Inflation hit the OTC healthcare sector again in 2023, with the average price of products increasing by 8 per cent compared to the previous year. This drove a 4 per cent increase in value sales, but unit sales were down 4 per cent, according to industry body PAGB’s 2023 annual review.

There was a negative sales trajectory throughout the year that began with a growth spike in January and February and ended with a dip in November and December on the back of the high-incidence flu season the previous winter. Flawed media reports about cough and cold medication shortages and the “tripledemic” towards the end of 2022 were also contributory factors, said PAGB.

The OTC medicines market was worth £3.19bn in 2023. The best performing categories were skin treatments (value sales up 11 per cent vs 2022) and eye care (up 13 per cent). Pain relief and sleep aids showed a slight decline (both down 1 per cent in value).

The cough, cold and sore throat category sold 7 per cent fewer units in 2023 as a result of a milder flu season and reduced media attention (total value sales up 2 per cent at £583m). Opportunities across the wider OTC sector lie in elevating consumer health, rather than remedying temporary dips in health, according to PAGB.

“Future OTC growth lies in improving quality of life, while cough, cold and sore throat is largely at the mercy of sickness circulation,” it added.