OTC Products - South Korea

South Korea

In South Korea, the revenue in the OTC Products market is forecasted to reach US$7.80bn by 2024.
It is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 3.65%, resulting in a market volume of US$9.33bn by 2029.
When compared globally, China is projected to generate the highest revenue of US$74.91bn in 2024.
In terms of per person revenues, in South Korea is estimated to generate US$150.70 in 2024.
South Korea's OTC products market is thriving due to the country's strong emphasis on skincare and beauty, with innovative products driving consumer demand.

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

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Analyst Opinion

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

Customer preferences: South Korean consumers have shown a growing preference for self-medication and over-the-counter (OTC) products. This can be attributed to several factors, including the increasing awareness and knowledge about health and wellness, as well as the convenience and accessibility of OTC products. Consumers are increasingly seeking products that can help them manage common ailments and minor health issues without the need for a doctor's prescription.

Trends in the market: One of the key trends in the OTC Products market in South Korea is the rising demand for natural and herbal remedies. Consumers are becoming more conscious about the ingredients in the products they use and are opting for natural alternatives to traditional pharmaceuticals. This trend is driven by a desire for safer and more sustainable options, as well as a growing interest in traditional medicine practices. Another trend in the market is the increasing popularity of online pharmacies. South Korean consumers are embracing e-commerce platforms for their convenience and the wider range of products available. Online pharmacies offer a more discreet and convenient way to purchase OTC products, especially for those who may be hesitant to buy them in person. The COVID-19 pandemic has further accelerated this trend, as consumers have turned to online shopping to reduce their risk of exposure.

Local special circumstances: South Korea has a highly developed healthcare system, with a strong emphasis on preventive care and public health. The government has implemented various policies and programs to promote self-medication and the use of OTC products. For example, the Ministry of Food and Drug Safety has implemented a system that allows certain prescription drugs to be sold over-the-counter, making them more accessible to consumers.

Underlying macroeconomic factors: South Korea has a high level of disposable income and a strong consumer culture. The country has a well-developed retail sector, with a wide range of pharmacies and drugstores offering OTC products. The aging population is also a contributing factor to the growth of the OTC Products market, as older consumers often require more frequent access to healthcare products. In conclusion, the OTC Products market in South Korea is experiencing growth due to the increasing preference for self-medication, the rising demand for natural remedies, the popularity of online pharmacies, and the government's support for OTC products. These trends are driven by factors such as consumer awareness, convenience, and the country's strong healthcare system.

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.