OTC Consumer Health Market Is Estimated To Witness High Growth Owing To Opportunity Of Rising Adoption Of Self-Medication Practices
Over the Counter (OTC) consumer health products refer to medications that can be purchased without a doctor’s prescription. Examples of OTC products include pain relievers, cough and cold medicines, digestives, and nutritional supplements. These products provide relief from common ailments and are convenient to access when primary healthcare is unavailable. Growing awareness about minor ailment treatment and favorable government policies promoting self-care have led to increased adoption of self-medication practices globally.
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 6.2% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Rising adoption of self-medication practices amongst consumers presents a lucrative opportunity for players in the OTC consumer health market. Self-treatment has shifted from being an occasional practice to becoming a lifestyle for both urban and rural populations. People are increasingly taking charge of their own healthcare by resorting to OTC products for quick relief from minor health issues. This has reduced dependency on doctor visits, thereby lowering treatment costs. Continued education campaigns by manufacturers on appropriate OTC product usage and benefits of self-care are encouraging more customers to self-medicate. If leveraged well through effective marketing strategies, this emerging trend of self-medication can help boost sales volumes in the global OTC consumer health market during the forecast period.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate due to the established distribution channels and brand loyalty of existing companies. However, the growth of e-commerce stores has lowered entry barriers.
Bargaining power of buyers: The bargaining power of buyers is high given the availability of substitutes and price sensitivity of buyers. Buyers can easily switch to alternative products if prices increase substantially.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are several ingredient suppliers and brands are not dependent on a single supplier.
Threat of new substitutes: The threat of new substitutes is moderate to high as new innovative products with additional health benefits regularly enter the market.
Competitive rivalry: The competitive rivalry in the market is high among existing players due to the presence of many global and local brands.
SWOT Analysis
Strengths: The OTC consumer health market has grown due to self-medication trends and rising health awareness. It offers convenient access to common healthcare products without prescriptions.
Weaknesses: Lower brand loyalty compared to prescribed drugs. Fake and low-quality products undermine some genuine brands.
Opportunities: Growing geriatric population increases demand for joint pain relief, digestive remedies. E-pharmacies facilitate improved access in rural areas.
Threats: Strict regulations can impact product availability. Economic slowdowns may reduce discretionary healthcare spending.
Key Takeaways
The Global OTC Consumer Health Market Demand is expected to witness high growth between 2023-2030 supported by rising health awareness, growing e-commerce penetration and an aging population. 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 6.2% over the forecast period 2023 to 2030.
Regional analysis:
North America dominates currently due to higher healthcare expenditures and disposable incomes. However, Asia Pacific is growing at the fastest rate led by China, India and other developing nations. Rising incomes are boosting healthcare access in the region.
Key players operating in the OTC consumer health market are CIECH SA, Ciner Resources Corporation, Genesis Energy LP, GHCL Limited, Lianyungang Soda Ash Co. Ltd, NIRMA LIMITED, Şişecam Group, Solvay, Shandong Haihua, Group Co. Ltd, and Tata Chemicals Ltd. These companies invest extensively in new product development and expanding into high potential markets. For example, Solvay launched a comprehensive osteoarthritis therapy portfolio.
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