Market Insights Health Pharmacies OTC Products

Other OTC Pharmaceuticals (Pharmacies) - Japan

Japan

Revenue in the Other OTC Pharmaceuticals market is projected to reach €1.84bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.68%, resulting in a market volume of €2.00bn by 2029.
In global comparison, most revenue will be generated in the United States (€4,619.00m in 2024).
In relation to total population figures, per person revenues of €15.03 are generated in 2024.

Key regions: France, Australia, India, South Korea, Germany

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Analyst Opinion

The Other OTC Pharmaceuticals (Pharmacies) market in Japan is experiencing significant growth and development.

Customer preferences: Japanese consumers have a strong preference for self-medication and using over-the-counter (OTC) pharmaceuticals to treat minor ailments. This preference is driven by several factors, including convenience, cost-effectiveness, and a cultural emphasis on personal responsibility for health. Additionally, the aging population in Japan has contributed to the demand for OTC pharmaceuticals, as older individuals often require medications for chronic conditions that can be managed with non-prescription drugs.

Trends in the market: One notable trend in the Other OTC Pharmaceuticals (Pharmacies) market in Japan is the increasing popularity of natural and herbal remedies. Japanese consumers are becoming more health-conscious and are seeking out products that are perceived as being more natural and less chemically based. This trend is reflected in the growing availability of herbal supplements, traditional medicines, and alternative therapies in pharmacies across the country. Another trend is the expansion of online pharmacies in Japan. With the rise of e-commerce and the increasing convenience of online shopping, more consumers are turning to online platforms to purchase their OTC pharmaceuticals. This trend has been accelerated by the COVID-19 pandemic, as consumers have sought to minimize their exposure to crowded public spaces.

Local special circumstances: In Japan, pharmacies are highly regulated and must meet strict licensing requirements. This has created a barrier to entry for new players in the market, leading to a relatively small number of pharmacy chains dominating the industry. These established players have a strong presence and brand recognition, which gives them a competitive advantage. Additionally, pharmacies in Japan often offer a range of services beyond dispensing medications. Many pharmacies provide health consultations, health checks, and advice on lifestyle and nutrition. This integrated approach to healthcare has contributed to the popularity of pharmacies as a one-stop-shop for consumers seeking both medication and wellness advice.

Underlying macroeconomic factors: The Japanese healthcare system is characterized by universal coverage and a strong emphasis on preventive care. This has resulted in a high demand for healthcare services and products, including OTC pharmaceuticals. The government's focus on promoting public health and wellness has also contributed to the growth of the Other OTC Pharmaceuticals (Pharmacies) market in Japan. Furthermore, the aging population in Japan has created a significant market for OTC pharmaceuticals. As the elderly population continues to grow, so does the demand for medications to manage chronic conditions and age-related ailments. This demographic shift is expected to continue driving the growth of the Other OTC Pharmaceuticals (Pharmacies) market in Japan in the coming years.

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.