United States Over-The-Counter Drugs Market Size (2024 - 2029)

United States Over-The-Counter Drugs Market Analysis

The United States Over-The-Counter Drugs Market size is estimated at USD 42.80 billion in 2024, and is expected to reach USD 53 billion by 2029, growing at a CAGR of 4.40% during the forecast period (2024-2029).

Over-the-counter medicine, also called OTC or nonprescription medicine, is safe and effective when followed the directions on the label or as directed by healthcare professionals. The key factors driving the market's growth in the United States include the high cost of prescription drugs, which has led to a shift toward OTC drugs and increased OTC drug approvals in the United States.

• The high cost of prescription drugs (Rx), which is majorly due to the cost involved in drug development, is causing a shift toward OTC drugs in the United States. For instance, a study from the Kaiser Family Foundation published in December 2022 indicated that almost one in three US individuals does not take medication as prescribed due to the high cost of drugs. Most people across the country rely on OTC drugs and find an alternative to their prescription drugs to save money.
• Furthermore, according to data from the Assistant Secretary for Planning and Evaluation (ASPE) published in September 2022, over 1,216 drugs witnessed price hikes in 2022. The cost of some prescription drugs increased by more than 500% that year. These statistics indicate that the high cost of prescription drugs is posing a significant challenge in the United States, which is believed to boost the demand for OTC drugs in the country.
• Several new product approvals are happening in the OTC drugs market in the United States. For instance, in June 2023, the US Food and Drug Administration approved the over-the-counter sale of Futura Medical's Eroxon, a topical gel treatment for erectile dysfunction (ED). Similarly, in July 2023, Harm Reduction Therapeutics received FDA approval for its OTC RiVive (naloxone HCl nasal spray 3 mg) for the emergency treatment of opioid overdose. With such approvals in the OTC drugs sector, the market studied is believed to grow considerably in the coming years due to the widespread availability of these products.
• However, stringent regulatory policies associated with the OTC drug development and approval are expected to hamper the market's growth over the forecast period.

United States Over-The-Counter Drugs Industry Segmentation

As per the scope of this report, over-the-counter drugs are referred to as non-prescription drugs. An individual can buy these medicines without a doctor's prescription, and they are safe for consumption without the doctor’s consent.

The US OTC drugs market is segmented by product type, formulation type, and distribution channel. The market is segmented by product type into cough, cold, and flu products, analgesics, dermatology products, gastrointestinal products, vitamins, minerals, and supplements (VMS), weight loss/dietary products, ophthalmic products, sleeping aids, and other product types. The other product types include ear drops, anti-diarrheal, and oral antiseptics. By formulation type, the market is segmented into tablets, liquids, ointments, and sprays. By distribution channel, the market is segmented into hospital pharmacies, retail pharmacies, online pharmacies, and other distribution channels. The other distribution channels include nursing home pharmacies, direct selling, and other medical center pharmacies. The report offers the value in USD for the above segments.