India Over-the-counter Drugs (OTC) Market Size

OTC Drugs in India 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 COVID-19 pandemic had a significant impact on the market. For instance, India's manufacturers rely heavily on imports of their active pharmaceutical ingredients (APIs) from China. The lockdown slowed the production of APIs, resulting in less availability and higher costs for the materials required for the products. Owing to the high demand for essential OTC drugs, the government restricted the export of some essential medicine. Besides over-the-counter painkillers and fever reducer paracetamol, drugs restricted for exports include common antibiotics, metronidazole, and those used to treat bacterial and other infections, as well as vitamin B1 and B12 ingredients. Due to the countrywide lockdown, the traditional supply chain of OTC drugs faced a lot of difficulties. Many of the essential OTC drugs were not available. Even after the specific guidelines and support of the state government to transport essential OTC drugs, many retail pharmacies faced a shortage of stock. On the other hand, the online purchase of over-the-counter drugs increased. To monitor and support the online purchase of medicine and OTC products, the central and states governments were devising new schemes and policies. For instance, in April 2020, the Medical and Health Department of Andhra Pradesh launched 'Covid Pharma', a mobile application to keep track of people purchasing medicines over-the-counter (OTC) for cough, cold, and fever from medical stores across the state. However, currently the OTC market has reached pre-pandemic nature in terms of demand and sales of the OTC drugs.

The key factors propelling the growth of the Indian over-the-counter drugs market are the shift in consumer attitude toward self-medication, product innovations, and the inclination of pharmaceutical companies toward OTC drugs from prescription (RX) drugs.

Most of India's population relies on self-medication, and the purchasing power of the middle class is growing. This trend of self-medication is expected to drive growth in cough and cold formulations, gastrointestinal, analgesics, and dermatological drugs. As per the MDPI report 2022, the prevalence of self-medication in India is around 44.9%. The self medication practice is seen highest among the middle-lower class family with a prevalence rate of 26.31%. The high prevalence of self-medication indicates the high demand for OTC drugs in India, which will drive the market in the country.

However, self-medication was also seen to be based on income, occupation, and education. Furthermore, minor ailments were the primary reason for SM, among which headache was the most commonly reported. Self-medication is seen as important for acute disorders and the management of chronic diseases, including minor ailments. Also, some of the critical reasons considered by consumers to self-medicate are lack of time, the need for fast relief, and the high consulting fees of physicians.

Moreover, the launch of new products will further drive the market. For instance, in January 2021, Hamdard Laboratories launched 12 OTC products for bossting immunity. A large number of drugs, such as antacids, cold and cough preparations, laxatives, analgesics, vitamins, and anti-allergy products, are consumed as self-medicated products in India. Thus, these factors are expected to drive the growth of the overall market.

However, lack of proper regulation for OTC drugs and certain restrictions on advertising are some of the factors restraining the market growth in India.