Report Overview

The global over-the-counter drug market was pegged at US$ 169.1 billion in 2021 and is expected to register a revenue CAGR of 8.2% during the forecast period.

Market Fundamentals

Over-the-counter drugs, also known as non-prescription drugs, can be used with or without a prescription by a healthcare professional. According to the Food and Drug Administration, these medicines are safe and effective when a person takes them by following the directions on the label or as directed by a health care professional. OTC medicines have brand names as well as generic and store brand names. OTC medicines are used to relieve aches, pains, coughs, colds, headaches, itches, and as dietary supplements. They are presently accessible in convenience stores, pharmacies, gas stations, and supermarkets across the globe. Increasing R&D activities and high investments from governments across the globe will promote the revenue growth of the market. Furthermore, OTC products are easily available at any drug store and are cost-effective too. Thus, the easy availability & affordability of OTC drugs will boost the revenue growth of the OTC drugs market. The existence of a distinct range of effective drugs and technological advancements associated with OTC drug applications are expected to support the market revenue growth during the forecast period.

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Market Dynamics

The growing use of OTC medicines for treating common illnesses is one of the major factors fuelling the revenue growth of this market. The increasing geriatric population is one of the major reasons driving the revenue growth of the over-the-counter drugs and dietary supplements market. Moreover, the disposition of pharmaceutical companies toward OTC drugs from RX drugs and improving awareness for vitamin supplements and weight loss products is likely to create substantial demand in this market. Furthermore, self-medication practices can assist in controlling chronic diseases, reducing absence from work, and saving limited medical resources from being consumed during minor conditions. 

Market Ecosystem

The global over-the-counter drugs market is analyzed from two perspectives: product, distribution channel, and region. 

Over-the-Counter Drugs Market by Product

Based on product, the global over-the-counter drugs market is segmented into analgesics & pain relievers, cough, cold & flu products, vitamins & minerals supplements(VMS), gastrointestinal products, dermatological products, ophthalmic products, sleep aids, weight loss/dietary supplements, and smoking cession aids, and others. 

The weight loss/dietary supplement and VMS OTC products segment is expected to register the highest revenue CAGR during the forecast period. This high revenue growth is attributed to the rising understanding of the general population about health, the rise in the consumption of junk food and alcohol, and the adoption of sedentary life. 

Analgesics, on the other hand, are expected to grow rapidly during the forecast period. For instance, OTC analgesics are frequently used to treat and manage headaches, fever, toothache, musculoskeletal injuries and disorders, and menstrual cramps. The reasons for self-medication of analgesics are primarily pain related. According to an article published in September 2021 by Interventional Pain and Spine Centre (IPSC), 19% of the Indian adult population suffers from chronic pain of some kind, with females having a 25% prevalence.

Over-the-Counter Drugs Market by Distribution Channels

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Based on the distribution channel, the global over-the-counter drugs market is segmented into drug stores & retail pharmacies, hospital pharmacies, online pharmacies, and others. 

The drugstore and retail pharmacy segment is expected to account for the largest market revenue share during the forecast period, owing to the growing number of retail pharmacies offering OTC products and rising patient preference for these products in stores and retail pharmacies. 

Furthermore, due to the increased access to OTC drugs and the availability of various OTC products, the hospital pharmacy segment accounts for the second largest revenue share in the market. 

Apart from this, online pharmacy is also expected to register significant revenue growth due to increasing internet penetration in emerging markets and the discounts offered by online pharmacies.

Over-the-Counter Drugs Market by Region

Based on the region, the global over-the-counter drugs market is segmented into North America, Europe, Asia Pacific, and the Rest of the World. 

North America accounts for the largest revenue share in the global over-the-counter drugs market, owing to a well-established healthcare structure, followed by Europe. The dominance of North America can be attributed to the growing patient awareness regarding the consumption of OTC drugs and leading to self-medication practices. Furthermore, the leading trend among pharmaceutical companies to switch from Rx to OTC drugs is also expected to support the market revenue growth in this region. 

The Asia Pacific OTC drugs market is expected to register a significant revenue growth rate during the forecast period. The high revenue growth rate of this region can be attributed to the growing number of pharmacies, the easy affordability of over-the-counter drugs, and the booming healthcare infrastructure in the region. Furthermore, the rising use of OTC drugs to treat minor health issues such as colds, coughs, and headaches is playing a key role in driving the revenue growth of the OTC drugs market in this region. Apart from this, the launch of new OTC medicines in the region owing to the increasing shift from prescription to OTC drugs is supporting the market revenue growth.

Competitive Landscape

Some of the prominent players operating in the global over-the-counter drugs market include:

• Johnson & Johnson
• Novartis AG
• Teva Pharmaceuticals
• GlaxoSmithKline plc
• Bayer AG
• PGT Healthcare
• Pfizer Inc
• Boehringer Ingelheim
• Merck KGaA
• Reckitt Benckiser Group PLC
• Glenmark Pharmaceuticals Ltd
• Sanofi-Aventis U.S. LLC
• Takeda Pharmaceutical Company Limited
• Among others

Strategic Developments

• In October 2020, Dr. Reddy's Laboratories launched OTC Famotidine tablets USP, 10 mg, and 20 mg, the store-brand equivalents of the original strength and maximum strength Pepcid AC, in the U.S. market. They continued to expand the OTC Antacid portfolio for their consumer and customers. This launch will help to fulfill Ranitidine withdrawal which is an important therapy gap created by the Antacids market 
• In July 2020, Novartis launched a portfolio of 15 generic and over the counter (OTC) medicines from the Sandoz division to address the urgent unmet needs of low- and lower-middle-income countries to treat patients with COVID-19 symptoms. During the pandemic and until a vaccine or curative treatment is available, the portfolio will be sold at no profit to governments in up to 791 eligible countries.
• In August 2020, Takeda Pharmaceuticals signed an agreement to sell its Consumer Healthcare unit to the investment firm - The Blackstone Group for JPY 242 billion (US$2.28 billion)
• In December 2020, Sonoma Pharmaceuticals, Inc. and Crown Laboratories, Inc. entered into a license & supply agreement for the exclusive rights to sell and market dermatological OTC products in the U.S. market. After this integration, both companies can provide greater patient access and help to improve the outcome.
• In March 2021, CVC Capital Partners Ltd. acquired the European OTC pharmaceutical company - Cooper Consumer Health.

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