OTC Products - Africa

Africa

In Africa, the revenue in the OTC Products market is estimated to reach US$30.80bn by 2024.
It is expected to exhibit an annual growth rate (CAGR 2024-2029) of 5.32%, leading to a market volume of US$39.91bn by 2029.
In comparison to the global market, China is projected to generate the highest revenue of US$74.91bn in 2024.
When considering the total population, per person revenues of US$23.69 are generated in 2024.
In Africa, the demand for OTC products is growing rapidly, with South Africa leading the market with a wide range of accessible and affordable options for consumers.

Key regions: Europe, Australia, United Kingdom, Germany, South Korea

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Analyst Opinion

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

Customer preferences: Customers in Africa are increasingly turning to over-the-counter (OTC) products for their healthcare needs. This can be attributed to several factors, including the convenience and accessibility of these products. OTC products are readily available in pharmacies and do not require a prescription, making them easily accessible to consumers. Additionally, the affordability of these products compared to prescription medications is another driving factor for customer preference.

Trends in the market: One of the key trends in the OTC Products (Pharmacies) market in Africa is the increasing demand for preventive healthcare products. Customers are becoming more proactive in taking care of their health and are seeking OTC products that can help them prevent illnesses and maintain overall well-being. This trend is particularly evident in the growing sales of vitamins, supplements, and other wellness products. Another trend in the market is the rising popularity of natural and herbal OTC products. Customers in Africa have a long-standing tradition of using traditional herbal remedies for various ailments. This cultural preference for natural remedies has translated into a growing demand for herbal OTC products. Manufacturers and retailers are capitalizing on this trend by expanding their product offerings in this category.

Local special circumstances: Africa is a diverse continent with varying healthcare systems and infrastructure across different countries. In some regions, access to healthcare facilities and medical professionals may be limited, making OTC products an essential part of healthcare provision. Additionally, there is a lack of awareness and education about certain health conditions, leading to self-medication with OTC products. These local special circumstances contribute to the growth of the OTC Products (Pharmacies) market in Africa.

Underlying macroeconomic factors: The economic growth and rising middle class in Africa have also contributed to the development of the OTC Products (Pharmacies) market. As disposable incomes increase, customers have more purchasing power to spend on healthcare products. This has created a favorable market environment for OTC products, as customers are willing to invest in their health and well-being. Furthermore, the increasing urbanization and changing lifestyles in Africa have resulted in a higher prevalence of lifestyle-related diseases such as diabetes, hypertension, and obesity. This has led to a greater demand for OTC products that can help manage these conditions. The market for OTC medications for chronic diseases is expected to continue growing in the coming years. In conclusion, the OTC Products (Pharmacies) market in Africa is experiencing significant growth due to customer preferences for convenience, affordability, preventive healthcare, and natural remedies. Local special circumstances such as limited access to healthcare facilities and lack of awareness also contribute to the market's development. The underlying macroeconomic factors of economic growth, rising middle class, and changing lifestyles further drive 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.