OTC Products - China

China

The projected revenue for the OTC Products market in 2024 is estimated to reach US$74.91bn.
It is expected to demonstrate an annual growth rate (CAGR 2024-2028) of 6.19%, leading to a market volume of US$95.26bn by 2028.
China is anticipated to generate the highest revenue in global comparison, with US$74.91bn in 2024.
In terms of per person revenues, it amounts to US$52.28 in 2024, taking into account the total population figures of the country.
China's OTC product market is experiencing a surge in demand for traditional Chinese medicine, driven by a growing preference for natural remedies.

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

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Analyst Opinion

The OTC Products (Pharmacies) market in China has been experiencing significant growth in recent years.

Customer preferences: Chinese consumers have been increasingly turning to over-the-counter (OTC) products for their healthcare needs. This shift in consumer behavior can be attributed to several factors. Firstly, there is a growing awareness and emphasis on self-care and preventive healthcare among the Chinese population. Consumers are now more proactive in managing their health and are seeking accessible and convenient solutions. OTC products provide a convenient option for consumers to address common health issues without the need for a prescription or a visit to a doctor.

Trends in the market: One of the key trends in the OTC Products (Pharmacies) market in China is the rising demand for traditional Chinese medicine (TCM) products. TCM has a long history in China and is deeply ingrained in Chinese culture and healthcare practices. Many consumers are now turning to TCM products for their perceived effectiveness in treating a wide range of health conditions. This trend has led to an increase in the availability and variety of TCM products in pharmacies across the country. Another trend in the market is the growing popularity of e-commerce platforms for purchasing OTC products. Online shopping has become increasingly prevalent in China, and consumers are now accustomed to the convenience and wide selection offered by e-commerce platforms. This has led to the emergence of online pharmacies, which provide consumers with easy access to a wide range of OTC products. The convenience of online shopping, coupled with competitive pricing and discounts, has made online pharmacies a popular choice among Chinese consumers.

Local special circumstances: China's rapidly aging population is also driving the growth of the OTC Products (Pharmacies) market. As the population ages, the demand for healthcare products and services is increasing. Many elderly individuals prefer to manage their health conditions through self-care and rely on OTC products for their healthcare needs. This has created a significant market opportunity for pharmacies to cater to the specific needs of the elderly population. Furthermore, the Chinese government has been actively promoting the development of the healthcare industry, including the OTC Products (Pharmacies) market. The government has implemented policies to improve access to healthcare services and has encouraged the development of the retail pharmacy sector. These initiatives have created a favorable business environment for pharmacies, leading to increased investment and expansion in the market.

Underlying macroeconomic factors: China's strong economic growth and rising disposable incomes have also contributed to the growth of the OTC Products (Pharmacies) market. As consumers have more purchasing power, they are willing to spend on healthcare products and services. The increasing urbanization in China has also played a role in the market growth, as urban residents have better access to pharmacies and a wider range of OTC products. In conclusion, the OTC Products (Pharmacies) market in China is experiencing significant growth due to changing customer preferences, such as the emphasis on self-care and the popularity of TCM products. The rise of e-commerce platforms and the aging population are also driving the market growth. Additionally, government support and favorable macroeconomic factors have created a conducive environment for the expansion 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.