July 19, 2024

Growing Preventive Health Awareness driving growth of the OTC Consumer Health Market

The global OTC Consumer Health Market is estimated to be valued at US$ 204.06 Mn in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The OTC consumer health market comprises products that can be purchased without a prescription from a healthcare professional. These include analgesics, cough/cold/flu remedies, vitamins, minerals, herbs and other nutritional supplements. Advantages of OTC healthcare products include convenience and ease of access without needing a doctor’s visit for minor ailments. They provide solutions for common symptoms and help consumers manage their health in day-to-day life. The demand for these products has increased as people focus more on preventive health and well-being.

Market key trends:

One of the major trends in the OTC consumer health market is the growing preference for herbal and natural products over pharmaceutical drugs. Consumers are increasingly seeking herbal alternatives to manage health as they perceive them to be safer with fewer side effects. Manufacturers are responding to this demand by introducing herbal supplements for conditions like indigestion, sleeplessness and muscle aches. Another notable trend is the rising demand for customized OTC products tailored to specific consumer needs. This has prompted sellers to offer tools like online health risk assessments and product recommenders. Growing e-commerce has also boosted access and availability of a wide variety of OTC products directly to consumers.

Porter’s Analysis

Threat of new entrants: Low investment requirement and established brand loyalty acts as a barrier for new entrants in the OTC consumer health market Size.

Bargaining power of buyers: Buyers have high bargaining power due to availability of substitute products from many global brands in the market.

Bargaining power of suppliers: Major players source raw materials from a large pool of suppliers globally, thereby facing low threat from suppliers.

Threat of new substitutes: Threat from substitutes is moderate as switching costs are relatively low for consumers.

Competitive rivalry: Intense competition exists among existing major brands to gain market share.

Key Takeaways

The global OTC consumer health market is expected to witness high growth, exhibiting CAGR of 3.9% over the forecast period, due to increasing health awareness among consumers. The market size for 2023 is US$ 204.06 Mn.

Regionally, North America dominates the OTC consumer health market attributed to high healthcare expenditure and increasing prevalence of lifestyle diseases in the region. Asia Pacific is expected to witness the fastest growth owing to rising disposable income and growing population.

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 new product launches and geographical expansion to strengthen their market position.