Over The Counter Drugs Market Size

OTC 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 COVID-19 pandemic has turned the spotlight on over the counter (OTC) drugs market, though the healthcare systems have been significantly impacted. For instance, according to an article published by ScienceDirect, in June 2022, the most common OTC drugs used during the COVID-19 pandemic were antipyretics, antihistamines, cough suppressants, etc. However, according to an article published by the National Library of Medicine, in June 2022, more dangerous drugs like steroids, chloroquine, and antimicrobials were also abused. The prevalence of self-medication during the COVID-19 pandemic in lower-income countries like Nigeria, Bangladesh, Peru, and Togo varies from 34% to 84% for various symptoms like fever, cough, cold, nasal congestion, fatigue, etc. which was considered very high. Even though the market is gradually stabilizing as COVID-19 cases are declining, there is still fear among people regarding infection, which is expected to impact the market's growth.

The growth in the OTC drug market is attributed to the high cost of Rx drugs leading to shifting towards OTC drugs and increasing approval of OTC drugs. For instance, according to an article published by Bloomberg L.P., in July 2022, Americans spend an average cost of USD 1,300 per person on prescription drugs per year. An average launch price of a new drug in the US in 2021 was USD 180,000 for a year's supply. Such a rise in the price of a prescription drug is expected to increase the demand for self-medication with over-the-counter (OTC) drugs. Additionally, as per an article published by Frontiers Media S.A., in August 2021, self-medication with over-the-counter (OTC) medicines is becoming an increasingly popular practice around the world. As per the same source, the global prevalence rate of self-medication ranged from 11.2% to 93.7%, depending on the target population and country. Thus, the high cost of Rx drugs leading to the use of OTC drugs is expected to drive market growth.

Furthermore, the key market players' increasing product innovation supports the market growth over the forecast period. For instance, in March 2021, Hisamitsu Pharmaceutical Co. Inc. introduced Salonpas Arthritis Pain Relief Gel. This medication, diclofenac at prescription strength, was permitted for over the counter (OTC) use by the Food and Drug Administration (FDA). Similarly, in March 2022, Perrigo received FDA approval for the OTC use of Nasonex 24-hour allergy (mometasone furoate monohydrate) 50mcg. Such increases in OTC drug launches are expected to drive market growth over the forecast period. Thus, the abovementioned factors are impacting the market 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.