OTC Products - Nigeria

Nigeria

In Nigeria, the revenue in the OTC Products market is forecasted to reach US$12,000.00m in 2024.
It is expected to demonstrate an annual growth rate (CAGR 2024-2028) of 6.33%, resulting in a market volume of US$15,340.00m by 2028.
When compared globally, China is projected to generate the highest revenue of US$74.91bn in 2024.
In terms of per capita figures, in Nigeria, each person is estimated to generate revenues of US$52.38 in 2024.
The demand for OTC products in Nigeria is rising due to increasing health awareness and limited access to healthcare facilities.

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

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Analyst Opinion

The OTC Products (Pharmacies) market in Nigeria has seen significant growth in recent years.

Customer preferences: Customers in Nigeria have shown a strong preference for OTC products due to several factors. Firstly, the convenience of purchasing these products without a prescription appeals to busy consumers who may not have the time or means to visit a doctor. Additionally, the affordability of OTC products compared to prescription medications makes them a more accessible option for many Nigerians. Lastly, the increasing awareness and education about self-care and preventive healthcare have contributed to the growing demand for OTC products.

Trends in the market: One of the key trends in the OTC Products (Pharmacies) market in Nigeria is the increasing availability and variety of products. Pharmacies are expanding their product offerings to meet the diverse needs of consumers, including over-the-counter medications, vitamins and supplements, personal care products, and health monitoring devices. This trend is driven by the rising demand for these products and the desire of pharmacies to capture a larger share of the market. Another trend in the market is the growing popularity of online pharmacies. With the increasing penetration of internet access and smartphones in Nigeria, more consumers are turning to online platforms to purchase OTC products. Online pharmacies offer convenience, competitive pricing, and a wide range of products, attracting a large customer base. This trend is expected to continue as e-commerce continues to grow in Nigeria.

Local special circumstances: Nigeria's large population and rapid urbanization have contributed to the growth of the OTC Products (Pharmacies) market. As more people move to urban areas, the demand for convenient healthcare options, such as pharmacies, has increased. Additionally, the high prevalence of certain health conditions in Nigeria, such as malaria and respiratory infections, has created a steady demand for OTC products to manage these conditions.

Underlying macroeconomic factors: Several macroeconomic factors have played a role in the development of the OTC Products (Pharmacies) market in Nigeria. The country's growing middle class, increasing disposable income, and improving healthcare infrastructure have all contributed to the rising demand for OTC products. Additionally, government policies aimed at promoting self-care and reducing the burden on the healthcare system have created a favorable environment for the growth of the market. In conclusion, the OTC Products (Pharmacies) market in Nigeria is experiencing significant growth due to customer preferences for convenience and affordability, the increasing availability of products, the rise of online pharmacies, local special circumstances such as population growth and high prevalence of certain health conditions, and underlying macroeconomic factors such as a growing middle class and government policies. This market is expected to continue to expand in the coming years as more Nigerians embrace self-care and preventive healthcare practices.

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.