OTC Dry Eye Drops Market (By Type: Branded, Generics; By Product Type: With Preservatives, Preservative Free; By Viscosity: Low, High; By Distribution Channel) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global OTC dry eye drops market size was estimated at around USD 3.65 billion in 2023 and it is projected to hit around USD 7.68 billion by 2033, growing at a CAGR of 7.72% from 2024 to 2033. 

Key Pointers

• North America led the market with the largest revenue share of 41% in 2023.
• The generics segment held the largest revenue share of 57% in 2023. 
• The preservative segment held the highest revenue share of 62% in 2023. 
• The preservative-free segment is expected to witness the highest CAGR of 8.87% from 2024 to 2033. 
• The low-viscosity segment dominated the market and held the largest revenue share of 76% in 2023. 
• The retail pharmacies segment dominated the market and held the largest revenue share of 41% in 2023. 
• The online pharmacies segment is expected to witness the highest CAGR of 13.44% during the forecast period.

OTC Dry Eye Drops Market Overview

The over-the-counter (OTC) dry eye drops market stands as a pivotal segment within the pharmaceutical industry, catering to the needs of individuals seeking relief from ocular discomfort. This market segment plays a crucial role in providing accessible and convenient solutions for addressing the symptoms of dry eye syndrome. In this overview, we delve into the dynamics, trends, and factors shaping the OTC dry eye drops market landscape.

OTC Dry Eye Drops Market Growth 

The growth of the OTC dry eye drops market can be attributed to several key factors. Firstly, the increasing prevalence of dry eye syndrome globally is driving demand for accessible and convenient solutions. Lifestyle changes, prolonged screen time, and environmental factors contribute to the rising incidence of dry eye cases. Additionally, advancements in formulation technologies have led to the development of innovative OTC dry eye drops with enhanced efficacy, further stimulating market growth. Moreover, growing consumer awareness about ocular health and the availability of information through digital platforms are fostering demand for OTC remedies. These factors collectively contribute to the expansion of the OTC dry eye drops market, making it a significant segment within the pharmaceutical industry.

Report Scope of the OTC Dry Eye Drops Market

OTC Dry Eye Drops Market Trends

• Preservative-Free Formulations: There is a growing trend towards preservative-free formulations in OTC dry eye drops, addressing concerns about potential adverse effects on ocular tissues and catering to individuals with sensitivity issues.
• Integration of Natural Ingredients: Manufacturers are increasingly incorporating natural and herbal ingredients into OTC dry eye drops, aligning with the rising preference for holistic healthcare solutions. Botanical extracts and plant-based compounds offer gentler yet effective remedies for dry eye relief.
• Specialized Product Offerings: A trend towards diversification of product offerings is observed, with manufacturers introducing specialized formulations targeting specific dry eye subtypes and symptom profiles. These formulations address factors such as evaporative dry eye, aqueous deficiency, or ocular surface inflammation, enhancing therapeutic outcomes and patient satisfaction.
• Consumer Education and Awareness: There is an increasing focus on consumer education and awareness initiatives regarding ocular health and dry eye management. Manufacturers are leveraging digital platforms and marketing campaigns to educate consumers about the availability and benefits of OTC dry eye drops, fostering greater adoption and demand.

Type Insights

The generics segment dominated the market and held the largest revenue share of 57% in 2023. The high share of this segment is primarily due to the cost-effectiveness of generic products. These are often more affordable than their brand-name counterparts, making generic products an easier alternative in markets where consumers are price-sensitive and looking for cost-effective options to manage their conditions. Additionally, ease of purchase further boosts segment growth, as generic products are readily available for purchase without a prescription, making them easily accessible to consumers.

The branded segment is anticipated to register a lucrative CAGR over the coming years. Branded products have an established reputation and recognition in the market; thereby, consumers have a higher level of trust and choose products from well-known and reputable brands owing to their history of quality and efficacy. Moreover, branded products have unique formulations and delivery methods protected by patents. This exclusivity can give these brands an edge in the market until generics can replicate or improve upon the patented features, thereby contributing to the overall growth.

Product Type Insights

The preservative segment dominated the market and held the largest revenue share of 62% in 2023. Dry eye drops with preservatives tend to have a longer shelf life compared to preservative-free alternatives. This longer shelf life can be attractive to both manufacturers and consumers, as it reduces the risk of product expiration and wastage. Furthermore, preservatives prevent bacterial growth in the solution, allowing the product to be stored at room temperature. This convenience in storage makes preservative-containing products more desirable to consumers, thereby contributing to overall growth.

On the other hand, the preservative-free segment is expected to witness the highest CAGR of 8.87% during the forecast period. Preservative-free eye drops are formulated without chemical preservatives, which is a significant advantage for individuals who are sensitive or allergic to preservatives. Moreover, growing awareness about the potential drawbacks of using preservatives in eye drops, such as dryness, discomfort, and allergic reactions, has been increasing. Thus, consumers are becoming more conscious of the ingredients in the products they use and are actively seeking preservative-free options.

Viscosity Insights

The low-viscosity segment dominated the market and held the largest revenue share of 76% in 2023. Ease of application and rapid relief are the major factors that drive segment growth. Low-viscosity eye drops are often easier to wear due to their thin and watery consistency. This makes them more comfortable to use, especially for individuals who may have difficulty with thicker or more viscous formulations. Moreover, low-viscosity eye drops tend to spread quickly across the ocular surface, providing rapid relief to dry and irritated eyes. Additionally, eye drops with low viscosity are better tolerated and easier to use than gel ocular drops or ointments.

On the other hand, the high-viscosity segment is expected to witness the fastest CAGR during the forecast period in the OTC dry eye drops market. High-viscosity eye drops can provide a longer duration of effect compared to low-viscosity eye drops; thus, the longer duration of effects is a major factor that boosts overall growth. Furthermore, high-viscosity eye drops are able to reduce friction, which can otherwise lead to inflammation, and minimize vision blurring, thus improving ocular comfort.

Distribution Channel Insights

The retail pharmacies segment dominated the market and held the largest revenue share of 41% in 2023. Accessibility and convenience play a crucial role in contributing to the segment growth. Retail pharmacies, including chain pharmacies and independent drugstores, are widespread and easily accessible to consumers. They are often conveniently located in neighbourhoods, shopping centers, and healthcare facilities, making it easy for consumers to purchase OTC products like dry eye drops. Moreover, retail pharmacies offer one-stop shopping for a wide range of healthcare products, including OTC medications, supplements, personal care items, and more. This convenience encourages consumers to buy more products from retail pharmacies, thereby contributing to the growth of the segment.

The online pharmacies segment is expected to witness the highest CAGR of 13.44% during the forecast period. Online pharmacies save consumers’ time by eliminating the need to travel to a physical pharmacy. Thus, the time-saving factor is contributing to the segment’s growth. Moreover, the COVID-19 pandemic further accelerated the adoption of online pharmacies, as consumers sought ways to minimize physical interactions and reduce the risk of exposure to the virus.

Regional Insights

North America dominated the market with the largest revenue share of 41% in 2023 due to its large consumer base, advanced healthcare infrastructure, high awareness and education about health products, and a growing aging population with increased dry eye susceptibility. Moreover, the significant presence of pharmaceutical companies focusing on OTC products, higher disposable incomes, a supportive regulatory framework, and a strong retail pharmacy network further propel regional growth.

As per data from the National Health and Wellness Survey conducted in 2022, approximately 6.8% of the U.S. adult population has been diagnosed with dry eye disorder (DED). This has created a huge market opportunity for industry players, and manufacturers have responded by developing and promoting their products at a frequent pace.

The Asia Pacific region is estimated to witness the fastest growth in the market over the forecast period, aided by its large and burgeoning population base, an aging demographic leading to higher dry eye prevalence, and an ever-expanding middle class with increased purchasing power. The market in this region is highly price-sensitive and provides better growth opportunities for generic OTC dry eye drops.

OTC Dry Eye Drops Market Key Companies

• Rohto Pharmaceutical Co. Ltd.
• AbbVie, Inc.
• Johnson & Johnson Services Inc.
• Santen Pharmaceutical Co. Ltd.
• Novartis AG
• Prestige Consumer Healthcare Inc.
• Altaire Pharmaceuticals Inc.
• Sentiss Pharma Private Limited
• Medicom Healthcare Ltd.

OTC Dry Eye Drops Market Segmentations:

By Type 

• Branded
• Generics

By Product Type 

• With Preservatives
• Preservatives Free

By Viscosity 

• Low Viscosity
• High Viscosity

By Distribution Channel 

• Drugstores and Supermarkets
• Online Pharmacies
• Retail Pharmacies
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa