July 16, 2024
OTC Consumer Health Market

OTC Consumer Health Market is Estimated To Witness High Growth Owing To Population Aging

The OTC Consumer Health Market is estimated to be valued at US$ 196.4 Bn in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The OTC consumer health market consists of over-the-counter medicines and other products which are intended for self-diagnosis, self-treatment or improving health and well-being. Products catering to common ailments such as pain, fever, cold & cough, allergies, skincare, vitamins & dietary supplements, etc. help consumers maintain control over their health and condition.

Market key trends:

The rising prevalence of chronic and lifestyle diseases among the growing geriatric population globally is driving the demand for OTC drugs intended for long term management of conditions such as diabetes, arthritis, hypertension etc. As per the United Nations population report, the population aged 60 years and above is expected to nearly double from 12% to 22% between 2015 and 2050. With age progression comes deterioration in health, making the elderly more prone to diseases and need for continual healthcare. This huge aging demography is fueling the uptake of OTC medications for prevention and treatment of age-related illnesses, outside of physician supervision.

Porter’s Analysis

Threat of new entrants: The threat of new entrant is moderate as it requires large capital investment and well-established distribution channel to compete with existing players.

Bargaining power of buyers: The bargaining power of buyers is high owing to the presence of many substitute products from various brands. Buyers can switch brands easily based on price and quality.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as key raw materials used in consumer healthcare products such as active pharmaceutical ingredients and packaging materials have few substitutes and players have long term contracts with suppliers.

Threat of new substitutes: The threat of substitutes is high as many innovative products catering specific needs are regularly introduced in the market.

Competitive rivalry: Intense competition exists among key players to gain market share.

SWOT Analysis

Strength: Wide product portfolio and global presence of key players. Established brand names and product loyalty among consumers.

Weakness: High research and marketing costs for new product development. Stringent regulations for new product approval.

Opportunity: Rising health consciousness and increased spending on preventive healthcare. Untapped growth potential in emerging markets.

Threats: Price wars and private label brands offering similar products at lower costs. Supply chain and production disruptions due to pandemic.

Key Takeaways

The Global OTC Consumer Health Market Demand is expected to witness high growth, exhibiting CAGR of 3.9% over the forecast period, due to increasing health consciousness among consumers and growing preference for self-medication. The market was valued at US$ 196.4 Bn in 2023 and is projected to reach US$ 278.6 Bn by 2030.

The US dominates the global market owing to high healthcare expenditure and early adoption of new products. According to estimates, the US market accounted for over 30% of global market revenue in 2023. China is expected to be the fastest growing market in Asia Pacific driven by rising living standards, large population and increased healthcare investments.

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. Major players are focusing on expanding product portfolio through mergers, acquisitions and new product launches to strengthen their market position.

 

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