OTC Products - Kenya

Kenya

The OTC Products market in Kenya is expected to witness significant growth in the coming years.
According to projections, the revenue in this market is estimated to reach Ksh US$994.50m by 2024.
This growth is anticipated to continue with an annual growth rate (CAGR 2024-2028) of 5.05%, resulting in a market volume of Ksh US$1,211.00m by 2028.
When compared globally, it is worth noting that China is expected to generate the highest revenue in the OTC Products market, reaching a staggering amount of Ksh US$74.91bn in 2024.
This indicates the immense potential and significance of this market in the global context.
In terms of per person revenues, each individual in Kenya is estimated to generate Ksh US$17.69 in 2024.
This figure provides an insight into the economic impact of the OTC Products market on the population of Kenya.
Kenya's OTC products market is experiencing significant growth, driven by increased consumer awareness and demand for self-medication options.

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

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Analyst Opinion

The OTC Products (Pharmacies) market in Kenya has seen significant growth and development in recent years. With a growing population and increasing awareness about healthcare, the demand for over-the-counter (OTC) products has been on the rise. Customer preferences in the OTC Products (Pharmacies) market in Kenya have been influenced by several factors. Firstly, there is a growing preference for self-medication among consumers. This is driven by the convenience and accessibility of OTC products, which can be easily purchased without a prescription. Additionally, consumers are becoming more health-conscious and are seeking preventive measures to maintain their well-being. OTC products, such as vitamins and dietary supplements, are popular choices among Kenyan consumers looking to improve their overall health. Trends in the market indicate a shift towards natural and herbal remedies. Kenyan consumers are increasingly opting for OTC products that are derived from natural ingredients and are perceived to have fewer side effects. This trend is in line with the global shift towards natural and organic products, driven by a growing awareness of the potential harmful effects of synthetic chemicals. Local special circumstances in Kenya also play a role in the development of the OTC Products (Pharmacies) market. The country has a well-established pharmaceutical industry, with a number of local manufacturers producing a wide range of OTC products. This has led to increased availability and affordability of these products, making them accessible to a larger segment of the population. Additionally, the government has implemented policies to promote the use of generic drugs, further driving the growth of the OTC market. Underlying macroeconomic factors have also contributed to the development of the OTC Products (Pharmacies) market in Kenya. The country has experienced steady economic growth in recent years, leading to an increase in disposable income among consumers. This has resulted in higher spending power and a greater willingness to invest in healthcare products. Additionally, the government has been investing in healthcare infrastructure and promoting health awareness campaigns, further driving the demand for OTC products. In conclusion, the OTC Products (Pharmacies) market in Kenya is developing due to customer preferences for self-medication, a shift towards natural and herbal remedies, local special circumstances such as a well-established pharmaceutical industry, and underlying macroeconomic factors such as economic growth and government initiatives. These factors are expected to continue driving the growth of the OTC market in Kenya in the coming years.

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.