OTC Products - Japan

Japan

The OTC Products market in Japan is expected to witness significant growth in the coming years.
According to projections, the revenue in this market is set to reach ¥€10.27bn by 2024.
Furthermore, it is anticipated that the market will experience a steady annual growth rate of 1.22% from 2024 to 2029, resulting in a market volume of ¥€10.91bn by the end of this period.
When compared globally, China is expected to generate the highest revenue in the OTC Products market, with an estimated value of ¥€69.46bn by 2024.
This highlights the significant market potential China.
In terms of per person revenues, in Japan is projected to generate ¥€83.75 in 2024.
This figure provides insight into the average spending on OTC Products market per individual in the country.
"Japan's OTC Product market is flourishing as consumers increasingly seek alternative remedies for health and wellness."

Key regions: Europe, Australia, United Kingdom, Germany, South Korea

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Analyst Opinion

The OTC Products (Pharmacies) market in Japan is experiencing steady growth and development.

Customer preferences: Japanese consumers have a high level of trust in OTC products and often rely on them for self-medication. This preference for self-care is driven by factors such as convenience, cost-effectiveness, and a desire for immediate relief. Additionally, the aging population in Japan has contributed to the demand for OTC products, as older individuals often require medications for chronic conditions that can be managed with over-the-counter options.

Trends in the market: One notable trend in the OTC Products (Pharmacies) market in Japan is the increasing popularity of natural and herbal remedies. Consumers are becoming more health-conscious and are seeking products that are perceived as safer and more sustainable. This trend is also influenced by the growing interest in traditional Japanese medicine, which emphasizes natural remedies and holistic approaches to health. Another trend is the expansion of online sales channels for OTC products. E-commerce platforms and online pharmacies have gained traction in Japan, providing consumers with a convenient and accessible way to purchase OTC products. This trend has been further accelerated by the COVID-19 pandemic, as consumers are increasingly turning to online shopping to avoid crowded physical stores.

Local special circumstances: Japan has a well-developed healthcare system and a strong regulatory framework for OTC products. The country has strict regulations in place to ensure the safety and quality of OTC medications. This has fostered a high level of trust among consumers, who feel confident in the effectiveness and reliability of OTC products available in pharmacies. Additionally, the presence of a large number of pharmacies in Japan contributes to the accessibility of OTC products. Pharmacies are widely distributed across the country, making it convenient for consumers to access the medications they need. The role of pharmacists is highly regarded in Japan, and they play a crucial role in providing advice and guidance to consumers on the appropriate use of OTC products.

Underlying macroeconomic factors: The aging population in Japan is a significant driver of growth in the OTC Products (Pharmacies) market. As the population continues to age, the demand for medications to manage chronic conditions is expected to increase. This presents opportunities for OTC product manufacturers to develop and market products that cater to the specific needs of older consumers. Furthermore, the increasing healthcare costs in Japan have also contributed to the growth of the OTC Products (Pharmacies) market. OTC products are often more affordable compared to prescription medications, making them an attractive option for consumers seeking cost-effective solutions for minor ailments. In conclusion, the OTC Products (Pharmacies) market in Japan is growing due to customer preferences for self-care, the popularity of natural remedies, the expansion of online sales channels, the well-developed healthcare system, the accessibility of pharmacies, the aging population, and the increasing healthcare costs. These factors are driving the demand for OTC products and shaping the market landscape in Japan.

Methodology

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.