Price increases drive growth as volumes rise slowly
Romania’s over-the-counter (OTC) medicines and health products market reached 8.2 billion lei in 2025, doubling in value compared with five years earlier, according to data from market research company Cegedim, cited by Ziarul Financiar.
The expansion has been driven mainly by higher prices, while sales volumes grew at a much slower pace. In 2020, around 240 million packs of OTC products were sold, rising to 252 million units in 2025 — an increase of just 5% over the period.
Read also: UNIFARM clears historic debt and posts €274m turnover equivalent
Unlike prescription medicines, whose prices are regulated by the state, OTC products are sold at freely set prices, making them more exposed to inflation and tax changes. A key moment for the market came in August 2025, when supplements and vitamins — part of the OTC category — saw their VAT rate increase from 9% to 21%, triggering another round of price hikes.
As a result, market value has grown much faster than consumption, pointing to a structural shift in how the sector expands. While demand remains relatively stable, pricing dynamics have become the main driver of revenue growth.
At the same time, competition has intensified. In recent years, the OTC segment has become a battleground for marketing budgets, with manufacturers investing heavily in advertising and brand visibility to influence consumers directly. With purchasing decisions made by patients rather than doctors, promotion and shelf presence have become critical success factors.
According to ZF, this mix of free pricing, fiscal pressure and rising marketing spend continues to shape the evolution of Romania’s OTC market, which remains one of the most dynamic segments of the local pharmaceutical industry.
Photo: freepik.com
