Over-the-counter is one of the fastest-growing markets in the India Healthcare Industry owing to its availability of options, accessibility, and impact on overall healthcare. By the end of 2023, the market made an overall revenue of INR 530 billion as a result of more people leaning towards self-medication for everyday ailments.

This has become an increasingly popular trend due to a rise in Internet penetration and social media influence. Read along to learn how businesses and investors can leverage the evolving dynamics of the Indian OTC drugs market.

The Market in a Nutshell

·       The Indian OTC drugs market comprises a wide range of products that include vitamins and minerals, cold and cough remedies, digestive aids, skin treatments, and hand sanitizers among others.

·       Out of these, Vitamins and minerals contribute the largest share of 36.84%, followed by cold and cough remedies contributing 20.67% and analgesics contributing 17.1% in total.

What’s Influencing this Unwavering Growth?

E-Commerce at Play

·       As per government research, a significant 32% of urban Indians prefer online medical consultations and purchases for day-to-day ailments compared to making hospital visitations. These platforms offer privacy, convenience, and efficiency in procuring OTC medication.

·       Further, the arrival of several e-pharmacy companies including MedPlus, TATA 1MG, Netmeds.com, and PharmEasy expanded the reach of OTC drugs by providing door-step delivery options.

Opportunities Offered by Global Markets

·       In 2022, India exported nearly INR 1270 billion worth of OTC drugs, out of which, the USA accounted for 36% of exports, followed by the UK and South Africa. These numbers indicate a strong international demand for Indian pharmaceutical products.

Unprecedented Government Support

·       With initiatives like the “Production Linked Incentive Scheme” and the “Scheme for Bulk Drug Parks”, over INR 6,940 crore was allocated in order to strengthen domestic manufacturing and reduce dependency on imports.

The Combined Strength Potential of Retail and Online Stores

·       Both online and offline retailers like MedPlus, Apollo Pharmacy, Tata 1mg, and PharmEasy play a pivotal role in enhancing the accessibility of OTC drugs across India.

·       Even though Tata 1mg leads with over 47.8 million monthly visits, these initiatives work together with retail pharmacies, which own 73 % of the market, to offer convenience, privacy, and pharmaceutical support in both rural and urban areas equally.

What to Expect in the Near Future?

·       The future of OTC drugs in India looks promising, with continued growth expected as consumer attitudes shift towards self-care and preventive health measures. Companies are likely to invest more in marketing strategies that resonate with local populations while also leveraging digital platforms for wider reach.

·       The market is anticipated to reach a market size of INR 1540 Bn by 2029 growing at a CAGR of 19.00% between 2023-2029 supported by the growing trend of self-medication among consumers, especially for minor ailments such as headaches and colds.

The Indian OTC drugs market offers an ocean of opportunities for entrepreneurs and investors due to a combination of rapid population growth, government support, and the increasing use of e-commerce. Also, the Indian government has been working towards making healthcare more accessible through regulatory reforms that simplify the approval process for OTC drugs. Additionally, the rising export opportunities in the market are further diversifying the consumer base. By leveraging these factors, interested parties can position themselves at the forefront of this thriving market.