Global Over-the-Counter drug market was valued at USD 141.6 billion in 2018, expected to grow with a CAGR of 7.6% over the forecast period of 2019-2025.
Infinium Global Research Analysts
Global Over-the-Counter Drugs Market: Consumer Behavior Analysis by Countries, Buying Pattern Analysis, Demographics, Trends Analysis, Survey Findings and Results, Leading Companies and their Market Strategies
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Published : May, 2020
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Rep Id : OTCDM1552020
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No. of Pages : 185
Infinium Global Research and Consulting Solutions has
published a comprehensive research study based on a survey conducted to analyze
the buying patterns, consumer behavior and impact of pricing on buying
decisions. The report also provides insights into the marketing strategies and
steps were taken by the companies to retain their market position in the local as
well as the global market. The study also provides insights into the factors
affecting the buying decisions, consumer preferences, and the demographic
factors promoting the growth of the products of the global over-the-counter
drug market.
The global pharmaceutical industry is valued well above USD
1 trillion by 2019. The growing prevalence of diseases and an increase in the
elderly population across the world has propelled the industry for the past few
decades. Over-the-counter drugs are one of the segments in the pharmaceutical
industry that has registered healthy growth over the past few years. While
buying over-the-counter drugs, the patients do not require a prescription from
a physician or doctor. Unlike prescription drugs, OTC drugs are easy to access
and widely available. Moreover, OTC drugs are used to treat common ailments
including cold, cough, allergic reactions, acidity, and others.
Growing Incidences of Contagious Diseases Augment the Growth of the Global Over-The-Counter Drugs Market
According to Infinium Global Research and Consulting
Solutions, the global over-the-counter drug market was valued at USD 141.6 billion in 2018 and it is expected to grow with a CAGR of 7.6% over the
forecast period of 2019-2025. The key players in the OTC drugs market are
leveraging the brand equity of the major products during their patent period to
improve sales and revenue. This, in turn, is majorly driving the global over-the-counter
drugs market. Moreover, the growing trend of self-medication among the
population is also contributing to the growing demand for OTC drugs. The
patients continue to buy a particular medicine following an initial
prescription from the doctor. In addition, factors such as increasing
globalization, shrinking new product pipeline, increasing cost of new drug
discovery, stringent safety rules of FDA, and entry of new players in the market
are further augmenting the growth of the global over-the-counter drugs market.
The survey conducted by Infinium Global Research and Consulting Solutions found that majority of people across the world take advice from the pharmacist before buying an OTC medication. The relation between the local pharmacists and the consumers or patients plays an important role in the higher trust of the consumer on pharmacists. The frequent visits to the local pharmacy stores lead to higher interaction with the pharmacists. This, in turn, improves the relationship between consumers and pharmacists, which ultimately impacts the decision making of the consumers. Moreover, the pharmacists are easy to access than the professional physicians or doctors. If a patient wants to consult a doctor regarding a common health issue, he or she has to get an appointment first, and sometimes doctors could charge fees for their counseling or advice. Thus, people tend to take advice from pharmacists rather than doctors regarding common health conditions and their OTC treatment.
Figure 1. Influence on Buying Decision of Over-the-Counter Drugs in the US
Source: Infinium Global Research Analysis
The United States, China, and Germany among Top Markets for Over-The-Counter Drugs
According to the findings in the report, the United States
of America and China along with countries in Europe are the best markets for over-the-counter
drugs. Europe and North America together make nearly 60% of the total sales of OTC
drugs in the world. The US is the leading country in terms of sales in the
global over-the-counter drug market followed by China and Germany. The
increasing trend of self-medication and rising need to cut healthcare costs
are the major drivers for the sale of OTC drugs in western countries. Moreover,
the higher geriatric population and availability of numerous products in the
community pharmacies are the major factors contributing to the growth of
Chinese OTC drugs market. On the flip side, the sale of over-the-counter drugs
in developing countries such as India is anticipated to grow rapidly. Factors
including improving economic and healthcare conditions and higher prevalence of
common ailments are majorly influencing the sale of over-the-counter drugs in
developing countries.
Figure 2. Top Countries in the Global Over-the-Counter Drug Market in 2019 (Revenue % Share)
Source: Infinium Global Research Analysis
North America Generated the Highest Revenue from Over-The-Counter Drugs
In terms of geography, North America generated the highest
revenue in the global OTC drugs market. The growing trend of self-medication
among the population in the region drives the growth of the over-the-counter
drugs market in North America. Patients purchase OTC drugs from a nearby
retailer for any visible mild symptoms without visiting a medical institution.
Moreover, favorable reimbursement policies support the growth of the OTC drug market
in the North American region. Several insurance policies available in the US
offer some coverage for OTC drugs. Moreover, the Asia Pacific region is
projected to grow with the fastest rate owing to the increasing number of
approvals given for several prescription drugs to be sold as OTC drugs. For
instance, in Japan, the antipyretic analgesic Loxonin S and Alesion, treatment for allergic rhinitis were approved for OTC sales in 2010.
Research Methodology
Primary Research
Our primary research involves extensive interviews and
analysis of the opinions provided by the primary respondents. The primary
research starts with identifying and approaching the primary respondents, the
primary respondents are approached through
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Key Opinion Leaders associated with Infinium
Global Research
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Internal and External subject matter experts
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Professionals and participants from LinkedIn,
Hoovers, Factiva, and Bloggers
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Our primary research respondents typically
include
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Executives working with leading companies in the
market under review
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Product/brand/marketing managers
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CXO level executives
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Regional/zonal/ country managers
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Vice President level executives.
Methods of Primary
Research
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Computer-assisted telephone interview (CATI)
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Computer-assisted personal interview (CAPI)
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Computer-assisted web interview (CAWI)
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Questionnaires/Surveys
Secondary Research
Secondary research involves extensive exploring through the
secondary sources of information available in both the public domain and paid
sources. At Infinium Global Research, each research study is based on over 500
hours of secondary research accompanied by primary research. The information
obtained through the secondary sources is validated through the crosscheck on
various data sources. The secondary sources of the data typically include
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Company reports and publications
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Government/institutional publications
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Trade and associations’ journals
· Databases such as WTO (World Trade
Organization), OECD (The Organization for Economic Co-operation and Development),
Hoovers, Factiva, and the World Bank, among others.
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Websites and publications by research agencies
