Market Research Report
North America Over The Counter Drugs Market - Forecasts from 2022 to 2027
|North America Over The Counter Drugs Market - Forecasts from 2022 to 2027|
Published: May 17, 2022
Knowledge Sourcing Intelligence
Content info: 95 Pages
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North America over the counter drugs market is projected to grow at a CAGR of 5.41% during the forecast period to reach US$52.995 billion by 2027, from US$36.657 billion in 2020.
Over-the-counter (OTC) medications are pharmaceuticals that are considered safe to purchase without the need for a prescription from a physician. These products are sold lawfully without a prescription in hospital pharmacies, medical stores, and occasionally even supermarkets. Common symptoms treated with OTC drugs include the common cold, bodily ache, indigestion, allergy and flu, acne, and other basic health problems. Consumer confidence has grown as a result of product developments in OTC pharmaceuticals, which has resulted in increased demand for OTC drugs. According to the Consumer Healthcare Products Association, over 93 percent of Americans prefer to cure minor symptoms with over-the-counter (OTC) medications before seeking professional help. Furthermore, factors such as easy availability, low cost, and the lack of a prescription required to purchase these pharmaceuticals, among others, are projected to fuel market expansion in the region.
The easy accessibility and affordability of OTC drugs will propel market growth in North America.
In 2018, the Food and Drug Administration (FDA) issued draft guidelines to make more common pharmaceuticals available to consumers without a prescription from a doctor. Officials claim that the change will make medicine purchases more convenient and affordable while maintaining high safety standards. In addition, the United States President signed the Over-the-Counter Monograph Safety, Innovation, and Reform Act into law in March 2020. The goal of this bill is to modernize the FDA's regulation of over-the-counter monograph medications. According to Consumer Healthcare Products Association (CHPA), there are more than 80 types of OTC drugs in the United States, with up to 3,00,000 marketed products. OTC medications are predicted to save $102 billion in the United States each year, with $25 billion saved owing to their use and $77 billion saved due to the avoidance of unnecessary hospital visits. In addition, self-treatment is used to treat 70-90 percent of all sickness episodes. Similarly, people in the United States spend an average of US$ 442 on OTC products each year.
Cough and cold medicines for children alone were up 564 percent over the spring of 2021, according to Catalina's Customer Intelligence Database, which scans billions of bar codes to pull three years' worth of U.S. buyer data. According to the American Academy of Dermatology, acne is the most common skin condition in the United States, affecting about 50 million people each year. The growing prevalence of these diseases in the region is expected to propel the demand for over-the-counter (OTC) drugs.
The increasing developments by key players in the market will fuel the growth of OTC drugs in the region.
In July 2019, Pfizer announced that Upjohn, its off-patent medicines company, would merge with Mylan, a generic drugmaker, to form a new pharmaceutical company with expected 2020 revenues of up to $20 billion. Upjohn and Mylan's combined portfolio of prescription medications, complex generics, over-the-counter drugs, and biosimilars is projected to be sustainable, diversified, and unique. An established infrastructure and supply chain, as well as a solid management team, will help it succeed. Furthermore, in August 2020, Takeda Pharmaceutical revealed to sell its nonprescription medicines business to Blackstone Group, a prominent American private equity firm, for approximately 250 billion yen. The divested portfolio included a range of over-the-counter (OTC) medications and health products with total revenues of about JPY 60.0 billion in the fiscal year 2019. Alinamin, the company's best-selling product and Japan's first vitamin B1 preparation, and Benza, a cold cure, were among Takeda's strong regional brands. The firm believes that Alinamin Pharmaceuticals will be well-positioned under Blackstone to continue growing and enhancing its product portfolio in the years ahead to meet changing customer needs. Moreover, in November 2020, Amazon Pharmacy, Amazon's online and mobile prescription medication ordering and fulfillment service, was opened after two years of its $753 million acquisition of the prescription medicine delivery business PillPack. Following the launch of its line of over-the-counter drugs in 2019, this is arguably Amazon's most comprehensive move into the healthcare business to date, one that could unlock significant new revenue prospects for the business, especially as the ongoing COVID-19 pandemic compels buyers toward more remote care and the use of online channels for all of their shopping necessities. These developments by the key players in the region will fuel the over-the-counter drugs market.
The COVID-19 pandemic had a distinct effect on different OTC products. The outbreak, for example, increased awareness of the significance of self-care and boosted growth in categories like vitamins and minerals and nutritional supplements. Cough and cold drugs were in high demand in the region. Additionally, sales of skincare items and stomach and intestinal cures have decreased. Pain relievers, known as analgesics, were in high demand throughout the pandemic.
Cough, Cold, and Flu Products
Oral Health Products