OTC Products - Ethiopia

Ethiopia

Ethiopia is expected to witness tremendous growth in the OTC Products market.
According to projections, the revenue in this sector is set to reach US$334.50m in 2024.
This represents a significant increase in the market size.
Furthermore, the market is anticipated to experience an impressive annual growth rate (CAGR 2024-2029) of -4.28%.
As a result, the market volume is expected to reach US$268.80m by 2029.
When compared globally, it is worth noting that China will generate the highest revenue in the OTC Products market.
In 2024, China is projected to generate a staggering amount of US$74.91bn.
This showcases the immense scale of the market China.
To provide a better understanding of the market's impact, it is crucial to consider the revenue generated per person.
In 2024, the per person revenue in Ethiopia is estimated to be US$2.58.
This figure demonstrates the economic significance of the OTC Products market and its contribution to the country's overall economy.
Due to the limited access to formal healthcare and regulatory challenges, the OTC products market in Ethiopia is characterized by a high demand for traditional remedies and herbal medicines.

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

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Analyst Opinion

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

Customer preferences: Customers in Ethiopia are increasingly turning to over-the-counter (OTC) products for their healthcare needs. This is due to several factors, including the convenience and accessibility of OTC products, as well as the rising awareness of self-care and preventive healthcare. Consumers are becoming more proactive in managing their health and are seeking out OTC products that can help them treat minor ailments and improve their overall well-being.

Trends in the market: One of the key trends in the OTC Products market in Ethiopia is the growing demand for traditional and herbal remedies. Traditional medicine has a long history in Ethiopia and is deeply ingrained in the culture. Many consumers prefer natural and herbal products, believing them to be safer and more effective than synthetic alternatives. As a result, there has been a surge in the availability and popularity of traditional remedies in pharmacies across the country. Another trend in the market is the increasing availability of OTC products in rural areas. Historically, access to healthcare services and products has been limited in rural Ethiopia. However, with the expansion of the healthcare infrastructure and the establishment of more pharmacies in these areas, rural consumers now have greater access to OTC products. This has contributed to the overall growth of the market.

Local special circumstances: Ethiopia has a large population, with a significant portion residing in rural areas. This poses unique challenges for the OTC Products market. Distribution and logistics can be difficult, particularly in remote regions with limited transportation infrastructure. However, the government and private sector are working together to address these challenges and improve the availability of OTC products across the country.

Underlying macroeconomic factors: Ethiopia has been experiencing steady economic growth in recent years, which has contributed to the expansion of the OTC Products market. As the economy grows, consumers have more disposable income to spend on healthcare products, including OTC medications. Additionally, the government has been investing in the healthcare sector, which has led to improvements in healthcare infrastructure and services. These factors have created a conducive environment for the growth of the OTC Products market in Ethiopia. In conclusion, the OTC Products market in Ethiopia is experiencing growth due to changing customer preferences, including the demand for traditional and herbal remedies, and the increasing availability of OTC products in rural areas. Despite challenges in distribution and logistics, the market is expected to continue expanding as the economy grows and the government invests in the healthcare sector.

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.