Market Size of India Over-the-counter Drugs (OTC) Industry
Study Period | 2021 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 6.73 Billion |
Market Size (2029) | USD 8.76 Billion |
CAGR (2024 - 2029) | 5.39 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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India Over-the-counter Drugs (OTC) Market Analysis
The India Over-the-counter Drugs Market size is estimated at USD 6.73 billion in 2024, and is expected to reach USD 8.76 billion by 2029, growing at a CAGR of 5.39% during the forecast period (2024-2029).
The major factors driving the market's growth include a shift toward self-medication by consumers, product innovation, and the inclination of pharmaceutical companies toward OTC drugs compared to prescription drugs in the country.
Self-medication is taking medicines designed and labeled for treating common health problems without a physician's prescription. Easy access, convenience, and time-saving are the most common reasons for self-medication. Moreover, self-medication with non-prescription drugs has increased in the past years owing to its advantages, such as improving accessibility. An increase in self-medication among the population in India is expected to boost the market growth during the forecast period. For instance, according to the report published by the Cureus Journal in January 2023, self-medication is rising at a significant rate in the country. The high prevalence of self-medication in the country, with 60% of individuals engaging in this practice, is significantly driving the growth of the OTC market in India. The predominant use of analgesics (66.25%) and antipyretics (59.16%) for common ailments like fever, body aches, and common colds indicates a robust demand for these products. Additionally, the inclination of individuals with education above the high school level towards self-medication underscores an expanding consumer base that perceives OTC drugs as a convenient and time-saving solution for minor health issues.
Additionally, according to a report published by the Sage Open Medical Journal in March 2024, the high prevalence of self-medication, particularly in urban areas, is driving the Indian OTC market’s growth, with convenience and lack of time being key motivators. The predominant use of allopathic medicines and reliance on pharmacist recommendations highlight a consumer preference for easily accessible healthcare solutions. This trend is further supported by demographic factors such as higher self-medication rates among females and skilled workers, indicating a robust market potential for OTC pharmaceuticals. Hence, with the high percentage of people undergoing self-medication in India, the market for OTC drugs is expected to grow rapidly during the forecast period.
However, price cuts for various active pharmaceutical ingredients, restrictions for advertising, and lack of stringent regulations for OTC drugs in India are expected to hinder the market's growth during the study period.
India Over-the-counter Drugs (OTC) Industry Segmentation
As per the scope of the report, over-the-counter drugs are referred to as non-prescription drugs. These medicines can be bought by individuals without a doctor's prescription and are safe for consumption without the doctor's consent. The Indian over-the-counter (OTC) drug market is segmented by product and distribution channel. The product segment is further divided into cough, cold, and flu products, analgesics, dermatology products, gastrointestinal products, vitamins, minerals, and supplements (VMS), and other products. By distribution channel, the market is further segmented into hospital pharmacies, retail pharmacies, and other distribution channels. The report offers the value (USD) for the above segments.
By Product | |
Cough, Cold, and Flu Products | |
Analgesics | |
Dermatology Products | |
Gastrointestinal Products | |
Vitamins, Minerals, and Supplements (VMS) | |
Other Products |
By Distribution Channel | |
Hospital Pharmacies | |
Retail Pharmacies | |
Other Distribution Channels |
India Over-the-counter Drugs (OTC) Market Size Summary
The Indian over-the-counter (OTC) drugs market is experiencing significant growth, driven by a shift towards self-medication among consumers, product innovation, and a preference for OTC drugs over prescription medications by pharmaceutical companies. The increasing trend of self-medication is fueled by the convenience and accessibility of OTC products, with a notable rise in the use of analgesics and antipyretics for common ailments. This trend is particularly pronounced in urban areas and among individuals with higher education levels, who view OTC drugs as a time-saving and efficient solution for minor health issues. Despite challenges such as price cuts for active pharmaceutical ingredients and advertising restrictions, the market is poised for expansion, supported by demographic factors and consumer preferences for easily accessible healthcare solutions.
The market for OTC analgesics is particularly robust, driven by the prevalence of pain-related conditions and the availability of non-prescription pain management solutions. The launch of new products and strategic initiatives by key players, such as Himalaya Wellness Company, are expected to further boost market growth. Additionally, the increasing prevalence of flu diseases has created substantial opportunities in the OTC flu treatment segment, with government initiatives aimed at enhancing medication accessibility and affordability. Major market players are actively expanding their product offerings and forming strategic alliances to capture a larger market share. These developments, coupled with the rising demand for OTC pharmaceuticals, indicate a promising growth trajectory for the Indian OTC drugs market in the coming years.
India Over-the-counter Drugs (OTC) Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Shift Toward Self Medication by Consumers
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1.2.2 Product Innovations
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1.2.3 Inclination of Pharmaceutical Companies Toward OTC Drugs from RX Drugs
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1.3 Market Restraints
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1.3.1 Price Cuts for Various Ingredients and Restrictions for Advertising
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1.3.2 Lack of Specific Regulations for OTC Drugs
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1.4 Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size by Value - USD)
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2.1 By Product
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2.1.1 Cough, Cold, and Flu Products
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2.1.2 Analgesics
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2.1.3 Dermatology Products
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2.1.4 Gastrointestinal Products
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2.1.5 Vitamins, Minerals, and Supplements (VMS)
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2.1.6 Other Products
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2.2 By Distribution Channel
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2.2.1 Hospital Pharmacies
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2.2.2 Retail Pharmacies
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2.2.3 Other Distribution Channels
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India Over-the-counter Drugs (OTC) Market Size FAQs
How big is the India Over-the-counter Drugs Market?
The India Over-the-counter Drugs Market size is expected to reach USD 6.73 billion in 2024 and grow at a CAGR of 5.39% to reach USD 8.76 billion by 2029.
What is the current India Over-the-counter Drugs Market size?
In 2024, the India Over-the-counter Drugs Market size is expected to reach USD 6.73 billion.