OTC purchases - size of the market

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  • How much does the average US family spend on OTC products (for pain, antiacids, asthma, etc... the whole OTC market); and how much does the average single person spend on OTC items?


  • Scottcompany-ga, Here's my take on OTC purchases, based on the available data. I'm not sure there is much more that I can add to this analysis. Please look it over and let me know what sort of additional information you feel you need to make for a complete answer to your question. Thanks, pafalafa-ga ===== Kline & Co. is the probably the most well-known and well-respected market analysis firm covering the chemical and pharmacuetical industries. I have used their studies in the past, and they are solid, well-documented, and thorough. According to this Kline & Co press release from July 2005: http://www.klinegroup.com/6_20050721.htm PRIVATE LABELS MAKING STEADY INROADS INTO U.S. NONPRESCRIPTION DRUG MARKET the size of the OTC market in the US was $16 billion in 2003 (the most recent year that data is available). Specifically, their release says: "...Since 1998, the private-label segment of the OTC drug market has grown from $2.8 billion to $3.4 billion in 2003. This equates to a 1.4% increase in a $16 billion market..." This is probably your best number to work with. As I mentioned earlier, other studies cite larger figures, but they appear to take a more expansive view of what's included in OTC products. Using the $16 billion figure for the size of the market, we can make some estimates as follows: http://www.census.gov/population/socdemo/hh-fam/hh1.pdf Households, by Type-- 2004 112,000,000 So, 112 million households in the US are spending $16 billion on OTC drugs, which averages out to: 16 billion / 112 million = $142.86 per household per year on OTC products Similarly, there are http://www.census.gov/popest/national/asrh/NC-EST2004/NC-EST2004-02.xls 228,621,674 people in the US who are 16 years or older. Assuming these are the major purchasers of OTC products, then: $16 billion / 228.6 million = $70 per (adult) person per year Let me know how well these estimates meet your needs. paf


  • Hey scottcompany: I was unable to find specific demographic break-downs of OTC purchases on the web (as pafalafa said, reports with this information cost thousands of dollars), but the Consumer Healthcare Products Association (http://www.chpa-info.org) states that "[t]he average American household spends approximately $185 on OTC medicines per year." The report as a whole discusses OTC products from many viewpoints, and you may find it useful. The report can be found here: http://www.chpa-info.org/web/press_room/position_papers/tax_deductibility.aspx I hope this is a good start for your research. -alex_cole


  • Thank you for this start. I'm keen to find out about OTC items that are more about medication than general health and beauty items... so not toothpaste, rather OTC items that substitute for a doctor and prescription, so antacids, pain relief, alergy relief, asthma, cough, cold, flu and so forth... even if you get a rough market size that would be very helpful. We know most purchasing is done by Moms for families... but we're interested to see if you can find out how much a person (or a family) might spend on such products each year. Of course this will differ quite a lot person to person... but anything you could find would be great. thanks so much


  • scottcompany-ga, There are only a few statistics available on the size of the OTC market, unless you're willing to spend $1000 or more on a proprietary market research report. The OTC market in the US ranges anywhere from $16-28 billion, or more, depending on who's counting -- different researchers define the market differently (for instance, is toothpaste an OTC product?...depends on who you ask). I can certainly use the available range of numbers to figure out average per family and per capita expenses. But I don't think you'll find detailed demographics (e.g. expenses for single people vs married). Let me know if the numbers I am suggesting would meet your needs. Thanks, pafalafa-ga


  • alex_cole-ga, Thanks for posting that link. It actually jives pretty well with my own estimate of $142.86 per household. paf







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