Over-the-counter (OTC) drugs are medicines sold directly to a consumer without a requirement for a prescription from a healthcare professional, as opposed to prescription drugs, which may be supplied only to consumers possessing a valid prescription. In several countries, OTC drugs are selected by a regulatory agency to ensure that they contain ingredients that are safe and effective when used without a physician's care. OTC drugs are usually regulated according to their active pharmaceutical ingredients (API) rather than final products. By regulating APIs instead of specific drug formulations, governments of countries allow manufacturers the freedom to formulate ingredients, or combinations of ingredients, into proprietary mixtures. The term over-the-counter (OTC) refers to a medication that can be purchased without a medical prescription. In contrast, prescription drugs require a prescription from a doctor or other healthcare professional and should only be used by the prescribed individual. Some drugs may be legally classified as over-the-counter (i.e., no prescription is required), but may only be dispensed by a pharmacist after an assessment of the patient's needs or the provision of patient education. Regulations governing where drugs may be sold, who is authorized to dispense them and whether a prescription is required vary greatly between countries.
Global OTC Consumer Health Market is estimated to be valued at US$ 196.4 Bn in 2022 and is expected to exhibit a CAGR of 3.9% over the forecast period (2022-2030).
Figure 1: Global OTC Consumer Health Market Share (%) Analysis, By Product Type, 2022
Increasing product launches by market players are expected to drive the global OTC consumer health market growth over the forecast period.
Increasing product launches by market players is expected to drive the global OTC consumer health market growth over the forecast period. For instance, on June 25, 2019, Hamdard Laboratories, a Unani pharmaceutical company had launched 12 Over the Counter (OTC) medicines that helps to boost immunity. The new range of products contain ingredients such as Aswagandhi, Kalonji, Gilo, and Jamun powder along with Zafran which are known for strengthening body immunity and overall health.
Increasing product approvals by regulatory authorities are expected to drive growth of the global OTC consumer health market over the forecast period.
Increasing product approvals by regulatory authorities are expected to drive growth of the global OTC consumer health market over the forecast period. For instance, on October 04, 2021, The U.S. Food and Drug Administration (FDA) issued an emergency use authorization (EUA) for the ACON Laboratories Flowflex COVID-19 Home Test, an over-the-counter (OTC) COVID-19 antigen test, which adds to the growing list of tests that can be used at home without a prescription. This authorization aims to increasing the availability of appropriately accurate and reliable OTC tests to meet public health needs and increase access to testing for consumers.
Global OTC Consumer Health Market- Impact of the Coronavirus (COVID-19) Pandemic
Since the COVID-19 virus outbreak in December 2019, the disease has spread to over 100 countries across the globe and the World Health Organization declared it a public health emergency on January 30, 2020.
The COVID-19 can affect the economy in three main ways: by directly affecting the production and demand of drugs, by creating disruptions in distribution channels, and through its financial impact on firms and financial markets. Due to nationwide lockdowns, several countries such as China, India, Saudi Arabia, the U.A.E., Egypt, and others are facing problems with regard to the transportation of drugs from one place to another.
The COVID-19 pandemic also had a positive impact on the global OTC consumer health market owing to the increasing approvals for OTC healthcare products by regulatory authorities. For instance, on January 27, 2022, The U.S. Food and Drug Administration (FDA) issued an Emergency Use Authorization (EUA) for the InteliSwab COVID-19 Rapid Test developed by OraSure Technologies, Inc., a company in the medical device industry for developing diagnostic testing kits. InteliSwab COVID-19 Rapid Test is used for home use as Non-prescription product for the qualitative detection of nucleocapsid protein antigen from SARS-CoV-2.
|Base Year:||2021||Market Size in 2022:||US$ 196.4 Bn|
|Historical Data for:||2017 to 2020||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||3.9%||2030 Value Projection:||US$ 267.0 Bn|
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
|Restraints & Challenges:||
Global OTC Consumer Health Market– Restraints
Withdrawal of over-the-counter (OTC) drugs by regulatory authorities is expected to restraint market growth over the forecast period. For instance, on April 01, 2020, The U.S. Food and Drug Administration (FDA) had announced that it was requesting manufacturers to withdraw all prescription and over-the-counter (OTC) ranitidine drugs from the market immediately. This is the latest step in an investigation of a contaminant known as N-Nitrosodimethylamine (NDMA) in ranitidine medications (commonly known by the brand name Zantac). The agency has determined that the impurity in some ranitidine products increased over time and when stored at higher than room temperatures and resulted in consumer exposure to unacceptable levels of this impurity. As a result of this immediate market withdrawal request, ranitidine products not available in new or existing prescriptions or OTC use in the U.S.
Global OTC Consumer Health Market– Regional Analysis
On the basis of region, the global OTC consumer health market is segmented into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa.
Among regions, North America market is expected to witness significant growth, owing to key companies in market focusing on adopting inorganic strategies such as agreements with other market players. For instance, on July 29, 2022, Dr. Reddy’s Laboratories Ltd., a pharmaceutical company, announced that it had entered into a licensing agreement with Slayback Pharma LLC, a specialty pharmaceutical company to acquire rights in Slayback’s Brimonidine Tartrate Ophthalmic Solution 0.025%, the private label equivalent of Lumify in the U.S. Lumify is an over-the-counter (OTC) eye drop that can be used to relieve redness of the eye due to minor eye irritations. The agreement also provides Dr. Reddy’s exclusive rights to the product outside the U.S.
Figure 2: Global OTC Consumer Health Market Value (US$ Bn), by Region, 2022
Global OTC Consumer Health Market– Competitive Landscape
Major players operating in the global OTC consumer health market include 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.
Over-the-counter (OTC) medicines are drugs that are available without a prescription. Some OTC medicines are used to relieve aches, pains, and itches. Some prevent or cure diseases such as tooth decay and athlete's foot. Other OTC health products may help to manage recurring problems such as migraines and allergies. They are safe and effective when followed as directed by the directions on the label and as directed by a healthcare professional. Generic and brand name products for allergy, sinus, cold and flu, pain relief, home health care and daily living, support braces and wraps, dental and oral health, eye and ear care, first aid, smoking cessation, diabetes care, foot care, digestive health, incontinence, skin care, sleep aids, and vitamins are among the categories of covered OTC items. The benefits of using OTC over prescription drugs include easy accessibility, lower costs, convenience, and customer-empowering qualities. In turn, these factors contribute to increase adherence to therapy, with a positive impact on disease outcomes, healthcare costs and resource consumption.
Increasing inorganic activities such as agreements among market players is expected to drive growth of the global OTC consumer health market over the forecast period.
For instance, on January 24, 2022, Hindustan Foods Limited, a company manufacturing and selling nutritional food products and cereal based food products had signed a share purchase agreement with Reckitt Benckiser India Pvt. Ltd., a consumer goods company to acquire the entire issued Share Capital of Reckitt Benckiser Scholl India Private Limited (RBSIPL). The aim of this agreement was to mark Hindustan Foods Limited's entry into Over-the-counter (OTC) Healthcare and Wellness segment as a contract manufacturer.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.