Consumer Healthcare Market

Market Overview

The global consumer healthcare market size was valued at USD 280.1 billion in 2022. It is projected to reach USD 574.4 billion by 2031, growing with a CAGR of 7.51% during the forecast period (2023–2031). One prominent trend observed in the consumer healthcare industry is consumers' rapid adoption of Internet resources.

Consumer healthcare encompasses a range of wellness, oral health, nutrition, and skin health items. Its core components are over-the-counter (OTC) drugs, including medications and vitamin and mineral supplements, which are directly available to consumers without needing a prescription from a healthcare professional. Certain products such as toothpaste, mouthwash, eye drops, wart removers, first aid creams, ointments containing antibiotics, and dandruff shampoos are classified as over-the-counter (OTC) medications. Only a limited number of nations have established regulations by which over-the-counter (OTC) drugs are subject to scrutiny by a regulatory agency, thereby ensuring that these medications consist of safe and dependable substances for use without a physician's supervision.

Over-the-counter (OTC) medications are often classified based on their active pharmaceutical ingredient (API) rather than their finished formulations, in contrast to dietary supplements, which consist of one or more constituents and are intended to augment an individual's diet but are not classified as food. Several instances of dietary supplements include vitamins, minerals, carbohydrates, vital fats, and proteins. These supplements are derived from natural and synthetic constituents, which contribute to promoting overall health and well-being. Therefore, these supplements have the potential to be marketed and sold as standalone products, as well as in combination with other nutrient elements.

Market Dynamics

Market Drivers

Awareness about Lifestyle Diseases and Self-Medication

The accelerated use of online resources in the consumer healthcare market is a key trend in the consumer healthcare industry. The ease of availability of information related to healthcare is progressing the market growth, boosting the popularity of self-medication with over-the-counter (OTC) medicines. Moreover, manufacturers and retailers of consumer healthcare products are shifting to online platforms for better visibility and reach among customers and leverage financial growth.

Additionally, online resources and self-medication increased further during the COVID-19 pandemic when several governments imposed lockdowns, ultimately leading people to stock OTC medications such as paracetamol and ibuprofen for COVID symptom relief. This propelled the demand for sales of consumer healthcare products and further paved the path for sales of healthcare products on online platforms.

In the scenario of a healthy lifestyle, OTC medicines are accepted to maintain health. They are taken as supplements with more nature-based and exercise-heavy living that includes regular cardio, strength-building outdoor exercises, sports, etc. These factors are responsible for the global consumer healthcare market growth and are anticipated to positively propel the market growth during the forecast period.

Market Restraint

Widespread Presence of Counterfeit Pharmaceuticals

Counterfeit medications often misrepresent their origin, legitimacy, or efficacy. They may have insufficient or no amount of active ingredients. They are often processed improperly within the body. Moreover, these medications have compounds not listed on the label or packaged and labeled incorrectly. Counterfeit pharmaceuticals pose a major threat to public health and can cause a treatment regimen or even death. For instance, Mexico is a major market for counterfeit drugs, valued at an estimated average of USD 650 million annually. They account for about 10% of the total drug sales in the country. Therefore, the sales of counterfeit consumer healthcare may hamper the market development over the forecast period.

Market Opportunities

Rising Demand for E-Commerce Platforms

The availability of consumer healthcare products on online platforms or e-commerce sites offers massive market opportunities. Consumer healthcare firms are experiencing new digital opportunities throughout their value chains, including the expansion of e-commerce platforms. These opportunities have created additional avenues for engaging new customer groups and strengthening existing ones. Multiple supplementary items have seen increased purchasing rates across e-commerce channels as digital medical and health website traffic and online orders have increased dramatically.

Additionally, major pharmacy stores have already introduced omnichannel retailing initiatives, integrating their physical and digital sales channels to provide consumers with additional options. The advantages of shopping on these platforms include doorstep delivery, a wider product selection, potentially reduced costs due to fewer overheads than physical stores, and freedom from pharmacy store pressure. Therefore, booming e-commerce businesses are observed to offer opportunities for the consumer healthcare market to grow.

Regional Analysis

Based on regions, the global consumer healthcare market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global consumer healthcare market shareholder and is expected to expand substantially over the forecast period. The market's growth is attributed to the region's increasing awareness of dietary supplements, nutrition, and wellness products. Moreover, multiple healthcare professionals and associated agencies have recognized the importance of the consumption of supplementary products. This element supports the market's expansion in North America. The overall presence of a strong regulatory framework for the research and development of consumer healthcare products has supplemented the market's growth in North America.

In the US, producers and sellers of dietary supplements and ingredients are subject to several stringent regulations; this encourages the dissemination of dependable goods throughout the nation while building consumer confidence. The United States-based Consumer Healthcare Products Association stated that in May 2023, the US Food and Drug Administration approved the over-the-counter nasal spray Narcan. The Association applauded the approval by the FDA for the product to be available for the public without any prescription, which was previously available on only a prescription basis.

Asia-Pacific is expected to expand substantially over the forecast period. The rising population, growing health issues, and rising awareness about health promote market growth in the region. Moreover, the presence of multiple potential players to invest in research and development of consumer healthcare products will supplement the market's growth. Asia-Pacific, especially India, has been home to multiple herbal and organic products since ancient times. The availability of ingredients for herbal healthcare products and the potential for research and development are attracting major investors, local and international, in the market.

The booming e-commerce industry in the region promotes the distribution of consumer healthcare products in Asia-Pacific, which is observed to act as a major driver for the market's expansion in the upcoming years. The presence of a geriatric population with multiple health conditions, especially deficiencies, has forced healthcare professionals to consider consumer healthcare products as a supplementary solution for an aging population. This element contributes to the market's growth.

Segmental Analysis

The global consumer healthcare market is bifurcated into product type and distribution channels.

Based on the product type, the global consumer healthcare market is divided into over-the-counter (OTC) pharmaceuticals, personal care products, and dietary supplements.

The OTC medications segment is anticipated to hold its dominance and is expected to expand significantly over the forecast period. The OTC pharmaceutical segment dominated the market with the highest market share in 2022. The increasing tendency of self-medication in the population will grow the segment. OTC refers to over-the-counter medicines, or it is also referred to as nonprescription medicines. The administration of these medications typically occurs in the absence of a prescription, rendering it a safe practice. However, it is imperative to adhere to the instructions provided by healthcare professionals and those outlined in the product packaging. The increasing use of OTC drugs by the consumer due to easy availability and rising use of self-medication driving the segment's growth.

Based on distribution channels, the global consumer healthcare market is bifurcated into online and offline channels.

The offline segment dominates the global market and is predicted to expand substantially over the forecast period. The ease of availability of healthcare products at pharmacies or stores drives the segment's growth. As the traditional type in the healthcare industry, the offline healthcare segment has supported the segment to expand. Moreover, offline pharmacies and stores have achieved consumer trust, which is the major factor behind the segment's dominance. The facilities offered by offline distribution channels, such as professional advice, convenience, etc., give them the upper hand regarding market penetration.

The online segment is predicted to grow notably over the forecast period due to the rising availability of various online platforms for pharmaceutical and other healthcare products globally, especially in urban areas, which are predicted to drive the segment's growth. The online platforms offering healthcare products and services aggregate the information about the product, schedule an appointment for telemedicine advice, and deliver products to the consumers. The overall growth of consumer healthcare will be attributable to the growth of the e-commerce industry, which is poised to offer multiple opportunities.

Recent Developments

• August 2023- Amazon.com, Inc. debuted a revolutionary nationwide online health clinic with the long-term goal to make all of its services accessible through the mobile app or website of Amazon. The facility was launched across 50 states of the United States and connects telemedicine partners with users.
• February 2022- GlaxoSmithKline plc (GSK) announced an independent Consumer Healthcare company called Haleon, which is proposed to be a new world leader in consumer healthcare with a compelling offer to combine deep human knowledge with trusted science to make daily health better for people.
• February 2022-Ipsen engaged in a divestment agreement with Mayoly Spindler, a French pharmaceutical company. The company sold its global consumer healthcare portfolio for approximately USD 398 million.
• January 2022- GSK a global player in the global consumer healthcare market, strategized to sell its consumer health unit to Unilever and Pfizer as a consumer health joint venture. Unilever decided not to increase its bid for the GSK-Pfizer consumer health joint venture above 50 billion pounds, which approximates to USD 68 billion.