Philippines OTC Pharmaceutical Market Report and Forecast 2024-2032

Philippines OTC Pharmaceutical Market Outlook

The Philippines OTC pharmaceutical market size market is expected to grow at a CAGR of 5.2% during the forecast period of 2024-2032, driven by the rising demand for convenient and affordable medications for common health concerns across the region.

Philippines OTC Pharmaceutical Market Overview

With a large population base, rising health awareness, and access to healthcare services, the demand for OTC pharmaceuticals is experiencing significant surge across Philippines. The Filipino government has made medical sector a priority area of development with an allocation of PHP 296.3 billion in its annual budget. A substantial portion of this budget (around PHP 29.1 billion ), is earmarked for the purchase and distribution of a wide range of pharmaceuticals, including drugs, medicines, vaccines, as well as medical and dental supplies, to government health facilities across the country. As a result, Philippines OTC pharmaceutical market share is poised to witness a notable rise in the forecast period.

The OTC drug application across multiple domains including pain relief, allergy treatment, as well as wellness also fuels the market growth. The expansion of drugstores and pharmacies along with rising prevalence for e-commerce is one of the major market trends. In addition, increasing incidence of drugs approvals by regulatory authorities and efforts to improve the healthcare infrastructure and services to aid better outcomes for the population are expected to impact the market value positively in coming years.

Surge in Partnerships to Drive Philippines OTC Pharmaceutical Market Growth

In January 2024, STADA Philippines Inc., appointed Zuellig Pharma,  a pioneering healthcare solution provider to distribute their products across Philippines. The alliance is expected to promote over the counter (OTC) drugs and consumer brands such as FERN-C vitamin C range and the Oilatum skincare line in the region. It will also allow easy access to ophthalmology, antibiotics, and cardiovascular medications, which can be helpful to decrease the rising prevalence of cardiac arrest associated deaths.

Increasing Integration of Artificial Intelligence to Expedite Drug Development Process

Philippines OTC pharmaceutical market demand is driven by increased efforts to improve the efficacy and quality of drugs. Researchers have been deploying the latest technologies such as machine learning and artificial intelligence to improve efficiency and bring precise solutions to the consumers. In June 2023, BioMed X and Sanofi  launched a joint research venture to leverage artificial intelligence aided drug development. Titled as the “Next Generation Virtual Patient Engine for Clinical Translation of Drug Candidates” (VPE) project, it plans to develop a computational platform that predicts the efficacy of first or best-in-class drug candidates. Following the global trend, Philippines has also been witnessing infrastructure specific improvements to integrate all modern facilities in their research laboratories, which is anticipated to fuel the market value the forecast period.

Rising Prevalence for Digital Solutions

Philippines OTC pharmaceutical market size has increased with the continuous economic growth and rising disposable income levels as more people can afford and procure OTC drugs easily. With the sudden COVID-19 outbreak, the demand and application of digital services gained a massive momentum. Consequently, the preference for e-commerce platforms witnessed a surge, owing to variety of facilities such as contactless deliveries along with an array of options to choose from.

Philippines OTC Pharmaceutical Market Segmentation

Market Breakup by Product Type

• Pain Relievers

• Anti-allergic

• Gastrointestinal Drugs

• Vitamins and Minerals

• Cough and Cold Remedies

• Others

Market Breakup by Distribution Channel

• Retail Pharmacies

• Online Pharmacies

• Drug Stores

Market Breakup by Formulation Type

• Tablets

• Liquids

• Ointments

• Sprays

Philippines OTC Pharmaceutical Market Regional Analysis

Manila, holding a massive portion of educated and urban population, leads the regional market share. With greater access to healthcare services and typically higher disposable incomes, the OTC pharmaceutical consumption is higher in the region. In addition, the presence of supermarkets, convenience stores and other modern retail channels aids an additional opportunity for OTC pharmaceutical organizations.

Popular tourist spots such as Boracay, Palawan, and Cebu, are poised to hold to a substantial Philippines OTC pharmaceutical market share in forecast period. The growth can be attributed to increased tourist footfall, leading to higher demand for common medications such as motion sickness medication, sunburn relief and insect repellents.

With rising emphasis on developing improved alternatives for the masses, rural and remote areas are also witnessing expedited infrastructure developments. The government along with key healthcare providers are taking critical steps to bridge the gap and provide access to better healthcare facilities.

Philippines OTC Pharmaceutical Market: Competitor Landscape

In November 2023, Lloyd Laboratories (a Filipino firm)  and United States based DifGen Pharmaceutical signed a USD 20 million worth partnership to boost the local production of pharmaceuticals in the country. The alliance can be marked as a vital step towards the promotion of a robust local pharmaceutical and healthcare industry. It is also indicative of the current market trend which focuses on increased merger and acquisition activities.

The key features of the Philippines OTC pharmaceutical market report include patent analysis, grants analysis, clinical trials analysis, funding and investment analysis, partnerships, and collaborations analysis by the leading key players. The major companies in the market are as follows:

• Johnson & Johnson

• GlaxoSmithKline

• Bayer AG

• Pfizer Inc.

• Sanofi

• Novartis International AG

• Procter & Gamble

• Reckitt Benckiser Group plc

• Takeda Pharmaceutical Company Limited

• Boehringer Ingelheim

• Sun Pharmaceutical Industries Ltd.

• Perrigo Company plc

• Teva Pharmaceutical Industries Ltd.

• Mylan N.V. (now part of Viatris Inc.)

• Cipla Limited

Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

Key Highlights of the Report