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The Global Over-the-counter Drug Market size is projected to reach a value of USD 58.54 billion with a CAGR of 6.53% between 2022 and 2027. The growth of the market depends on several factors, including new product launches in the global drug market, the rising prevalence of diseases and OTC drug use, and a favorable regulatory framework for OTC drugs. This market research and report includes in-depth information on the key market drivers, trends, and challenges during the forecasted period.
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The rising prevalence of diseases and pharmaceutical use is notably driving the drug market growth. The global prevalence of acute and chronic diseases including cardiovascular, neurological, orthopedic, and respiratory diseases is increasing significantly. More than 550,000 people in the United States are diagnosed with heart failure each year. According to the Centers for Disease Control and Prevention (CDC), approximately 790,000 people in the United States have a heart attack each year, of which approximately 580,000 have a first heart attack and 210,000 have a recurrent heart attack.
Risk factors such as diabetes, hypertension, tobacco use, and obesity are increasing the prevalence of chronic cardiac, neurological, and orthopedic diseases. With the rise of chronic diseases, the use of medicines has become more widespread as patients seek effective and convenient treatment options for their chronic diseases. For example, aspirin is widely used to prevent heart attacks, strokes, and other cardiovascular diseases in patients with a history of heart disease or who are at high risk of developing heart disease. Similarly, ibuprofen and acetaminophen are commonly used to reduce pain and inflammation associated with conditions such as arthritis, chronic back pain, and headaches. Therefore, increasing chronic diseases across the globe will lead to increased demand for pharmaceuticals, which will boost the growth of the market during the forecast period.
The increasing geriatric population and increasing healthcare expenses is a key trend influencing the drug market growth. The elderly population around the world is increasing year by year. Older people may prefer medicines for symptom relief.
Price sensitivity issues associated are challenging the drug market growth. A major challenge for the global market is price sensitivity. Customers are very price sensitive as medicines are seen as less necessary than prescription drugs. As a result, they are more likely to opt for cheaper generic drugs or abandon treatment altogether. This puts pressure on manufacturers to keep prices low, negatively impacting profit margins and may limit investment in R&D. Another issue related to price sensitivity is the need for competitive pricing. As more players enter the market, companies must price their products competitively to remain relevant. This often leads to lower prices and lower profit margins. This phenomenon may also contribute to the lack of differentiation between similar products, which may adversely affect the growth of the market. When competition drives prices down, companies are forced to cut costs, which may adversely affect product quality and efficacy. Overall, price sensitivity is having a significant impact on the drug market, limiting its potential for growth and innovation during the forecast period.
The market share growth by the oral segment will be significant during the forecast period. The most practical, economical, and common method of drug administration is oral administration. Oral drugs are drugs that are taken orally, either as tablets, capsules, or liquids. The small intestine is normally the major site of drug absorption, and the amount of drug absorbed across the intestinal epithelium affects drug bioavailability. This is the most preferred route due to its advantages such as non-invasiveness, patient compliance, and convenience of drug delivery.
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Distribution Channel Type - Online Segment
Online drug stores had the smallest market share within the global market in 2022. However, following the COVID-19 pandemic, this segment of Online drug stores is experiencing a rapid growth rate compared to traditional offline channels. A digital pharmacy operates as an Internet-based company selling medications, encompassing both legitimate and illegitimate outlets, predominantly in countries like India. These digital pharmacies include independent online-only platforms and those formed through partnerships among pharmacies. Current trends indicate a surge in e-commerce activities, including online shopping for prescription and non-prescription drugs, notably drug medications.
These digital pharmacies provide a convenient and accessible way for individuals to obtain drugs without the need to physically visit a brick-and-mortar store. The emergence of online drug store distribution channels has offered consumers the convenience of easily ordering online drugs using their mobile phones or computers.
The availability of medications for sale is primarily due to their classification as non-prescription drugs. Regulators meticulously evaluate these drugs based on their safety profile and the ease of self-administration, which enables their sale without a prescription. The medications for sale have widespread availability contributing to consumer convenience and ease of access for managing various health conditions. Additionally, many medications for sale address common health concerns such as pain relief, cold symptoms, allergies, and minor ailments, making them easily accessible to consumers for self-care purposes.
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North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The regional market is expected to grow during the forecast period due to several factors such as population growth and increasing disposable income. Moreover, the increase in self-medication in the region and its availability, as well as the cost-effectiveness drugs, are expected to further drive the growth of the market during the forecast period. The presence of multiple medicines providers in the region is one of the major growth drivers of the market in North America. The increasing prevalence of chronic diseases in the region is also boosting the growth of the market.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Abbott Laboratories: The company offers different types such as Abocal, Arinac, and many more. It is also involved in the manufacturing of branded generic pharmaceuticals.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The over-the-counter drugs market encompasses a wide range of products available without a prescription, catering to various healthcare needs. Retail pharmacies, online pharmacies, and mail-order pharmacies serve as primary distribution channels, offering convenience to consumers. Common categories include vitamin and dietary supplements, cold & cough remedies, and analgesics like pain relievers and anti-inflammatory analgesics. Regulatory oversight by agencies like the FDA ensures safety and efficacy, while Pharmacoepidemiology and Drug Safety research provides valuable insights. With an aging senior population and growing awareness about health and wellness, the market continues to expand globally. Collaboration between pharmaceutical and biotechnology industries, along with support from healthcare payers, drives innovation and knowledge dissemination
The market report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest market trends and analysis opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.53% |
Market growth 2023-2027 |
USD 58.54 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.37 |
Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
Performing market contribution |
North America at 41% |
Key countries |
US, Germany, UK, Japan, and China |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abbott Laboratories, Achelios Therapeutics Inc., AstraZeneca Plc, Bayer AG, BioGaia AB, Boehringer Ingelheim International GmbH, Bukwang Pharmaceutical Co. Ltd., Chr Hansen Holding AS, Cipla Ltd., CVS Health Corp., Eli Lilly and Co., GlaxoSmithKline Plc, Johnson and Johnson Services Inc., Lupin Ltd., Mankind Pharma Ltd., Novartis AG, Pfizer Inc., Reckitt Benckiser Group Plc, Sanofi SA, and Zydus Lifesciences Ltd. |
Market dynamics |
Parent market analysis, Market growth and forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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