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February 2025
The global over the counter (OTC) drugs market size is calculated at USD 133.53 billion in 2024, grew to USD 142.27 billion in 2025, and is projected to reach around USD 251.83 billion by 2034. The market is expanding at a CAGR of 6.55% between 2025 and 2034. The rising prevalence of common infections and injuries and favorable regulatory policies drive the market.
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Over-the-counter or OTC drugs are medications given or administered to a patient without a prescription. They are generally safe and effective when taken as directed by a healthcare professional. They can cure common disorders such as aches, pains, itches, common colds, fever, and allergies. They can either relieve symptoms, prevent or cure a disease, or manage recurring problems. In many countries, they are selected by regulatory agencies to ensure they contain safe and effective ingredients. Hence, these drugs can only be dispensed by a registered pharmacist after an assessment of the patient’s needs or the provision of patient education.
The rising incidences of common bacterial, viral, and fungal infections increase the use of OTC drugs. The increasing geriatric population and growing consumer awareness boost the market. Favorable regulatory policies potentiate the use and approval of OTC drugs, augmenting market growth. They are generally preferred by a large number of the patient population as they are cost-effective and easily available. The growing consumer willingness to spend on OTC medications is another growth factor that is likely to dominate the market.
Artificial intelligence (AI) has the potential to disrupt the healthcare sector and change the healthcare landscape. AI can enhance the effectiveness, accessibility, and accuracy of OTC drugs. It can assess patient’s conditions and suggest personalized treatment regimens to patients. AI can provide tailored dosages and routes to improve patient treatment outcomes. It can significantly reduce the workload on pharmacists. Additionally, it can predict treatment outcomes, such as identifying drug-related allergies or other side effects. AI also enables people to monitor their health conditions closely, leading to the adoption of better measures. The advent of telemedicine and the Internet of Things (IoT) increased the accessibility of OTC drugs. Moreover, AI and machine learning (ML) algorithms can identify trends and demand for particular OTC drugs in a region and streamline the supply chain.
Growing Demand for Self-Medication
The major growth factor of the over the counter (OTC) drugs market is the growing demand for self-medication. The rising incidences of minor disorders promote the use of OTC drugs. It is estimated that the global prevalence rate of self-medication is 12% to 92%. People are now more aware of the type of medications to be administered depending on their condition. The increasing surfing on search engines and the growing use of social media educate people about OTC drugs. Many people suffer from diarrhea or motion sickness, necessitating them to carry first-aid kits while traveling, which consist of common medications. Rapid urbanization and increasing healthcare costs shift people’s perspective towards self-medication. Self-medication can help save scarce medical resources for minor conditions and reduce absenteeism from work.
Market Competitiveness
The major challenge of the market is the increasing market competitiveness due to numerous players entering the market. The increasing number of manufacturing enterprises adds to the competition for providing safe and affordable drugs. This significantly impacts price sensitivity, distribution, and counterfeits. The Pharmaceutical Security Institute (PSI) reported around 6,897 incidents of counterfeiting, illegal diversion, and theft of pharmaceuticals in 142 countries in 2023.
Increasing Accessibility
The future of the over the counter (OTC) drugs market is promising, driven by technological advancements, changing consumer preferences, and increasing accessibility. The advent of online pharmacies owing to the burgeoning e-commerce sector plays a vital role in increasing the accessibility of OTC medications. Digital health platforms also provide easy access to drug and disease information, helping patients to make informed decisions. Favorable government support also helps to increase the accessibility of OTC drugs. Several government organizations globally make provisions to dispense OTC drugs in convenience stores and supermarkets, other than retail pharmacies. However, these drugs are only sold in the presence of a pharmacist.
For instance,
By product type, the cough & cold products segment held a dominant presence in the over the counter (OTC) drugs market in 2024. Cough & cold products include lozenges, tablets, syrups, and ointments. These products help to relieve symptoms faster and are comparatively safer. The increasing incidences of common flu cases and growing research and development activities drive the segment’s growth. Numerous researchers and drug manufacturers disrupt the market by introducing novel drug delivery systems to cure common coughs and colds. Roll-ons and steam pods are some examples of novel drug delivery systems for headache relief. The availability of generic alternatives for common flu enhances the affordability and accessibility of OTC drugs.
By product type, the analgesics segment is anticipated to grow with the highest CAGR in the market during the studied years. Analgesics are a class of drugs to relieve minor pain or inflammation. Paracetamol, aspirin, and ibuprofen are some examples of OTC analgesics. The rising incidences of minor injuries and inflammation increase the demand for OTC analgesics. The type of analgesics administered depends on the patient’s condition and the severity of the pain. Up to 70% of the population in Western countries prefer OTC analgesics regularly for headaches, body aches, or other types of pain.
By dosage form, the tablets segment held the largest share of the over the counter (OTC) drugs market in 2024. Tablets are the most convenient and effective dosage forms that are preferred by people of all ages. The demand for tablets is increasing as they are easily available, administered, and cost-effective. They are also easy to store and handle and are patient-compliant. Tablets can assure dose accuracy and result in increased physiological activity. Since they are available as sustained release and immediate release, their duration of action can be determined. Tablets also offer commercial benefits to manufacturers and distributors as they have a longer shelf life and are resistant to environmental factors.
By dosage form, the ointments segment is expected to grow at the fastest rate in the market during the forecast period. Ointments are substances that are put on the skin to cure soreness and injury. They are used to heal wounds, burns, rashes, scrapes, or other skin problems. They are available for both pharmaceutical and cosmetic purposes. Ointments allow the incorporation of water-insoluble drugs, reduce nasolacrimal drainage, and minimization of tear dilution. They contain less water in formulations; hence, they need fewer preservatives than creams.
By route of administration, the oral segment led the global over the counter (OTC) drugs market in 2024. The oral route of administration includes liquids, capsules, and tablets. They are predominantly preferred as they are safer, cost-effective, and easy to administer to all age groups. They are non-invasive and eliminate the need for skilled professionals to administer the drugs. Tablets are available in different forms, such as buccal, sublingual, effervescent, and chewable forms, to drive the release of medications.
By route of administration, the topical segment is projected to expand rapidly in the market in the coming years. The topical route includes applying active drug substances on the skin and mucous membrane for local or systemic action. They are applied to the eyes, ears, nose, and mucous membranes. They provide better therapeutic action as they are directly applied to the target site and result in fewer side effects. They eliminate the first-pass metabolism as they are directly applied to the skin and systemic side effects.
By distribution channel, the drug stores & retail pharmacies segment registered its dominance over the global over the counter (OTC) drugs market in 2024. The increasing number of retail pharmacy stores and the presence of trained personnel fuel the segment’s growth. Pharmacists at retail stores can guide patients about dosage and time for drug administration. There are around 46,230 pharmacies and drug stores in the U.S. as of 2024. These stores offer special discounts, 24/7 facilities, and same-day home delivery services to increase the accessibility of patients.
By distribution channel, the online pharmacies segment is estimated to show the fastest growth in the market over the forecast period. The rising adoption of smartphones and advancements in telecommunication technology promote the segment’s growth. People can order medicines online from the comfort of their homes. The increasing geriatric population benefits from online pharmacies as they can order from a large range of products. They also offer special discounts and free home delivery facilities.
North America dominated the global over the counter (OTC) drugs market in 2024. The rising incidences of minor disorders and favorable regulatory policies drive the market. The Centers for Disease Control and Prevention (CDC) estimates that around 40 million flu-related illnesses were reported in the U.S. for the 2023-2024 flu season. The Food and Drug Administration (FDA) regulates the approval of OTC drugs in the U.S. The U.S. sells more than 300,000 non-prescription drugs, including 800 active ingredients in more than 80 therapeutic classes. In Canada, around 2,000 OTC drugs are approved for sale. The presence of key players such as Pfizer, GlaxoSmithKline, and Merck held the major share of the market.
Asia-Pacific is projected to host the fastest-growing market in the coming years. The increasing pediatric and geriatric population, increasing investments, and growing research and development activities boost the market. The growing healthcare expenditure and rising disposable income contribute to market growth. The burgeoning pharmaceutical sector and favorable regulatory frameworks augment the market. There are more than 6,000 OTC drugs available in China. Suitable manufacturing infrastructure encourages foreign companies to set up their manufacturing plant in Asia-Pacific countries. Countries like China and India export a major amount of OTC drugs to the world. India exported drugs and pharmaceuticals worth $27.82 billion during FY24.
Nandini Piramal, Chairperson at Piramal Pharma Ltd., commented that the company touched close to Rs. 1,000 crore in revenue from the OTC vertical in FY24 and aims to grow in double digits in the coming year. She also said that the company may look for acquisitions and is open to partnerships. However, their primary goal is to achieve scale and profitability.
By Product Type
By Dosage Form
By Route of Administration
By Distribution Channel
By Region
February 2025
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