OTC Products - Canada

Canada

The OTC Products market in Canada is expected to witness a significant rise in revenue, with projections indicating that it will reach US$11.74bn by the year 2024.
This growth is predicted to continue at an annual rate of 5.55% from 2024 to 2028, resulting in a market volume of US$14.57bn by the end of the forecasted period.
In a global context, it is worth noting that China is expected to generate the highest revenue in the OTC Products market, reaching US$74.91bn in 2024.
When considering the per person revenues in Canada, an average of US$300.30 is generated per individual in 2024.
This figure provides insight into the economic impact and spending patterns related to OTC Products market within the country.
The demand for OTC products in Canada is steadily increasing due to the growing health-conscious population and easy accessibility.

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

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Analyst Opinion

The OTC Products (Pharmacies) market in Canada has been experiencing steady growth in recent years, driven by changing consumer preferences and increased demand for self-care options.

Customer preferences: Consumers in Canada are increasingly seeking convenient and accessible healthcare solutions, which has led to a rise in the popularity of over-the-counter (OTC) products. Many Canadians prefer to manage minor health issues on their own, rather than making a trip to the doctor's office. This preference for self-care is supported by a wide range of OTC products available in pharmacies, including pain relievers, cough and cold remedies, and skincare products.

Trends in the market: One notable trend in the Canadian OTC market is the growing demand for natural and organic products. Consumers are becoming more conscious of the ingredients in the products they use and are seeking alternatives that are perceived as more natural and environmentally friendly. As a result, pharmacies in Canada are expanding their offerings of natural and organic OTC products to cater to this demand. Another trend in the market is the increasing prevalence of private label OTC products. Pharmacies are developing their own brands of OTC products, which are often priced lower than national brands. This trend is driven by cost-conscious consumers who are looking for affordable options without compromising on quality. Private label OTC products also allow pharmacies to differentiate themselves from competitors and build customer loyalty.

Local special circumstances: One unique aspect of the Canadian OTC market is the regulation of certain OTC medications. In Canada, some medications that are available over-the-counter in other countries require a prescription. This can limit the availability of certain OTC products and create barriers for consumers who may prefer to purchase them without a prescription. However, this regulation also ensures that consumers have access to safe and effective medications, as they are subject to strict quality control standards.

Underlying macroeconomic factors: The growth of the OTC Products (Pharmacies) market in Canada is also influenced by broader macroeconomic factors. The country has a strong healthcare system and a high standard of living, which allows consumers to afford OTC products. Additionally, Canada has an aging population, which is driving demand for OTC products that cater to the specific needs of older individuals, such as joint pain relief and vitamins for bone health. In conclusion, the OTC Products (Pharmacies) market in Canada is developing due to changing consumer preferences, including a preference for self-care and natural products. Pharmacies are also responding to cost-conscious consumers by offering private label OTC products. The regulation of certain OTC medications and the underlying macroeconomic factors in Canada also contribute to the growth of the 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.