OTC Products - Southeast Asia

Southeast Asia

Highlights

In 2024, the projected revenue in the OTC Products market in Southeast Asia is estimated to reach US$30.79bn.
It is expected to experience an annual growth rate of 4.32% from 2024 to 2029, resulting in a market volume of US$38.04bn by 2029.
When compared globally, it is noteworthy that the majority of the revenue will be generated China, with an estimated revenue of US$74.91bn in 2024.
In terms of per capita revenue, in Southeast Asia is projected to generate US$44.45 per person in 2024.
This indicates the revenue generated by the OTC Products market in relation to the total population.
In Southeast Asia, the popularity of OTC herbal remedies is on the rise, with countries like Indonesia and Malaysia leading the trend.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Customers in Southeast Asia are increasingly turning to over-the-counter (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 among consumers. They are taking a proactive approach to managing their health and are seeking accessible and affordable solutions. OTC products provide a convenient and cost-effective option for common health issues such as cold and flu, pain relief, and digestive problems. Additionally, the rising middle-class population in Southeast Asia has led to increased disposable income, enabling consumers to afford OTC products.

Trends in the market: One of the key trends in the OTC Products (Pharmacies) market in Southeast Asia is the increasing demand for natural and herbal remedies. Consumers are becoming more conscious of the ingredients and potential side effects of pharmaceutical drugs, leading them to seek alternative options. This trend is particularly prevalent in countries like Indonesia and Thailand, where traditional medicine has a strong cultural influence. As a result, pharmacies are expanding their product offerings to include a wide range of natural and herbal remedies to cater to this growing demand. Another trend in the market is the rise of e-commerce in the healthcare sector. The convenience and accessibility of online shopping have made it an attractive option for consumers to purchase OTC products. Online pharmacies are gaining popularity in Southeast Asia, offering a wide range of OTC products at competitive prices and delivering them directly to customers' doorsteps. This trend is driven by the increasing internet penetration and smartphone usage in the region, making it easier for consumers to shop online.

Local special circumstances: Each country in Southeast Asia has its own unique set of circumstances that influence the OTC Products (Pharmacies) market. For example, in Singapore, the government has implemented strict regulations on the sale and distribution of OTC products to ensure safety and quality. This has led to a high level of trust among consumers in the products available in pharmacies. In contrast, countries like Indonesia and the Philippines have a large informal sector of small, independent pharmacies known as "mom-and-pop" stores. These stores play a significant role in providing OTC products to consumers, especially in rural areas where access to healthcare facilities may be limited. The presence of these small pharmacies creates a competitive landscape in the market, with consumers having a wide range of options to choose from.

Underlying macroeconomic factors: The OTC Products (Pharmacies) market in Southeast Asia is also influenced by underlying macroeconomic factors. The region has been experiencing steady economic growth, leading to an increase in disposable income and consumer spending. This has contributed to the growing demand for OTC products as consumers have more purchasing power. Furthermore, the aging population in Southeast Asia is driving the demand for OTC products. As the population ages, there is a higher prevalence of chronic diseases and age-related health issues. OTC products provide a convenient and affordable solution for managing these conditions, leading to increased demand in the market. In conclusion, the OTC Products (Pharmacies) market in Southeast Asia is developing rapidly due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The increasing demand for OTC products, particularly natural and herbal remedies, along with the rise of e-commerce, are shaping the market in the region. Each country in Southeast Asia has its own unique circumstances that influence the market, and underlying macroeconomic factors such as economic growth and aging population are driving the overall growth of the market.

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.