Market Overview

The OTC drugs market size (total of nonprescription drugs and designated quasi-pharmaceutical products) in 2021 grew by 0.1% to have attained 838,000 million yen, based on the shipment value at manufacturers. The details were: OTC drugs grew by 0.4% to 699,000 million yen, designated quasi drugs declined by 1.4% to 139,000 million yen. Though managed to maintain positive growth, the overall market growth remained low.

Since 2020, there have been differences in drug demands by efficacy due to the impact of spread of new coronavirus infections: While the sales of eye drops, having occupied a high proportion of inbound demand (foreign tourists visiting Japan), became sluggish after entry restrictions, antipyretic analgesics sold well for being taken after vaccination.

Noteworthy Topics

For Market Recovery, It is Imperative to Vitalize the Domestic Market by Pressing Ahead with Self Medication by Use of OTC Drugs

Although the OTC drugs market has been on a slight uptrend, when limiting to domestic demand, it can hardly be said as completely gotten out of stagnant conditions. As inbound tourism demand has been severely affected by entry restrictions in the pandemic since 2020. With the future outlook uncertain, the domestic market requires to be fully revitalized, in order for the market to continue growing.

To this end, the followings can be the solutions:, 1) creating new market by releasing Rx-to-OTC switches (switching of prescribed drugs to OTC drugs) into new areas, or by releasing Rx-to-OTC switches with new efficacies, 2) Generating new demand by releasing new products with unprecedented angles, 3) Finding out potential demand from existing drug effects by appealing from different points of views, 4) Creating a system for providing information and consultation at retailers, 5) Expanding new opportunities for drug sales in association with increasing number of new entries from different retailing business.

Through these attempts of new product promotions and enhancement of providing information, it is necessary to improve awareness of self-medication and to encourage people to act, such as making a habit of managing one’s own health.

Future Outlook

The OTC drugs market is projected to remain 839,000 million yen in 2022, a rise by 0.1% on a YoY basis. The details are: OTC drugs expected to increase by 0.4% to 702,000 million yen, while designated quasi drugs to decline by 1.4% to 137,000 million yen.

In 2022, the market is expected to grow from favorable sales of high-value added eye drops, expanding sales of antipyretic analgesics due to those products with higher analgesic effect, in addition to the attempts of new product releases by regular renovation of each efficacy. Although inbound tourism demand has still been on a decline from the COVID-19 crisis, the changes in the situation is being in focus, as there is a sign of lifting entry restrictions. On the other hand, health drinks or mini drinks of designated quasi-pharmaceutical products, gastrointestinal drugs, and medicines for athlete's foot continue showing market shrinkage. Therefore, while OTC drugs market keeps on growing, the growth rate is likely to level off or on a slight uptrend.

Research Outline