|
Forecast Period
|
2026-2030
|
|
Market Size (2024)
|
USD 5677.32 Million
|
|
Market Size (2030)
|
USD 8672.40 Million
|
|
CAGR (2025-2030)
|
7.13%
|
|
Fastest Growing Segment
|
Cold, Cough & Flu
|
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Largest Market
|
South India
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Market Overview
India Over The Counter Drugs Market was valued at USD 5677.32 Million in 2024 and is anticipated to reach USD 8672.40 Million by 2030, with a CAGR of 7.13% during 2025-2030. The
India Over The Counter (OTC) drugs market is experiencing robust growth driven
by several key factors. Increasing consumer awareness about self-medication
options and accessibility to OTC drugs through pharmacies and online platforms
are major drivers. OTC drugs provide convenience for managing minor ailments
such as headaches, colds, and allergies without the need for a prescription,
which appeals to a wide demographic. The expanding middle-class population with
higher disposable incomes is contributing to increased spending on healthcare
products, including OTC drugs. Government initiatives promoting healthcare
accessibility and affordability, coupled with favorable regulatory reforms
simplifying OTC drug approvals, are also fostering market expansion.
Manufacturers are responding by innovating products with improved formulations,
packaging, and marketing strategies to capture a larger market share. As
healthcare infrastructure continues to develop and consumer health literacy
grows, the India OTC drugs market is poised for continued growth and evolution
in the coming years.
Key Market Drivers
Increasing Awareness for Self-Medication Drives
Market Growth
Self-medication is the practice of taking
medications, to treat self-diagnosed symptoms, without getting a Doctor’s
prescription otherwise on one's own initiative or on the recommendation of
another individual. Easy access, availability and awareness are nowadays the
most common reason behind practicing self-medication. Self-medication is being
practiced frequently in India and is practiced most among the middle-class
family. This self-medication trend is anticipated to drive the cough and cold,
gastrointestinal, analgesics, multivitamins and dermatological segment of the
Over The Counter (OTC) Drugs in the country. The most frequent usage of Over
The Counter (OTC) Drugs is in Fever, Headaches, Toothache ,acne, constipation,
Musculoskeletal pains and Cold, Cough
& Flu. People are more relaying on this self-medication as it is time
saving, often based on previous recommendation as well as the need for faster
relief thus driving the market growth by increasing dependency and reach for
the Over The Counter (OTC) Drug Market. According to an
article pubished titlted, “Prevalence, Pattern, and Reasons for Self-Medication: A
Community-Based Cross-Sectional Study From Central India”, self-medication
was prevalent in 60% of the area studied. The most frequently used
medications for self-medication were analgesics and
antipyretics. Common ailments prompting self-medication
included fever, body aches, common cold, and cough. Female participants were
observed to self-medicate twice as often as male participants. Moreover, individuals with education beyond high school were more likely to
self-medicate compared to those with less than a high school education. The primary reasons cited for
self-medication in this study were time efficiency and the perception that the
condition did not necessitate a visit to a physician.
Rise in Disease Prevalence among the Geriatric
Population
The increase of disease prevalence among the
growing elderly geriatric population is a measure that is expanding the Over
The Counter (OTC) Drug market demand. The dependency on several Over The
Counter (OTC) products like Laxatives, Cold, Cough and Flu along with mild
analgesics and pain reliever ointments for the geriatric population, is a major
reason for the increased demand. Nowadays, due to rising frequency of several
old age health issues many Over The Counter (OTC) drugs such as pain reliever
and ointments are directly related to their comfort and independency for
carrying their everyday lifestyle, thus indirectly maintaining the continuous
demand and thus expanding their Over The Counter (OTC) Drug market.
Increasing cases of Cough Cold & Flu, Body
aches and various other Recurring Health Issues in India
During the pandemic the increased prevalence of
Cold Cough, Fever, Body aches and severe
other similar symptoms along with the fear of contracting the virus had led to increased demand of these Over The
Counter drugs .These Over The Counter (OTC) Drugs as a means for need of self-medication and as preventing measure is
automatically shifting the demand towards the India Over The Counter (OTC) Drug
market. Easily accessible drugs in pharmacies such as analgesics, antibiotics,
anti-diarrheal agents, antipyretics, cough-suppressants, Vitamins & Mineral
supplements (VMS) being cost efficient and having preventive effects during the
pandemic were most in demand thus boosting the Over The Counter (OTC) Drug
Market.
Launch of New & Updated Customer Centric
products accelerates growth of Over The Counter (OTC) Drug
Launching updated products of new formulations of
various traditional Over The Counter (OTC) drugs such as alcohol, dye free,
honey containing cough or cold oral liquids, sedative free cold and cough
formulations, Raft forming oral suspensions, oral and topical analgesics,
naturally extracted acne treatment creams and lotions is gaining customers
faith for lesser side effects and more consumption thereby increasing the
market demand. Also, the usage of various Vitamins and Minerals Supplements
(VMS) in distinct formulations brings more to the health-conscious community
thus gaining more traction toward the Over The Counter (OTC) Drug market. Also,
along with the user’s choice mostly in the dermatology and Vitamins and
minerals Supplements (VMS) segment has reached out reliance and popularity on
the online consumers thus foreseeing for a boost in the upcoming future of the
Over The Counter (OTC) Drug market.
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Key Market Challenges
Regulatory Complexity and Compliance
A significant challenge in the India OTC drugs
market is the regulatory complexity and compliance requirements governing the
sale and distribution of pharmaceutical products. OTC drugs are subject to
stringent regulations by regulatory bodies such as the Central Drugs Standard
Control Organization (CDSCO) and state drug authorities. The regulatory
framework includes requirements for product registration, labeling, quality
standards, and advertising restrictions.
Compliance with regulatory standards adds to the
time and cost involved in bringing OTC drugs to market. Manufacturers must
navigate a complex approval process that includes submission of clinical data,
stability studies, and proof of safety and efficacy. Delays in regulatory
approvals and inconsistent enforcement of regulations across states create
barriers to market entry and expansion, particularly for small and medium-sized
enterprises (SMEs) and new market entrants. Regulatory reforms and amendments
to OTC drug regulations can impact market dynamics and require manufacturers to
adapt quickly to changing compliance requirements. Addressing regulatory
challenges requires collaboration between industry stakeholders, regulatory
authorities, and policymakers to streamline approval processes, clarify
guidelines, and ensure adherence to quality standards while promoting
innovation in the OTC drugs sector.
Counterfeit and Substandard Products
The prevalence of counterfeit and substandard OTC
drugs poses a significant challenge to the India market, compromising patient
safety, eroding consumer trust, and undermining market integrity. Counterfeit
drugs may contain incorrect active ingredients, incorrect dosage levels, or
lack of active ingredients altogether, posing serious health risks to
consumers. Substandard products may fail to meet quality standards, affecting
efficacy and reliability. The proliferation of counterfeit OTC drugs is
exacerbated by inadequate enforcement of intellectual property rights, weak
supply chain controls, and illicit manufacturing and distribution networks.
Counterfeiters exploit gaps in regulatory oversight and engage in illicit
practices such as product diversion, unauthorized manufacturing, and
falsification of packaging and labeling.
To combat counterfeit drugs, stakeholders across
the supply chain, including manufacturers, distributors, retailers, and
regulatory authorities, must collaborate on implementing robust
anti-counterfeiting measures. Technologies such as track-and-trace systems,
serialization, holographic labels, and blockchain can enhance supply chain
transparency and traceability, enabling rapid detection and removal of
counterfeit products from circulation. Public awareness campaigns, pharmacist
training programs, and consumer education initiatives are also critical in
educating the public about the risks of counterfeit drugs and promoting
vigilant purchasing behaviors. Strengthening regulatory enforcement, imposing
stringent penalties for counterfeiters, and enhancing cooperation with
international agencies are essential steps in safeguarding the integrity of the
India OTC drugs market.
Key Market Trends
Expansion of Online Retail Channels
The rapid growth of e-commerce platforms is revolutionizing
the distribution and accessibility of OTC drugs in India. Online retail
channels have emerged as major avenues for consumers to purchase healthcare
products conveniently from the comfort of their homes. This trend has been
accelerated by increasing smartphone penetration, internet connectivity, and
digital payment systems across urban and rural areas. E-commerce platforms
offer a wide range of OTC drugs, including pharmaceuticals, dietary
supplements, personal care products, and medical devices. They provide
consumers with easy access to product information, customer reviews, and
competitive pricing, enhancing transparency and convenience in purchasing
decisions. Manufacturers and retailers are leveraging online retail channels to
expand their market reach, improve distribution efficiency, and engage directly
with consumers through targeted marketing campaigns and personalized
recommendations. In August 2020, Amazon, the prominent online retail
company, introduced an internet pharmacy in India, marking its foray into the
country's digital medicine market. Amazon Pharmacy is initially launching in
Bangalore and may expand to other Indian cities as part of a trial phase. This
strategic move coincides with a significant surge in the online pharmaceutical
sector amid the global coronavirus pandemic. In recent times, major US
technology firms have made substantial investments amounting to billions of
dollars in the Indian economy, underscoring the growing significance of the
digital and e-commerce sectors within the country.
Demand for Natural and Herbal Products
There is a growing preference among Indian
consumers for natural and herbal OTC products perceived as safer and more
aligned with holistic health principles. Herbal remedies, Ayurvedic
formulations, and traditional medicines are gaining popularity due to their
perceived efficacy, minimal side effects, and cultural relevance. Consumers are
increasingly seeking OTC drugs derived from natural ingredients for managing
common health concerns such as immunity boosting, stress relief, and skincare.
The demand for natural and herbal OTC products is
driven by a shift towards wellness-focused lifestyles and growing distrust
towards synthetic chemicals in conventional medications. Manufacturers are
responding by developing innovative formulations, conducting clinical studies
to validate efficacy claims, and obtaining regulatory approvals to market
herbal products as OTC drugs. Collaborations with traditional medicine
practitioners and endorsements from celebrities and influencers further enhance
consumer confidence and adoption of natural OTC remedies.
Segmental Insights
Product Type Insights
Based on the Product Type, cold,
cough & flu medications have asserted their dominance in the India Over The
Counter Drugs Market primarily due to their indispensability in managing
prevalent respiratory infections across diverse demographics and geographic
regions. India's varied climatic conditions contribute to a year-round
prevalence of respiratory ailments, including the common cold, cough, and
influenza, with seasonal spikes intensifying demand during winter and monsoon
seasons. This consistent demand is met by a wide array of OTC medications offering
relief from symptoms such as nasal congestion, sore throat, coughing, and
fever. Consumers increasingly favor self-medication for minor health issues,
appreciating the accessibility and immediate relief provided by these
medications without the necessity of a prescription. Pharmaceutical companies
continually innovate within this category, introducing new formulations and
delivery methods that enhance efficacy and user experience. The extensive
availability of Cold, Cough & Flu medications through retail pharmacies,
online platforms, and supermarkets further bolsters accessibility, ensuring
consumers can readily procure these essential remedies. Despite challenges such
as regulatory compliance and price sensitivity, the category's resilience is
underscored by strategic marketing campaigns, robust supply chain management,
and ongoing consumer education efforts. As such, Cold, Cough & Flu
medications remain pivotal in shaping consumer healthcare choices and driving
significant growth within the OTC drugs sector in India.
Route of Administration Insights
Based on Route of
Administration, the Oral route of administration stands out as the preeminent
category, exerting substantial influence over consumer preferences, market
dynamics, and ongoing product innovation within the OTC sector. This dominance
is underpinned by a convergence of critical factors that collectively
underscore the widespread acceptance, convenience, and therapeutic efficacy of
oral medications among Indian consumers.
The dominance of oral
medications is rooted in their unparalleled accessibility and ease of
administration. Unlike other routes of administration that may require
specialized medical supervision or equipment, oral formulations such as
tablets, capsules, and syrups are readily accessible to consumers across urban
and rural areas alike. This accessibility aligns seamlessly with the increasing
trend towards self-care and self-medication practices among Indian consumers,
who value the convenience of being able to manage common health issues
independently. The extensive product range available within the oral
medications category further reinforces its dominance. Pharmaceutical companies
continually innovate and diversify their offerings to encompass a wide spectrum
of therapeutic indications, ranging from pain relief and fever management to
digestive health, allergy treatment, and nutritional supplementation. This
diversity caters to the varied health needs and preferences of consumers,
enhancing the category's relevance and appeal in addressing a multitude of
everyday health concerns.
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Regional Insights
The Southern region of India emerges as a dominant
force in the country's Over The Counter (OTC) drugs market, showcasing robust
growth and influencing market dynamics significantly. Several factors
contribute to the Southern region's prominence in this sector. The Southern
states of India, including Karnataka, Tamil Nadu, Andhra Pradesh, and Kerala,
boast a dense population with high levels of healthcare awareness and literacy.
The region is home to major metropolitan areas like Bengaluru, Chennai,
Hyderabad, and Kochi, which serve as hubs for healthcare infrastructure and
pharmaceutical distribution. These urban centers not only cater to large local
populations but also attract patients from neighboring regions seeking
specialized medical care and access to a wide range of OTC medications.
The Southern region benefits from a strong network
of retail pharmacies and healthcare facilities. Chain pharmacies, independent
pharmacies, and hospital pharmacies are well-established across urban and
semi-urban areas, ensuring convenient access to OTC drugs for consumers.
Pharmacies in the Southern region often offer personalized services, including
pharmacist consultations and health advice, which enhance consumer trust and
satisfaction. The Southern states have historically shown higher healthcare
expenditure per capita compared to other regions in India. This economic factor
contributes to increased consumer spending on healthcare products, including
OTC medications, thereby driving market demand and growth within the Southern
region.
Recent Developments
- In January 2024, Glenmark Pharmaceuticals Ltd.
(Glenmark), a research-driven global pharmaceutical company, introduced a
biosimilar of the widely used anti-diabetic medication Liraglutide in India for
the first time. Marketed under the brand name Lirafit, the drug has received approval from the Drug
Controller General of India (DCGI). Priced at approximately INR 100 for a
standard daily dose of 1.2 mg, this biosimilar is expected to reduce therapy
costs by about 70% compared to existing options and will be accessible only
through prescription.
- In July 2023, Granules
India announced that the US Food & Drug Administration (US FDA) has granted
approval for its Abbreviated New Drug Application (ANDA), which was filed by Granules
Pharmaceuticals, Inc. (GPI), a wholly owned foreign subsidiary of the company.
The approved ANDA pertains to Acetaminophen and Ibuprofen Tablets, 250 mg/125
mg (OTC). This formulation is bioequivalent to the reference listed drug (RLD),
Advil Dual Action with Acetaminophen Tablets, 250 mg/125 mg (OTC), marketed by
GlaxoSmithKline Consumer Healthcare Holdings. Granules India plans to launch
this product through its Granules Consumer Health (GCH) division.
Key Market Players
- Cipla Limited
- Sun Pharmaceutical Industries
Ltd.
- Lupin Limited
- GlaxoSmithKline
Pharmaceuticals Limited
- Dabur India Limited
- Abbott India Limited
- Dr. Reddy’s Laboratories Ltd.
- Emami Limited
- Reckitt (India) Ltd.
- Johnson & Johnson Pvt.
Ltd.
|
By Product Type
|
By Route of Administration
|
By Dosage Form
|
By Distribution Channel
|
By Region
|
- Cold, Cough & Flu
- Vitamins, Minerals & Supplements (VMS)
- Analgesics
- Gastrointestinal Products
- Dermatology Products
- Others
|
- Oral
- Parenteral
- Topical
- Others
|
- Tablets
- Capsules
- Liquids & Solutions
- Cream/Lotion/Ointments
- Others
|
- Retail Pharmacy
- Hospital Pharmacy
- E-Pharmacy
|
|
Report Scope:
In this report, the India Over The Counter Drugs
Market has been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- India Over The Counter Drugs
Market, By
Product Type:
o Cold, Cough & Flu
o Vitamins, Minerals &
Supplements (VMS)
o Analgesics
o Gastrointestinal Products
o Dermatology Products
o Others
- India Over The Counter Drugs
Market, By
Route of Administration:
o Oral
o Parenteral
o Topical
o Others
- India Over The Counter Drugs
Market, By
Dosage Form:
o Tablets
o Capsules
o Liquids & Solutions
o Cream/Lotion/Ointments
o Others
- India Over The Counter Drugs
Market, By
Distribution Channel:
o Retail Pharmacy
o Hospital Pharmacy
o E-Pharmacy
- India Over The Counter Drugs
Market, By
Region:
o North
o South
o West
o East
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the India Over The Counter Drugs Market.
Available Customizations:
India Over The Counter Drugs Market report with
the given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
India Over The Counter Drugs Market is an
upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]