OTC Products - Malaysia

Malaysia

In the year 2024, it is projected that the revenue in the OTC Products market in Malaysia will reach US$2,456.00m.
This market is expected to show an annual growth rate (CAGR 2024-2028) of 7.25%, resulting in a market volume of US$3,249.00m by 2028.
Compared to other countries Worldwide, it is worth noting that China will generate the highest revenue in the OTC Products market, with an estimated amount of US$74.91bn in 2024.
When considering the population figures, the per person revenue generated in Malaysia in 2024 is approximately US$70.84.
In Malaysia, the demand for OTC products is growing steadily due to increasing awareness about self-medication and convenience.

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

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Analyst Opinion

The OTC Products (Pharmacies) market in Malaysia is experiencing significant growth and development.

Customer preferences: Customers in Malaysia are increasingly turning to OTC products for their healthcare needs. This shift can be attributed to several factors. Firstly, there is a growing awareness and emphasis on self-care and preventive healthcare. Consumers are becoming more proactive in managing their health and are seeking accessible and convenient solutions. OTC products provide a convenient and affordable option for minor ailments and common health issues. Additionally, the increasing prevalence of chronic diseases such as diabetes and hypertension has led to a greater demand for OTC products that can help manage these conditions.

Trends in the market: One of the key trends in the OTC Products (Pharmacies) market in Malaysia is the rising popularity of natural and herbal remedies. Consumers are increasingly seeking products that are perceived as more natural and have fewer side effects. This trend is driven by a growing interest in alternative medicine and a desire for more holistic approaches to healthcare. As a result, pharmacies are expanding their range of natural and herbal products to cater to this demand. Another trend in the market is the increasing availability of OTC products online. E-commerce platforms and online pharmacies are gaining traction in Malaysia, providing consumers with greater convenience and accessibility. This trend has been further accelerated by the COVID-19 pandemic, which has led to an increased reliance on online shopping. Pharmacies are adapting to this shift by expanding their online presence and offering home delivery services.

Local special circumstances: One of the unique aspects of the OTC Products (Pharmacies) market in Malaysia is the strong presence of traditional medicine. Traditional Chinese medicine and Malay traditional medicine have a long history in Malaysia and continue to be widely practiced. Pharmacies in Malaysia often stock a range of traditional medicine products alongside conventional OTC products. This reflects the cultural diversity and preferences of the Malaysian population.

Underlying macroeconomic factors: Several macroeconomic factors are driving the growth of the OTC Products (Pharmacies) market in Malaysia. Firstly, Malaysia has a rapidly growing middle class with increasing disposable income. This has led to a higher demand for healthcare products and services, including OTC products. Additionally, the government's focus on improving healthcare infrastructure and accessibility has created a favorable environment for the OTC market to thrive. Furthermore, Malaysia has a rapidly aging population, which is contributing to the increased demand for OTC products. As people age, they often require more healthcare products for managing chronic conditions and maintaining overall health. The aging population is expected to continue growing in the coming years, further boosting the demand for OTC products. In conclusion, the OTC Products (Pharmacies) market in Malaysia is experiencing growth and development driven by changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The increasing popularity of natural and herbal remedies, the rise of online sales, and the presence of traditional medicine are shaping the market landscape. Additionally, factors such as a growing middle class, an aging population, and government initiatives are contributing to the market's expansion.

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.