Over The Counter Drugs Market Size
| Study Period | 2021 - 2029 |
| Market Size (2024) | USD 137.39 Billion |
| Market Size (2029) | USD 163.10 Billion |
| CAGR (2024 - 2029) | 3.49 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Over The Counter Drugs Market Analysis
The Over The Counter Drugs Market size is estimated at USD 137.39 billion in 2024, and is expected to reach USD 163.10 billion by 2029, growing at a CAGR of 3.49% during the forecast period (2024-2029).
The growth in the OTC drug market is attributed to the high cost of prescription drugs, leading to shifting toward OTC drugs and their increasing approval. For instance, in July 2023, a study published by the American Journal of Health-System Pharmacy reported that prescription drug spending would rise by 6.0% to 8.0% in 2023, involving pharmaceutical expenditures of around USD 633.5 billion, and prices increased by 1.7%. Such a rise in the cost of a prescription drug is expected to increase the demand for self-medication with over-the-counter (OTC) drugs. In addition, in May 2023, as per an article published in the BMJ Open Journal, around 85.4% of individuals practiced self-medication with over-the-counter (OTC) drugs in Ibadan, Southwestern Nigeria. Thus, the high cost of Rx drugs leading to the use of OTC drugs is expected to drive market growth.
Furthermore, increasing product innovation among key market players is expected to support market growth over the forecast period. For instance, in July 2023, the Arnicare product line expanded with over-the-counter Arnicare arthritis cream, offering temporary relief from minor joint pain, muscle pain, and stiffness due to arthritis for individuals aged 12 years and older. Similarly, in March 2022, Perrigo received Food and Drug Administration (FDA) approval for the OTC use of Nasonex 24HR Allergy (mometasone furoate monohydrate) 50 mcg. Such increases in OTC drug launches are expected to drive market growth over the forecast period.
Thus, the abovementioned factors, such as the high cost of prescription drugs and the rising approvals of OTC drugs, are expected to positively impact the growth of the over-the-counter drugs market. However, high-end manufacturing and complicated and cumbersome regulatory requirements are expected to hinder market growth over the forecast period.
Over The Counter Drugs Market Trends
The Cough, Cold, and Flu Products Segment is Expected to Witness Significant Growth Over the Forecast Period
Many different types of viruses can cause a common cold. The condition is generally harmless, and symptoms usually resolve within two weeks. The rise in the number of people suffering from cough, cold, and flu increases the utilization of over-the-counter (OTC) drugs. Consumers depend on OTC cough, cold, or flu medicines as they are the first resort to relieve symptoms. For instance, in December 2022, an article published by the Cochrane Database of Systematic Reviews mentioned that around 70 million workdays, 189 million school days, and 126 million workdays were missed by employees, children, and parents caring for children with a cold, respectively, thus poses the economic burden of USD 40 billion every year in the United States.
Furthermore, in January 2024, an article published in the IJID Regions Journal reported the prevalence of respiratory syncytial virus and influenza-like illnesses that cause cough, cold, and fever was 16.2% among children below five years in Ethiopia in 2022. Thus, the higher prevalence of flu and cold is expected to spur growth as paracetamol is commonly used to manage these conditions. Owing to their easy procurement, the sale of OTC drugs for cough, cold, and flu increased globally. Thus, given the aforementioned factors, the studied segment is expected to propel significantly over the forecast period.
North America is Expected to Hold the Major Share in the Over-the-Counter Drugs Market During the Forecast Period
The over-the-counter drug market in North America is anticipated to grow significantly owing to factors such as the growing prevalence of infections, coupled with the adoption of self-medication to relieve symptoms and an increase in the approval of OTC drugs in the region.
The increasing burden of medical conditions boosts the demand for over-the-counter drugs. For instance, in September 2022, an article published in the Journal of Pain and Therapy mentioned that migraine is an extraordinarily prevalent neurological disease, affecting about 39 million men, women, and children in the United States. The increase in patients with migraine requiring self-medication is expected to boost the market growth.
Regulatory guidelines support the utilization of the over-the-counter medications in the region and contribute to the market growth. For instance, in June 2022, the US Food and Drug Administration proposed a rule that non-prescription drug products with an additional condition for non-prescription use will maximize the alternatives for developing and marketing safe and effective non-prescription drug products to improve public health.
Additionally, the increasing product approvals and product launches in the region are driving the growth of the market studied. For instance, in June 2023, Futura Medical received market authorization from the Food and Drug Administration (FDA) for OTC MED3000 for erectile dysfunction treatment in the United States. Additionally, in July 2023, Perrigo Company PLC received the US Food and Drug Administration approval for a progestin-only daily oral contraceptive, Opill, for over-the-counter (OTC) use for all ages in the United States. Thus, given the factors above, the market studied is expected to grow significantly in North America over the forecast period.
Over The Counter Drugs Industry Overview
The over-the-counter drugs market is fragmented in nature due to the presence of several companies operating globally as well as regionally. Various strategies are employed by market players, such as acquisition, product launch, collaboration, and geographical expansion, to expand the availability and development of over-the-counter drugs. The competitive landscape includes an analysis of a few international as well as local companies that hold market shares and are well-known, including Johnson and Johnson, Novartis AG, Bayer AG, GlaxoSmithKline PLC, and Pfizer.
Over The Counter Drugs Market Leaders
Johnson and Johnson
Perrigo Company Plc
Bayer AG
Sanofi
Pfizer
*Disclaimer: Major Players sorted in no particular order
Over The Counter Drugs Market News
- April 2024: Amneal Pharmaceuticals Inc. received the US Food and Drug Administration approval for over-the-counter naloxone hydrochloride nasal spray, which can be used in the treatment of drug overdose from opioids, including heroin, fentanyl, and prescription opioid medicines.
- March 2024: Perrigo launched the OTC birth control pill Opill, which was approved by the US Food and Drug Administration. This pill can be purchased without a prescription from in-store and online retailers in the United States.
OTC Drugs Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 High Cost of Rx Drugs Leading to Shift Towards OTC Drugs
4.2.2 Increasing Approval of OTC Drugs
4.3 Market Restraints
4.3.1 Stringent Regulatory Policies
4.3.2 Lack of Awareness and Drug Abuse
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD)
5.1 By Product Type
5.1.1 Cough, Cold, and Flu Products
5.1.2 Analgesics
5.1.3 Dermatology Products
5.1.4 Gastrointestinal Products
5.1.5 Vitamins, Mineral, and Supplements (VMS)
5.1.6 Weight Loss/Dietary Products
5.1.7 Ophthalmic Products
5.1.8 Sleeping Aids
5.1.9 Other Product Types
5.2 By Formulation Type
5.2.1 Tablets
5.2.2 Liquids
5.2.3 Ointments
5.2.4 Sprays
5.3 By Distribution Channel
5.3.1 Hospital Pharmacies
5.3.2 Retail Pharmacies
5.3.3 Online Pharmacy
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Mexico
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Italy
5.4.2.5 Spain
5.4.2.6 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 Australia
5.4.3.5 South Korea
5.4.3.6 Rest of Asia-Pacific
5.4.4 Middle East and Africa
5.4.4.1 GCC
5.4.4.2 South Africa
5.4.4.3 Rest of Middle East and Africa
5.4.5 South America
5.4.5.1 Brazil
5.4.5.2 Argentina
5.4.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Johnson and Johnson
6.1.2 Bayer AG
6.1.3 Viatris (Mylan NV)
6.1.4 Sanofi S.A.
6.1.5 Pfizer Inc.
6.1.6 GlaxoSmithKline PLC
6.1.7 Perrigo Company PLC
6.1.8 Reckitt Benckiser Group PLC
6.1.9 Takeda Pharmaceutical Company Ltd
6.1.10 Boehringer Ingelheim International GmbH
6.1.11 Sun Pharmaceutical Industries Ltd
6.1.12 Teva Pharmaceutical Industries Ltd
6.1.13 Glenmark Pharmaceuticals Ltd
6.1.14 Dr. Reddy's Laboratories
6.1.15 Piramal Enterprises
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Over The Counter Drugs Industry Segmentation
As per the scope of this report, over-the-counter drugs are referred to as non-prescription drugs. These medicines can be bought by an individual without a doctor's prescription and are safe for consumption without the doctor's consent.
The over-the-counter drugs market is segmented by product type, formulation type, distribution channel, and geography. By product type, the market is segmented into cough, cold, and flu products, analgesics, dermatology products, gastrointestinal products, vitamins, minerals, and supplements (VMS), weight loss/dietary products, ophthalmic products, sleeping aids, and other product types. By formulation type, the market is segmented into tablets, liquids, ointments, and sprays. By distribution channel, the market is segmented into hospital pharmacies, retail pharmacies, online pharmacies, and other distribution channels. By geography, the market is segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. The market report also covers the estimated market sizes and trends for 17 different countries across major regions globally. For each segment, the market size and forecast are provided in terms of value (USD).
| By Product Type | |
| Cough, Cold, and Flu Products | |
| Analgesics | |
| Dermatology Products | |
| Gastrointestinal Products | |
| Vitamins, Mineral, and Supplements (VMS) | |
| Weight Loss/Dietary Products | |
| Ophthalmic Products | |
| Sleeping Aids | |
| Other Product Types |
| By Formulation Type | |
| Tablets | |
| Liquids | |
| Ointments | |
| Sprays |
| By Distribution Channel | |
| Hospital Pharmacies | |
| Retail Pharmacies | |
| Online Pharmacy |
| Geography | ||||||||
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OTC Drugs Market Research FAQs
How big is the Over The Counter Drugs Market?
The Over The Counter Drugs Market size is expected to reach USD 137.39 billion in 2024 and grow at a CAGR of 3.49% to reach USD 163.10 billion by 2029.
What is the current Over The Counter Drugs Market size?
In 2024, the Over The Counter Drugs Market size is expected to reach USD 137.39 billion.
Who are the key players in Over The Counter Drugs Market?
Johnson and Johnson, Perrigo Company Plc, Bayer AG, Sanofi and Pfizer are the major companies operating in the Over The Counter Drugs Market.
Which is the fastest growing region in Over The Counter Drugs Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Over The Counter Drugs Market?
In 2024, the North America accounts for the largest market share in Over The Counter Drugs Market.
What years does this Over The Counter Drugs Market cover, and what was the market size in 2023?
In 2023, the Over The Counter Drugs Market size was estimated at USD 132.60 billion. The report covers the Over The Counter Drugs Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Over The Counter Drugs Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What factors are driving the Over-the-counter (OTC) Drugs Market?
The factors driving the Over-the-counter (OTC) Drugs Market are a) Development of new and improved OTC medications addressing diverse health concerns and preferences b) Growing adoption of e-commerce platforms offering convenient purchase and delivery of OTC products
Over The Counter Drugs Industry Report
The global over-the-counter (OTC) drugs market is on an upward trajectory, poised for significant expansion, with North America at the forefront due to a preference for OTC over prescription drugs, alongside a rise in self-medication trends in Europe and Asia Pacific. This growth is propelled by the increasing demand for self-medication, a shift from prescription to OTC drugs as a cost-saving measure, and the introduction of new products. Key trends shaping the market include the transition from prescription (Rx) to OTC drugs and the emergence of private-label products, with industry leaders innovating to address consumer health needs. Despite challenges such as incorrect self-diagnosis and potential side effects, the market is dominated by cold and cough remedies, analgesics, and vitamins and minerals as leading product segments, with drug stores and retail pharmacies serving as the primary distribution channels. For detailed insights and forecasts, Mordor Intelligence™ provides a comprehensive analysis, available for download as a free report PDF.
