OTC Products - Vietnam

Vietnam

Highlights

The OTC Products market in Vietnam is expected to achieve a revenue of US$1.72bn by 2024.
It is anticipated to witness an annual growth rate (CAGR 2024-2029) of 5.96%, leading to a market volume of US$2.30bn by 2029.
In comparison to other countries, China is projected to generate the highest revenue of US$74.91bn in 2024.
When considering the total population, the per person revenue in Vietnam is estimated to be US$17.30 in 2024.
The OTC Products market in Vietnam exhibits promising growth potential.
Vietnam's OTC product market is experiencing a surge in demand for traditional herbal remedies, driven by a growing interest in natural and alternative healthcare solutions.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Vietnamese consumers have shown a strong preference for OTC products, as they provide convenience and accessibility. With a growing middle class and increasing disposable income, more people are willing to spend on healthcare and wellness products. Additionally, the younger generation is becoming more health-conscious and proactive in managing their own health, leading to a higher demand for OTC products.

Trends in the market: One of the key trends in the OTC Products market in Vietnam is the increasing popularity of natural and herbal remedies. Consumers are seeking alternative treatments and are willing to try traditional remedies for common ailments. This trend is driven by a desire for more natural and holistic approaches to healthcare. Another trend is the rise of e-commerce in the OTC Products market. Online platforms provide a convenient way for consumers to purchase OTC products, especially for those living in remote areas or with limited access to physical pharmacies. The increasing penetration of smartphones and internet connectivity has further fueled the growth of e-commerce in Vietnam.

Local special circumstances: Vietnam has a large population, with a significant portion residing in rural areas. Access to healthcare services, including pharmacies, can be limited in these areas. As a result, the demand for OTC products is higher in rural areas, where people rely more on self-medication. Furthermore, the Vietnamese government has been implementing various policies to promote the use of generic drugs and OTC products. This has led to an increase in the availability and affordability of OTC products, making them more accessible to a wider population.

Underlying macroeconomic factors: Vietnam's economy has been growing steadily over the years, with a rising middle class and increasing disposable income. This has contributed to the growth of the OTC Products market, as consumers have more purchasing power to spend on healthcare and wellness products. Additionally, the aging population in Vietnam is driving the demand for OTC products. As people age, they are more likely to experience chronic health conditions and require regular medication. OTC products provide a convenient and cost-effective solution for managing these conditions. In conclusion, the OTC Products market in Vietnam is experiencing growth due to customer preferences for convenience and accessibility, the popularity of natural remedies, the rise of e-commerce, and the government's efforts to promote the use of generic drugs. These trends, along with the country's growing economy and aging population, are driving the demand for OTC products in Vietnam.

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.