OTC Products - Australia

Australia

In Australia, the OTC Products market is anticipated to achieve a revenue of US$7.79bn in 2024.
It is expected that the revenue will exhibit an annual growth rate (CAGR 2024-2028) of 5.25%, resulting in a market volume of US$9.56bn by 2028.
When compared globally, China is projected to generate the highest revenue of US$74.91bn in 2024.
In terms of per person revenues, in Australia is estimated to generate US$291.60 in 2024.
The demand for over-the-counter (OTC) products in Australia is steadily increasing due to the country's high healthcare standards and accessibility to quality healthcare products.

Key regions: Europe, Germany, Canada, Japan, South Korea

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Analyst Opinion

The OTC Products (Pharmacies) market in Australia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, and local special circumstances.

Customer preferences: Customers in Australia have shown a growing preference for self-care and convenience when it comes to managing their health. This has led to an increased demand for over-the-counter (OTC) products in pharmacies, as they provide easy access to a wide range of medications and healthcare products without the need for a prescription. Additionally, customers appreciate the personalized advice and guidance offered by pharmacists, which further enhances their experience and trust in OTC products.

Trends in the market: One notable trend in the OTC Products (Pharmacies) market in Australia is the growing popularity of natural and organic products. Consumers are becoming more conscious of the ingredients in the products they use, and are actively seeking out natural alternatives. This has led to an increase in the availability of natural OTC products in pharmacies, catering to the evolving preferences of customers. Another trend is the rising demand for vitamins, supplements, and other wellness products. Australians are increasingly focused on maintaining their overall health and wellbeing, and are turning to OTC products to support their goals. Pharmacies have responded by expanding their range of wellness products, offering customers a one-stop shop for their healthcare needs.

Local special circumstances: Australia's aging population is a significant factor driving the growth of the OTC Products (Pharmacies) market. As the population ages, there is a higher demand for medications and healthcare products to manage age-related conditions. Pharmacies play a crucial role in providing accessible healthcare solutions to this demographic, contributing to the overall growth of the market. Additionally, the Australian government has implemented policies to promote the use of OTC products for certain medical conditions. This has increased the availability and affordability of OTC medications, making them more accessible to a wider range of customers. These policies have also encouraged pharmacies to expand their product offerings, further driving the growth of the market.

Underlying macroeconomic factors: Australia's strong economy and high disposable income levels have contributed to the growth of the OTC Products (Pharmacies) market. With a stable economy and a financially secure population, Australians are more willing to spend on healthcare products and services. This has created a favorable environment for the expansion of the OTC market, as customers have the means to purchase these products. Furthermore, advancements in technology and e-commerce have made it easier for customers to access OTC products. Online pharmacies and home delivery services have gained popularity, providing customers with convenience and a wider range of product options. This has further fueled the growth of the OTC market in Australia. In conclusion, the OTC Products (Pharmacies) market in Australia is growing due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. As customers prioritize self-care and convenience, pharmacies have expanded their product offerings to meet the demand for natural and wellness products. Australia's aging population and government policies have also contributed to the market's growth, while a strong economy and advancements in technology have provided a favorable environment for the expansion of the OTC market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on offline and online spending by consumers, including VAT. Not included are B2B and B2G sales, or other pharmaceutical sales through hospitals or retail stores such as supermarkets.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market market. As a basis for evaluating markets, we use industry associations, third-party studies and reports and survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as healthcare expenditure per country, consumer healthcare spending, GDP and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, forecasts are based on historical developments, current trends, and key market indicators, using advanced statistical methods. For forecasting digital trends such as the online-pharmacy sales share we use exponential trend smoothing and the s-curve method. The main drivers are healthcare expenditure per country and consumer healthcare spending.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. GCS data is reweighted for representativeness.