In 2019, the North American market for OTC drugs and dietary supplements was valued at approximately US$ 131,818.3 million, with projections indicating it will reach around US$ 224,349.5 million by 2027. This growth represents a compound annual growth rate (CAGR) of 7.0% from 2020 to 2027.
The expansion of the OTC drug and dietary supplement sector can be primarily linked to increasing public awareness regarding health issues and the cost-effectiveness of OTC medications compared to prescription drugs. Nevertheless, stringent regulations imposed by the FDA on OTC products pose a significant challenge to market growth.
OTC drugs are accessible to the general public without the need for a physician's prescription. These medications cater to a variety of health concerns, including coughs, colds, diarrhea, heartburn, constipation, acne, and pain relief. Conversely, dietary supplements are also available over the counter, primarily aimed at enhancing fitness. In certain situations, particularly when an individual is severely ill or in need of specific treatment, obtaining dietary supplements with medicinal properties may necessitate a prescription from a healthcare provider. OTC products can be categorized into two main types: branded and generic.
Today, individuals are increasingly aware of common health issues such as colds, coughs, allergies, fevers, pain, acidity, diarrhea, and skin conditions. There is a growing emphasis on maintaining a healthy lifestyle and reducing the intake of junk food, which is linked to lifestyle diseases like diabetes, obesity, and cardiovascular issues. This shift towards healthier living has led to a rise in the consumption of weight-loss products and dietary supplements, including vitamins and minerals. The widespread availability of the internet has facilitated easier access to OTC drugs and dietary supplements for consumers, often at more affordable prices.
Common health problems can be seasonal or arise from minor lifestyle changes, prompting many individuals to opt for OTC medications rather than consulting a doctor. This choice often saves both time and money while providing quick relief. Additionally, government initiatives aimed at promoting health awareness have contributed to the rapid adoption of technology in healthcare and wellness, further driving the growth of the industry.
With the ongoing rise in COVID-19 cases across North America, there has been a notable increase in the purchase of dietary supplements and vitamins. Many consumers are seeking these products to boost their immunity and help mitigate the spread of the virus.
The OTC drug and dietary supplement market is categorized by product type into several segments, including analgesics, cough and cold remedies, vitamins and dietary supplements, gastrointestinal products, antacids, ophthalmic products, sleep aids, oral care items, feminine hygiene products, and others. The analgesics segment accounted for the largest market share in 2019, while the vitamins and dietary supplements segment is projected to experience the highest CAGR during the forecast period.
From a classification perspective, the market is divided into generic and branded products. In terms of formulation, it includes tablets, capsules, powders, liquids, ointments, and other forms. Distribution channels for these products are categorized into hospital and retail pharmacies, retail stores, online platforms, and additional outlets.
Key sources for this report include the World Health Organization (WHO), the World Heart Federation, the National Center for Biotechnology Information, and various company websites, which provide both primary and secondary data for analysis.