Bayer’s Perspective on the Mexican OTC Market
According to Sergio Gómez, the General Manager of Bayer’s Consumer Mass Division in Mexico, the over-the-counter (OTC) medication market in Mexico, though mature, is substantial and presents an opportunity for Bayer’s Consumer Mass Division. The market has annual growth rates of approximately 4.0%, generating over 7,000 million pesos in audited annual revenue for Bayer.
Market Size and Growth
- Bayer sells over 2,100 million doses annually in Mexico, equating to an average of two doses per adult Mexican per month.
- The OTC market is large, with Bayer selling 73 million packs yearly.
- The market is growing steadily, albeit at a moderate pace in units and volume.
Impact of COVID-19 Pandemic
Gómez explained that the COVID-19 pandemic transformed this market, which previously experienced double-digit growth but is now stabilizing with moderate sales volume.
Future Prospects
Gómez believes that increased awareness and knowledge about self-care among the population will favor and strengthen this market. He emphasized that consumers need greater access to products, which Bayer is working on with commercial partners, pharmacies, distributors, and wholesalers to make products more accessible and closer to people.
Wide Accessibility in Mexico
One advantage of the Mexican market is its broad regulatory access to OTC medications. These can be found in various retail outlets, including supermarkets, convenience stores, small shops, and digital platforms like Amazon and Mercado Libre.
While chain pharmacies account for most transactions, the e-commerce channel is growing, depending on product type. It’s more relevant in categories like dermocosmetics or vitamins but currently accounts for less than 4% of the market, according to Gómez.
Price Stability and Innovation
OTC medication prices in Mexico have remained stable, adjusting in line with inflation. The industry focuses on adding value through product innovation rather than price adjustments.
Market Value and Opportunities
The Mexican OTC market reached a value of 2,670 million US dollars in 2024 and is projected to grow to 4,235 million US dollars by 2033, according to estimates from Grupo IMARC, a market research firm.
Gómez noted that while innovative medications are available without a prescription in several countries, Mexico still requires a prescription. He sees this as an opportunity for these products to become OTC in Mexico, allowing greater access for consumers.
Bayer’s Position in the Mexican Market
For Bayer, Mexico is the fourth most significant global market in this division, following the United States, China, and Germany. The company’s portfolio includes over 20 brands across categories such as analgesics, cold remedies, vitamins, digestive health products, women’s health, and dermatological care.
Bayer’s top-selling product is Aspirin, followed by Flanax for muscle pain and inflammation, Redoxon (a vitamin C supplement to strengthen the immune system), and Tabcin (an anti-cold medication).
Bayer’s Consumer Division focuses on OTC products that do not require a medical prescription, as their safety and efficacy have been proven by millions of doses consumed.
Key Questions and Answers
- What is the current state of the Mexican OTC market according to Bayer? The market is mature but substantial, with annual growth rates of around 4.0%. It presents an opportunity for Bayer’s Consumer Mass Division, generating over 7,000 million pesos in audited annual revenue.
- How has the COVID-19 pandemic affected the Mexican OTC market? The pandemic transformed this market, which previously experienced double-digit growth but is now stabilizing with moderate sales volume.
- What are the future prospects for the Mexican OTC market? Increased awareness and knowledge about self-care among the population will favor and strengthen this market. Bayer is working on making products more accessible to consumers.
- What makes the Mexican OTC market unique? The market has broad regulatory access to OTC medications, available in various retail outlets and digital platforms.
- What is the projected growth of the Mexican OTC market? The market reached a value of 2,670 million US dollars in 2024 and is expected to grow to 4,235 million US dollars by 2033.
- What opportunities does Bayer see in the Mexican OTC market? Bayer sees an opportunity for innovative medications currently requiring prescriptions to become OTC, allowing greater access for Mexican consumers.
