The consumer health market sits at the crossroads of healthcare and consumer goods. Over-the-counter (OTC) remedies and acute self-care solutions playing a critical role in everyday wellness. As consumers take greater ownership of their health, the OTC category is evolving, creating meaningful opportunities for both strategics and private equity investors.
In this latest Special Report co-authored by L.E.K. Consulting and Lincoln International, we explore the structural tailwinds shaping the OTC landscape, where growth is concentrated and what investors should prioritize when evaluating acquisition targets in this increasingly dynamic market.
As the market continues to expand, several themes stand out that highlight both the scale of the opportunity and the factors shaping future growth:
- Large, resilient market: The U.S. OTC remedies and acute self-care market reached approximately $57 billion in 2024, demonstrating steady long-term growth and resilience even during economic uncertainty.
- High-growth segments: Oral care, deodorant and eye care are among the fastest-growing categories, fueled by consumer preferences for natural wellness-forward products.
Consumer behavior shifts: Rising healthcare costs and increasing self-care habits are driving consumers toward OTC products as first-line solutions. - Innovation and sustainability: Natural formulations, sustainable packaging and Rx-to-OTC switches are reshaping the category and expanding consumer access.
- M&A momentum: Private equity and strategic players are actively consolidating brands and platforms, with large-scale deals underscoring the sector’s attractiveness. Emerging and digitally native brands present compelling bolt-on opportunities.
Conclusion
OTC remedies and acute self-care offer investors an attractive combination of scale, stability and structural growth drivers. With innovation accelerating across sub-segments, and consumer reliance on self-care deepening, the sector represents a compelling platform for long-term value creation. Success will require careful alignment with secular tailwinds and strategic innovation.
For further insights into our analysis, download the full report.
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