs are the medicines that is sold directly to a consumer without any kind of prescription from a healthcare providers or doctors. Over the counter (OTC) drugs are chosen by regulatory agencies in many countries to guarantee that they contain chemicals that are safe and effective when taken without the supervision of a physician. The active pharmaceutical ingredient (API) of over the counter (OTC) drugs is usually regulated rather than the end product. Governments can freely create chemicals, or combinations of ingredients, into proprietary mixes by controlling APIs rather than specific medication formulations.
In recent years, the demand for over the counter (OTC) drugs has increased due to the COVID-19 pandemic. The cough and cold cases increased due to pandemic. The sale of cold and cough remedies was high during the outbreak. The consumers brought over the counter (OTC) drugs through online pharmacies. This is was due to social distancing norms and guidelines. The revenue and profit of online pharmacies increased during the epidemic of coronavirus. Such instances result into the growth of over the counter (OTC) drugs market.
The increased geriatric population, who are more susceptible to cough and cold, increased vehicle pollution, increased R&D activities leads to the high demand for over the counter (OTC) drugs in the market. An increase in the number of cough and cold cases, the development of sophisticated products, and the adoption of efficient treatments are expected to boost the overall market demand for over the counter (OTC) drugs.
In the future years, the over the counter (OTC) drugs market will be driven by the increasing availability and manufacturing of over the counter (OTC) drugs for a wide range of common illness problems. The demand for medicines is fueled by the recurrence of common colds and flu. Furthermore, the increased awareness and demand for weight loss and vitamin supplements products would significantly boost the over the counter (OTC) drugs market growth. Over the counter (OTC) drugs demand is expected to be fueled by cost-benefit analysis, positive results, and increased accessibility during the forecast period.
The development of knowledge about general health problems, as well as advancements in the healthcare and pharmaceutical industries, are driving the global over the counter (OTC) drugs and dietary supplements market. Furthermore, an increasing trend among individuals to choose over the counter (OTC) drugs for minor illnesses contributes to market growth. On the other hand, the Food and Drug Administration (FDA) strict restrictions governing the safety and efficacy of over the counter (OTC) drugs stifle the market growth during the forecast period.
Scope of the Over the Counter (OTC) Drugs Market
|Market Size In 2020||US$ 150.8 Billion|
|Growth Rate||CAGR of 6.9% from 2021 to 2030|
|Revenue Projection by 2030||US$ 294.18 Billion|
|Largest Market||North America|
|Fastest Growing Market||Asia Pacific|
|Forecast Period||2021 to 2030|
|Companies Mentioned||Bayer AG, Takeda Pharmaceutical Company Ltd., Pfizer, Johnson & Johnson Services Inc., Sanofi S.A., Reckitt Benckiser Group PLC, Novartis AG, Boehringer Ingelheim International GmbH, GlaxoSmithKline PLC, Mylan|
Based on the product, the cold & cough remedies accounted revenue share of 22% in 2020. Due to seasonal variations, the sector is expected to dominate the market due to an increase in the occurrence of common colds and coughs among the population. Increased senior population, which is more susceptible to cough and colds, increased automobile pollution, more R&D activities, and increased awareness about advanced medications are all expected to help the cough remedies segment create larger revenue in the approaching years. An increase in the number of testing and research facilities, particularly in the pharmaceutical and biotechnology industries, would contribute to the growth of segment.
On the other hand, the analgesics is expected to grow at rapid pace during the forecast period. This is owing to the growing senior population, which is driving up demand for pain relievers, as well as the introduction of new over the counter (OTC) drugs pain relievers. The goal of better healthcare outcomes drives the global need for analgesics. This includes pain management, which necessitates a multidisciplinary approach in order to be effective. Apart from that, manufacturers’ development of opioid analgesics with abuse-deterrent qualities has resulted in a significant demand for analgesics all over the world.
Distribution Channel Insights
Based on the distribution channel, the drug stores and retail pharmacies segment dominated the market with highest market share during 2020. This is attributed to the rising number of retail pharmacies providing over the counter (OTC) drugs.
On the other hand, the online pharmacies segment is fastest growing segment in the over the counter (OTC) drugs market. This is attributed to the increase in internet penetration in the developing and underdeveloped regions.
Based on the region, the North America segment dominated the global over the counter (OTC) drugs market in 2020, in terms of revenue and is estimated to sustain its dominance during the forecast period. The North America region’s supremacy can be linked to consumer’s growing preference for over the counter (OTC) drugs over prescription drugs.
On the other hand, the Europe is estimated to be the most opportunistic segment during the forecast period. Due to the widespread of self-medication and the presence of a big number of over the counter (OTC) drugs manufacturing companies in this region, Europe is predicted to be the fastest growing region during the forecast period. In addition, increased public awareness of over the counter (OTC) drugs is propelling the market expansion in this region.
Key Companies & Market Share Insights
In August 2019, Pfizer and GlaxoSmithKline Plc., two of the world’s largest pharmaceutical corporations, announced a joint venture agreement. The goal of this agreement was to establish a leading consumer healthcare company and become the global over the counter (OTC) drugs market leader.
Some of the prominent players in the global over the counter (OTC) drugs market include:
Segments Covered in the Report
By Product Type
By Distribution Channel
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