OTC Drugs Market worth over $209bn by 2027
Published Date: January 20, 2021 Authors: Sumant Ugalmugle, Rupali Swain
Over-the-counter (OTC) Drugs Market size is set to surpass USD 209 billion by 2027, according to a new research report by Global Market Insights, Inc.
Increasing prevalence of diseases including gastrointestinal disorders, dermatological infections, obesity, sleep disorders and flu among others is leading to surmounting demand for drugs. The population has plethora of alternatives to self-treat common health conditions with much higher cost reductions due to no hospital or clinic visits. Furthermore, with greater access to medicines via online pharmacies and retail outlets, the adoption of OTC medicines is expanding. Also, with greater access provided by e-pharmacies and movement restrictions in early phase of 2020 during the COVID-19 pandemic, the market witnessed moderate impact.
Increasing trend of self-medication will drive demand for OTC drugs
Growing trend of switching from prescription (Rx) to non-prescription (OTC) in developed countries will stimulate the market growth in the coming years. Companies are switching prescription drugs to OTC drugs in order to improve and rise self-medication. Cost-effectiveness of OTC drugs further favors the demand for these drugs. The U.S. FDA approved around five prescription to OTC drugs’ switch in 2020. With growing awareness about OTC drugs and self-identification of diseases, the demand for over-the-counter medicines will rapidly grow in the forecast timeframe. However, risk of counterfeit drugs and overuse of drugs may limit the market value up to some extent.
Rising prevalence of skin disorders will boost acceptance of non-prescription skin medicines
Over-the-counter (OTC) skin products accounted for USD 17.2 billion in 2020. Various dermatological disorders/conditions including acne is common among the younger population. As per the American Academy of Dermatology Association, around 50 million Americans are affected by acne every year. There is a wide range of OTC acne treatment drugs available through offline as well as online channels and the population is sufficiently aware about the commonly recommended treatment for acne vulgaris. This will positively influence the adoption trend of OTC skin products in future. Additionally, launch and distribution expansion of novel skincare drugs will further fuel the segment growth. In December 2020, Sonoma Pharmaceuticals, Inc. and Crown Laboratories, Inc. announced about their plan to market and sell OTC dermatological products in the U.S. Such agreements will benefit the OTC skin segment expansion over the coming.
Browse key industry insights spread across 135 pages with 89 market data tables & 8 figures & charts from the report, “Over-the-counter Drugs Market Size Product (Analgesics, Cold, Cough & Flu Products, Weight Loss Products, Gastrointestinal Products, Skin Products, Mineral and Vitamin Supplements, Sleeping Aids, Ophthalmic Products), Industry Analysis Report, Regional Outlook, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
High awareness regarding over-the-counter medicines will increasing the market demand
The U.S. OTC drugs market held 94.4% revenue share of the North America region in 2020. High responsiveness rate to availability and usage of non-prescription drugs in the country has propelled the market revenue. Moreover, certain American organizations are also educating the younger population about the safe use of such medications to avoid drug abuse. There are several industry leaders operating the nation that have strong foothold in the market. Thus, with rising approvals, product introductions, and expansion of product distribution channels, the U.S. region will observe lucrative growth over the forecast period.
Firms are seeking portfolio expansion strategies to cater to the growing demand for over-the-counter drugs
Few of the eminent companies operating in the market include Bayer HealthCare, Sanofi, Pfizer, Sun Pharmaceutical Industries Ltd., Cipla, Inc., Dr. Reddy's Laboratories, Reckitt Benckiser Group Plc, and GSK among numerous others. Industry participants adopting strategies such as partnerships, acquisitions and collaborations to expand business performance. For instance, in July 2020, Stada AG, a Germany-based pharmaceutical company, announced about acquisition of 15 of deep-rooted OTC brands from GlaxoSmithKline in Europe. The acquisition will strengthen the company’s portfolio and presence in the consumer health business.