North America OTC Health Products Market Size, Share & Trends Analysis Report By Application (Digestive Health, Women’s Health, Weight Control), By Product, By Form, By Demography, By Distribution Channel, And Segment Forecasts, 2022 - 2030

Report Overview

The North America OTC health products market size was estimated at USD 62.88 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.04 % from 2022 to 2030. The growth can be attributed to factors such as growing consumer awareness, increasing consumer willingness to spend on nutritional supplements, rise in the geriatric population, and increasing prevalence of lifestyle diseases, including obesity & diabetes. In addition, a rise in disposable income, an increase in the number of distribution channels for supplements, as well as improved accessibility further drive the market.

Rising health consciousness and consumer interest in active living primarily support the industry growth. Consumers prefer taking preventive measures against illnesses or diseases rather than curative measures. The growing popularity of physical exercises, meditation, and yoga has significantly contributed to people living more actively. In addition, the geriatric population is more susceptible to infectious diseases and requires supplements to improve immunity or for nutrient deficiencies. According to the U.S. Census Bureau, more than 54 million adults aged 65 and above live in the U.S. today, accounting for about 16.5% of the country’s population.

The North American OTC health product space saw a moderate impact from the COVID-19 pandemic. The COVID-19 pandemic resulted in a surge in consumer preference for immune-boosting supplements. Over the next few years, the space is expected to be driven by increasing consumer awareness about maintaining and improving immunity and well-being. In contrast, due to restrictions imposed by the government to curb the pandemic, segments such as sports nutrition had a negative impact. The effect of the pandemic declined after the third quarter of 2020 in many countries, which helped the industry regain traction.

Nutritional supplement companies are constantly working with athletes, fitness mentors, and celebrity trainers as a part of their marketing strategy to engage a large number of consumers. For instance, in May 2018, Herbalife International of America, Inc. announced a multi-year sponsorship renewal that ended in 2021 (2013–2021) with Cristiano Ronaldo, a soccer player. These influencers educate consumers about the benefits of ingredients in simplified terms while still adhering to regulatory guidelines on its functional claims.

However, ongoing amendments in the regulatory framework of nutritional supplements in many countries in North America are a key challenge impeding the market growth. In addition, the growing incidences of counterfeiting & misbranding of supplements may hamper the growth of this market during the forecast period. According to an article in the New York Post, cheaper alternatives such as synthetic marijuana cost around USD 25 per pound, which is a significant opportunity for some infused product manufacturers to save costs.

Product Insights

The dietary supplement and weight loss products segment accounted for 35.07% of the share in 2021. Factors such as increased consumer awareness about the benefits of a healthy diet, growing self-health consciousness, and a rise in the prevalence of obesity are factors propelling industry growth. There has been increasing consumption of supplements, and companies are also expanding their product portfolios to include daily nutrition & wellness products. This includes multivitamins, single vitamins, minerals, enzymes, amino acids, and conjugated linoleic acid.

CBD nutraceuticals emerged as the fastest-growing segment. The rise in product launches, legalization of CBD across various states & countries, and consumer interest in CBD are factors likely to boost the demand for CBD nutraceuticals in the coming years. An increase in consumption of CBD-based nutraceuticals during weight management, sports nutrition, wellness, and pain management is a key factor expected to drive growth. Around 36% of individuals consume CBD in addition to a prescription drug in the United States.

Application Insights

Immune defense accounted for a share of 13.15% in 2021, owing to increased awareness about immune-based nutrition because of the COVID-19 pandemic and the high number of product launches. The increased prevalence of ailments such as diabetes & infectious diseases and the growing geriatric population are driving the demand for immune supplements. With the growing population, immune-boosting products such as vitamins, minerals, and probiotics have been in high demand. According to the Council for Responsible Nutrition, approximately 73% of Americans consumed dietary supplements in 2020, and about 32% of those surveyed had used them to improve their immunity.

The sports formulation segment accounted for a substantially high share in 2021. Rising awareness about fitness and the high commercial availability of sports nutrition are the primary factors that support market growth. An increase in the number of gyms and fitness centers is also one of the significant factors contributing to the large share, as these centers endorse such products.

By Form Insights

The capsules & tablets segment dominated the market in 2021. This high share can be attributed to the high availability of products in capsule & tablet form, a rise in innovation to enhance capsule & tablet delivery forms, and higher shelf-life. Tablets are one of the preferred forms of OTC products owing to their availability in various forms. Enteric-coated tablets, chewable tablets, sublingual & buccal tablets, effervescent tablets, and sustained-release tablets are the most common types of dietary & nutrition supplement tablets available in the market.

The other forms segment is expected to grow lucratively owing to the increasing number of product launches in powder form, specifically for sports nutrition. Other forms include powders, granules, premixed foods, bars, and sticks, which are a blend of specific nutrition needed by athletes and people looking to supplement their regular meals. Powders are the most preferred form among athletes. Almost all sports and fitness supplements are available in the form of powder, except for oils & sports drinks.

Demography Insights

Adults segment accounted for the largest share in 2021. This can be attributed to the availability of a wide variety of products for the adult demographic. According to a CDC report, 60% of the adults in the age group of 20 to 60 in the U.S. take one or the other form of supplement in addition to their regular meal. Active adults especially prefer almost all kinds of supplements like protein isolates, carbohydrate supplements, omega-3 fatty acids, probiotics, multivitamins, minerals, and amino acids.

Although the vitamin and dietary supplement industry is largely focused on adult and geriatric populations, there are tremendous opportunities for children’s nutrition and dietary supplements. Companies such as Seattle Gummy Company are actively engaged in the development of a pediatric variety of OTC products. In October 2020, Seattle Gummy Company received FDA approval for its Investigational New Drug Application (IND). It is the first of its kind allergy medication in the gummy form, which includes the active ingredient cetirizine.

Distribution Channel Insights

Based on distribution channels, hypermarkets, supermarkets, and convenience stores segment dominated in 2021. This high share can be attributed to the better feasibility of buying OTC products from such places and an increase in the number of strategic initiatives and schemes such as loyalty programs.

The online segment is expected to exhibit the fastest growth during the forecast period. The comfort and convenience of online purchasing are major driving factors. In addition, the majority of consumer health companies are expanding their businesses online by developing interactive and user-friendly e-commerce websites. For instance, in January 2020, CV Sciences, Inc. launched an updated Plus CBD Oil website. It provides customers with an enhanced user experience, which helps drive product sales. These factors are expected to boost the demand for online platforms during the forecast period.

Regional Insights

North America is the most progressive region concerning OTC health product consumption. The rise in awareness about nutritional supplements, increase in the number of gyms & wellness centers, and supportive government initiatives are expected to drive the regional market.

The U.S. is anticipated to witness lucrative growth during the forecast period. In the country, people, especially the younger generation, are increasingly becoming more health-conscious owing to the rising incidences of obesity-related diseases, which is one of the major factors boosting the adoption of nutritional goods in the country. According to the Trust for America's Health, in 2020, the prevalence of obesity among U.S. adults was approximately 42%, and severe obesity was about 9.2% among adults aged 20 years and older.

Key Companies & Market Share Insights

The market is highly fragmented as there are many small players and multiple private label companies. A prominent number of these players are opting for partnerships, and mergers and acquisitions to gain higher market share. For instance, in April 2021, Nestlé Health Science S.A. acquired The Bountiful Company’s core brand for around USD 5.75 billion. It includes brands such as Solgar, Nature's Bounty, Puritan's Pride, and Osteo Bi-Flex, as well as its private-label business. Some of the key players in the North America OTC health product market include:

• Herbalife Nutrition

• CV Sciences, Inc.

• Medical Marijuana Inc.

• Nature's Sunshine Products Inc.

• Johnson and Johnson Services, LLC

• GlaxoSmithKline Inc.

• Bayer AG

• American Health

• THE BOUNTIFUL COMPANY (Nestlé Health Science S.A.)

North America OTC Health Products Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this report, Grand View Research has segmented the North America OTC health products market based on product, form, application, demographics, distribution channel, and region.

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Cough, Cold, and Flu Products

    • Liquid

    • Capsules/Tablets

    • Gummies

    • Others

  • Dietary Supplements and Weight Loss Products

    • Liquid

    • Capsules/Tablets

    • Gummies

    • Others

  • Sports Nutrition Products

    • Liquid

    • Capsules/Tablets

    • Gummies

    • Others

  • Probiotics

    • Liquid

    • Capsules/Tablets

    • Gummies

    • Others

  • CBD Nutraceutical Products

    • Liquid

    • Capsules/Tablets

    • Gummies

    • Others

• Form Outlook (Revenue, USD Billion, 2018 - 2030)

  • Liquid

  • Capsules/Tablets

  • Gummies

  • Others

• Demography Outlook (Revenue, USD Billion, 2018 - 2030)

  • Children

  • Adults

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Digestive health

  • Women’s & Men’s Health

  • Weight Control

  • Joint health

  • Immune Defense

  • Sports Formulation

  • Others

• Distribution Channel Outlook (Revenue, USD Billion, 2018 - 2030)

  • Retail pharmacies

  • Online

  • Hypermarkets, supermarkets, convenience stores

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada