The North America OTC Health Products Market size is expected to reach USD 106.6 billion by 2030, expanding at a CAGR of 6.04% during the forecast period, according to a new report by Grand View Research, Inc. Rising consumer awareness and increasing consumer willingness to spend on nutritional supplements, the increasing prevalence of lifestyle diseases including obesity & diabetes, rise in disposable income, and an increase in the number of distribution channels for OTC products are some of the key factors driving growth. Consumers are increasingly realizing the benefits of nutritional supplements, which help them sustain a healthy lifestyle, thereby positively impacting the market growth. According to the National Institute of Health, Americans spend around USD 2.1 billion annually on weight-loss dietary supplements, usually in the form of pills.
The emergence of e-commerce has led to increased accessibility to dietary and nutritional supplements. Apart from the online channels, companies such as General Nutrition Centers, Inc.; Walmart; and Vitamin Shoppe are some of the major retail outlets. Thus, the easy availability of these products will provide growth opportunities to key players in this space. Moreover, shifting consumer preference to CBD due to its healing properties and limited to no psychoactive effects is expected to drive the growth potential for CBD-infused products. According to Gallup, Inc. report of 2019, approximately 14% of individuals in the U.S. have used some or the other form of CBD-infused products. About 58% of adults use it for pain-related conditions and around 42% for mental health-related conditions.
The COVID-19 pandemic resulted in a surge in consumer preference for immunity-boosting supplements. Segments such as sports nutrition, and women’s & men’s health saw a negative impact due to lockdowns imposed by governments to curb the pandemic. The effect of COVID-19 declined post the third quarter of 2020, which helped the market regain traction.
The market is fragmented with the presence of a large number of companies, intensifying the overall competitive rivalry. Companies are undertaking multiple partnerships and mergers & acquisitions to increase their portfolio & expand their footprint across the country. In addition, companies are focusing on product differentiation and bundling strategies to capture a greater market share. For instance, in March 2022, CV Sciences, Inc. launched PlusCBD Relief Softgels. The company claims that it can deliver seven times better Cannabidiol Acid (CBDA) and Cannabidiol (CBD) than its raw formula. This product has clinical significance in the treatment of inflammatory responses.
Related Press Release@ North America OTC Health Products Market Report
North America OTC Health Products Market Report Highlights
- The dietary supplements and weight loss products segment accounted for 35.07% of the share in 2021. This is attributed to an increase in consumer awareness about the benefits of a healthy diet, growing self-health consciousness, and a rise in the prevalence of obesity
- The sports formulation segment accounted for the largest share of 20.49% in 2021 due to rising awareness about fitness and high commercial availability of sports nutrition
- Adults segment is projected to witness the fastest growth during the forecast period owing to the availability of a wide variety of OTC products for the adult demographic
- Hypermarkets, supermarkets, and convenience stores dominated the market in 2021, owing to the better feasibility of buying from such places and an increase in the number of strategic initiatives like schemes such as loyalty programs
- The capsules & tablets segment dominated the market in 2021. This can be attributed to the wide availability of products in capsule & tablet form in the market, the rise in innovation to enhance capsules & tablets delivery forms, and higher shelf-life
- The U.S. dominated the market in terms of revenue, mainly due to the presence of key players, an increase in the prevalence of chronic diseases & obesity, and a rapidly growing geriatric population