U.S. Over the Counter (OTC) Drugs Market - Databook 2025 to 2034

The U.S. over the counter (OTC) drugs market size surpassed USD 23,837 million in 2024 and is predicted to reach around USD 44,170 million by 2034, registering a CAGR of 6.36% from 2025 to 2034.

Highlights of the U.S. Over the Counter (OTC) Drugs Market

• By product, the cold & cough remedies segment held a dominant presence in the market in 2024.
• By product, the analgesics segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
• By distribution channel, the drug stores and retail pharmacies segment accounted for a considerable share of the market in 2024.
• By distribution channel, the online pharmacies segment is projected to experience the highest growth rate in the market between 2025 and 2034.

Industry Valuation and Growth Rate Projection

Over the counter (OTC) drugs are also known as non-prescription medicines. These refer to any medicine that a consumer can purchase without a proper prescription from a healthcare professional. These are usually drugs that cure the common cold, cough, pain, and fever in a patient. These drugs are regulated by the FDA in the U.S. and contain clear labelling for dosage, warnings, and ingredients.

The U.S. OTC drugs market holds a dominant position in the region due to the increasing healthcare costs for diagnosis and treatment. Furthermore, the aging population in the U.S., rising chronic disease prevalence, and inclination of the population towards self-medication drive the market growth. Such non-prescription medicines are available for patients in drug stores, retail pharmacies, and online pharmacies with home delivery as well. The expansion of the retail and online pharmacies in the tier-2 and tier-3 cities of the region also contributes to the market growth in the U.S.

Market Trends

• High healthcare costs: With the surge in U.S. healthcare costs, the demand for OTC drugs has increased among consumers to tackle the financial burden.
• Expansion of retail and online pharmacies: The expansion of retail pharmacies and e-pharmacies has improved the availability of products to consumers seeking home deliveries.
• Product innovations: New OTC medicines to cure ailments like eyedrops for allergies increase the market penetration, thus increasing market growth.

Restraints

• Regulatory challenges: Rx-to-OTC conversions are encouraged, but the OTC manufacturers are compelled to strict labelling, testing, and recall procedures to pass through the stringent regulations.
• Generic brand competition: Generic brand OTC drugs are priced lower than the private branded OTC drugs, which decreases the sales for the premium products.
• Consumer distrust: Consumer trust in this market is very important, and any media reports on unsafe ingredients being used can disrupt the market for the OTC drugs.

Opportunity

• AI integration for personalization: Integration of AI helps in personalized and precision medicine for consumers.
• Partnerships and mergers: Many big leaders collaborate to innovate new OTC products for the market.
• Subscription models and DTC distribution: Monthly subscription models help consumers get their medicines monthly without the need to buy again and again.

Recent Developments

• In August 2024, Glenmark Pharma announced its launch of Olopatadine Hydrochloride Ophthalmic Solution USP, 0.1% (OTC) to treat eye allergy through its US-based subsidiary, Glenmark Therapeutics, in the U.S. This OTC product is positioned as an alternative to the active ingredient in Pataday Twice Daily Relief.