July 21, 2024

The Growing Preference For Self-Medication Drives The OTC Consumer Health Market

Consumer goods like pain relief medication, digestive aids, cough and cold remedies, vitamins and dietary supplements are commonly available over-the-counter (OTC) without a prescription from healthcare professionals. OTC drugs allow individuals to easily treat minor medical conditions and maintain general wellness without visiting a doctor. The growing preference for self-medication and greater control over healthcare needs has increased the demand for these convenient OTC products.

The global OTC Consumer Health Market Is estimated to be valued at Us$ 204.06 Mn in 2023 and is expected to exhibit a CAGR Of 3.9% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

 

Market key trends:

 


One of the key trends driving growth in the OTC consumer health market is the increasing adoption of digitally enabled healthcare. Companies are leveraging digital technologies like mobile apps, online platforms, wearable devices and sensors to enhance self-care and remote monitoring. For instance, Procter & Gamble and Amazon collaborate together to develop Halo, a smart band that tracks activity, sleep and tone of voice using non-invasive sensors. It delivers personalized health insights via companion app to empower individuals to manage well-being independently. In addition, the increasing penetration of internet and smartphone usage have boosted online sales of OTC products. E-pharmacies offer convenience of home delivery coupled with detailed product information and reviews that attract more consumers to purchase OTC drugs through digital channels.

 

Porter’s Analysis

 


Threat of new entrants: The threat of new entrants is moderate due to the established distribution channels of current market players and high research and development costs required. However, emerging online channels provide opportunities for new players.

Bargaining power of buyers: The bargaining power of buyers is high due to the availability of a large number of substitutable products from different brands. Buyers can easily switch between brands based on pricing and promotional offers.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as the OTC consumer health products industry requires raw materials that are available from multiple suppliers globally. However, suppliers of active pharmaceutical ingredients and novel technologies have some pricing power.

Threat of new substitutes: The threat of new substitutes is moderate as alternative treatment options and new product delivery methods can disrupt existing markets. Self-care and wellness trends also introduce substitute needs over time.

Competitive rivalry: The competitive rivalry is high due to the presence of many global and local players competing on the basis of pricing, innovation, marketing strategies and brand positioning.

Key Takeaways

The global OTC Consumer Health Market Demand  is expected to witness high growth over the forecast period supported by increasing health awareness and self-diagnosis practices. North America currently dominates the market supported by higher consumer spending on healthcare and wellness in countries like the United States. However, Asia Pacific is expected to emerge as the fastest growing region due to rising incomes, growth in e-commerce, and increasing health consciousness in populous nations like China and India.

Regional analysis:

 

Europe is a major market for OTC consumer health products contributed by favorable reimbursement policies and universal healthcare in countries like Germany, UK and France that encourage early treatment. Sales growth is expected to be high in Central and Eastern European nations as disposable incomes rise. Latin America and Middle East & Africa also offer lucrative opportunities for industry players.

Key players:

 

Key players operating in the OTC consumer health market are 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. The market is highly competitive with large corporations mainly focusing on innovations and branding to increase market share.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it