India OTC drugs market valued at INR 448.20 bn in 2022 and forecast to reach INR 1,547.08 bn by 2029, with trends, demand analysis, top players insights, and outlook.
Market Overview
India Over the Counter Drugs Market Overview
The revenue of the India OTC market amounted to INR 448.20 billion in 2022, growing at a historical CAGR of 26.00%. The market is projected to reach INR 1,547.08 billion by 2029, expanding at a CAGR of 19.10% during the forecast period (2023–2029). Market growth is primarily driven by increasing inclination toward self-medication, the introduction of new OTC drugs, ongoing epidemiological transition, and the rapid expansion of e-commerce, which is boosting production and accessibility. Among drug types, vitamins and minerals dominate the segment due to their high demand among the middle-class population, accounting for approximately 36.84% of the total OTC drug market share in 2022.
Market Definition of India OTC Market
Definition of India OTC Market: It has been defined as the expected total revenue obtained by domestic sales from all types of OTC drugs type such as Vitamins and minerals, Cold and cough remedies, Analgesics, Digestive and Intestinal remedies, Skin treatment, and Hand sanitizer. The report has included major OTC manufacturers such as Alkem Laboratories Limited, Cipla Limited, Dr. Reddy’s Laboratories Limited, Glenmark Pharmaceuticals Limited, and Lupin Limited. Additionally, it also covers OTC drug retailers that include MedPlus Health Services Limited, Apollo Pharmacies Limited, Emami Frank Ross Limited,1mg, and 91Streets Media Technologies Private Limited (PharmEasy).
Taxonomy
India OTC Drugs Market Ecosystem
India OTC Drugs Market Size, 2018-2022, (In INR Bn)
The India OTC drugs market witnessed substantial expansion, increasing from INR 166.8 billion in 2018 to INR 448.20 billion in 2022, registering a CAGR of 26.00% during the historical period (2018–2022). The market demonstrated consistent year-on-year growth, reaching INR 237.1 billion in 2019, INR 307.5 billion in 2020, and INR 377.8 billion by 2022. Looking ahead, the market is expected to maintain strong growth momentum, driven by increasing inclination toward self-medication, the introduction of new OTC drug formulations, ongoing epidemiological transition, and supportive government initiatives aimed at strengthening healthcare accessibility and pharmaceutical distribution.
India OTC Drugs Market Analysis
China is a major source of imports of active pharmaceutical ingredients (APIs) for India's producers. A significant shortage of raw materials needed for the production of pharmaceuticals resulted from the lockdown in China, particularly in the first quarter of CY 2020. The Drug Regulatory Authority of India stated in April 2020 that there is an acute scarcity of about 57 APIs, including steroids, antibiotics, and essential vitamins.
The shutdown caused the production of API to slow down, which increased the goods' material costs and decreased supply. 2020 saw India halt imports from China, which resulted in a serious scarcity of APIs used in medication formulation. Because of the significant domestic demand for critical over-the-counter drugs, the government placed temporary restrictions on the export of some vital medicines.
The nationwide shutdown posed serious difficulties for the conventional OTC medicine supply chain. Numerous necessary OTC drugs were missing. Many retail pharmacies had stock shortages despite the state government's explicit guidance and support for the transportation of necessary over-the-counter medications.
About 65% of APIs and intermediates that India imports come from China; for APIs like cephalosporins, azithromycin, and penicillin, this import dependency might reach 90%. The scarcity of raw materials has resulted in a notable increase in the cost of medications such as painkiller paracetamol and asthma medication called Montelukast sodium.
India is one of the biggest exporters of Pharmaceuticals globally as it exports medical drugs to 200+ countries. The Indian government has launched several initiatives to further grow the industry such as the Production Linked Incentive Scheme for Bulk Drugs (PLI 1.0), Production Linked Incentive Scheme for Pharmaceuticals (PLI 2.0), Scheme for Strengthening of Pharmaceuticals Industry, and Scheme for Bulk Drug Parks.
Production Linked Incentive Scheme for Bulk Drugs (PLI 1.0)
The Production Linked Incentive (PLI) Scheme aims to encourage the domestic production of active pharmaceutical ingredients (APIs) and important key starting materials (KSMs)/drug intermediates (DIs) in India. The government has approved production-linked incentives worth INR 6,940 crores. Manufacturers who meet the eligibility requirements for 41 out of 53 APIs will get financial incentives for six years of committed investment and sales of the qualifying goods from chosen applicants. Products that are based on fermentation and those that are chemically synthesized will have different rates.
Production Linked Incentive Scheme for Pharmaceuticals (PLI 2.0)
The initiative aims to augment India's manufacturing expertise by expanding investment and output in this field and supporting product diversification towards high-value commodities in the pharmaceutical industry. The makers of pharmaceutical goods registered in India will be categorized according to their Global Manufacturing Revenue (GMR) to fulfil the scheme's objectives and provide broader applicability throughout the pharmaceutical industry.
Scheme for Bulk Drug Parks
The plan to promote bulk drug parks with a financial impact of INR 3,000 crore will finance common infrastructure facilities in three bulk drug parks. The State Government in Bulk Drug Parks will be eligible to receive assistance under the initiative for these facilities. Common amenities including electricity and steam units, distillation plants, solvent recovery plants, common effluent treatment plants, etc., would be present in parks.
Scheme for Strengthening of Pharmaceuticals Industry (2022)
This scheme was launched by the government of India to strengthen the existing pharmaceuticals by launching several initiatives in the industry to further excel rate the growth and development of the Pharmaceuticals and medical devices market. The government has total issued a financial outlay of INR 500 Cr until FY 2025-26 under this scheme.
Inclination towards self-medication
Taking medications that are intended and labelled to address common health issues without a doctor's prescription is known as self-medication. India’s use of social media and the internet is growing and people are increasingly taking self-medicate by consulting information found online. Moreover, the general public has a habit of using over-the-counter (OTC) drugs to suppress symptoms or pain when a disease initially emerges. As per a survey, around 52% of the Indian population indulges in self-medication.
Introduction of new OTC drugs
The OTC drug market will continue to be driven by the launch of new products. In January 2021, Hamdard Laboratories released 12 over-the-counter medications to strengthen immunity. Self-medication in India typically consists of antacids, laxatives, analgesics, vitamins, and allergy relief medicines. This tendency of self-medication is expected to fuel growth in cough and cold remedies as well as gastrointestinal, analgesic, and dermatological treatments. The introduction of updated products and new formulations of several traditional over-the-counter medications is winning over customers' trust with fewer side effects and increased consumption. Examples of these include alcohol, dye-free, honey-containing cough or cold oral liquids, sedative-free cold and cough formulations, raft-forming oral suspensions, oral and topical analgesics, and naturally extracted acne treatment creams and lotions.
Epidemiological transition
India's disease profile has undergone a major change, with a tectonic shift from communicable to non-communicable illnesses. OTC medications have become more popular due to the influenza vaccine's modest effectiveness and the expanding self-care movement. OTC medications are essential for treating mild to moderate influenza symptoms. The majority of these illnesses are preventable and are brought on by a sedentary lifestyle. It is anticipated that increased patient awareness will influence the diagnosis and treatment process, which in turn will drive demand for biologics and preventive medications.
E-commerce Growth
More people have access to a greater variety of over-the-counter (OTC) products thanks to e-commerce platforms, particularly those who live in distant places or have few physical store options. Online purchasing allows customers to buy prescription drugs privately and from the comfort of their homes. This makes it simpler to obtain niche products or certain over-the-counter brands that might not be easily found at neighborhood pharmacies. As per research, a third of urban Indians (32%) prefer online medical consultants and purchase medicines from online health platforms.
In February 2023, an agreement was announced by Dr Reddy's Laboratories to purchase the generic prescription pharmaceutical portfolio of Mayne Pharma in the US. The portfolio consists of 40 approved non-marketed items, 4 pipeline products, 40 commercial products, and many generic drugs for women's health.
In November 2023, India witnessed the release of Dettol Antiseptic Cream by the germ protection brand Dettol. The company intends to build on its current antiseptic liquid and carve out a position in the cuts and wounds sector with the launch of a new antiseptic cream. For small cuts and wounds, this over-the-counter (OTC) medication is the first line of defenses against infection.
In September 2023, Ranitidine, well known by its brand name Zantac, is no longer included on the Indian government's most current National List of Essential Medicines 2022. Since 2019 when the US Food and Drug Administration (FDA) found ingredients that may cause cancer in ranitidine, the drug has been put under investigation.
India OTC Drugs Industry Segmentation
India OTC Drugs Industry Segmentation by Product
In 2022, vitamins and minerals accounted for the largest market share (36.84%) within the over-the-counter (OTC) medications segment. The cough and cold medicines category is expected to witness accelerated growth, primarily driven by recent and significant climatic changes contributing to seasonal illnesses. Conversely, the overall market share of hand sanitizers, which experienced exceptionally high demand during the pandemic period, is anticipated to decline as consumption patterns normalize. Common OTC medications such as ibuprofen and paracetamol are readily available to patients without a doctor’s prescription, enhancing accessibility and convenience. However, the widespread availability of OTC drugs also presents certain risks, including the potential for drug addiction and the development of drug resistance. Antimicrobial resistance (AMR) is increasingly recognized as a major public health threat, with rising antibiotic resistance making the treatment of common infections more challenging. Self-medication further compounds the issue, as individuals may misuse or overconsume certain medications despite being aware of associated risks. Painkillers, cough syrups, and analgesics are among the OTC products that carry a higher potential for dependency and misuse.
India OTC Drugs Industry Segmentation by Distribution Channel
In 2022, retail pharmacies dominated the India OTC drugs market, accounting for 73% of the total market share, followed by hospital pharmacies with an 18% share. The strong position of retail pharmacies is driven by the extensive range of OTC medications available across categories, including vitamins, digestive aids, pain relievers, and cough syrups. Additionally, their widespread geographic presence enhances accessibility, offering consumers convenience along with professional guidance from pharmacists. Other distribution channels—including supermarkets, convenience stores, online pharmacies, general stores, and Kirana shops—collectively accounted for 9% of the total market share. These channels primarily focus on high-demand, impulse-driven OTC products such as pain relievers, antacids, and allergy medications, catering to quick and convenient consumer purchases.
India OTC Drugs Industry Future Outlook
In 2029 Indian OTC Drugs market size is expected to reach INR 1547.08 billion compared to INR 532.39 billion in 2023, During the period (2022-2029). The market is expected to grow by 19.10% between 2023 to 2029. The OTC Drugs market is expected to maintain constant growth during the forecasted period as the market is estimated to reach INR 633.59 billion in 2024 followed by INR 755.46 billion in 2025 and INR 902.46 billion in 2026. The market will reach INR 1080.08 billion in 2027 followed by INR 1296.66 billion in 2028.
Company Profiles of Major OTC Drug Manufacturers
Company Name
Establishment year
Description
Alkem Laboratories Limited
1973
Alkem Laboratories Limited is an Indian multinational pharmaceutical company. The company manufactures and sells pharmaceutical generics, formulations and nutraceuticals in India and globally. Alkem has 21 manufacturing facilities: 19 in India and 2 in the US. Alkem acquired the “Clindac-A” brand in India from Galderma S.A.
Cipla Limited
1935
Cipla Limited primarily develops medicines to treat respiratory, cardiovascular disease, arthritis, diabetes, weight control and depression, and other medical conditions. Cipla Limited sells active pharmaceutical ingredients to other manufacturers as well as pharmaceutical and personal care products, including escitalopram oxalate (anti-depressant), lamivudine, and fluticasone propionate.
Dr. Reddy’s Laboratories Limited
1984
Dr. Reddy’s Laboratories Limited is one of the leading pharmaceutical companies in India with its global footprints in major developing countries. The company was the first to manufacture active ingredients (APIs) for Ibuprofen and then Methyldopa, the anti-hypertensive drug previously unavailable in India.
India OTC Drug Market Macroeconomic Indicators
India's population was valued at 1437 million in 2023, increasing by 30 million from 1407 million in 2022. By the end of 2025, India's population is predicted to reach 1500 million.
In the year 2020, The population between the 25-49 age group is the largest age group (36.40%) in India followed by 0-14 (26.40%), 50+ (19.40%), and 15-24 (18%).
In 2023, India's GDP was valued at USD 3732 billion compared to USD 2710 billion in 2018. The country’s GDP is expected to reach 5000 billion by the end of 2025.
As of 2023, India comprises of majority of the middle-class population which is 57% of the total population of India. After the middle class comes the lower-class category which comprises 33% of the total population of India. The remaining 10% of the population belongs to a high-income class.
In 2023, India’s Inflation rate stands at 5.66 % an increase of approximately 2.5% from the 2018 inflation rate of 3.94%. During the COVID-19 pandemic in 2020, the inflation rate in India surged unexpectedly to 6.62% from 3.72% in 2019.
Frequent Asked Questions
Find quick answers to common questions about the India OTC Market
In 2023, the market for over the counter (OTC) drugs in India was valued at INR 532.39 billion.
Alkem Laboratories Limited, Cipla Limited, Dr Reddy’s Laboratories Limited, Glenmark Pharmaceuticals Limited, and Lupin Limited are some of the prominent companies operating in the India OTC Drugs market.
The India OTC Drugs Market is expected to reach a market size of USD 1547.08 billion growing at a CAGR of 19.10% between 2023-2028.
Energy Efficiency and Inverter Technology, Smart and Connected ACs, Air Purification, and Green Initiatives are some of the key trends in the India OTC Drugs market.
Inclination towards self-medication, Introduction of new OTC drugs, Epidemiological transition, and E-commerce Growth are the major growth drivers of the India OTC Drugs market.
Vitamins and minerals product type are dominating the India OTC Drugs market followed by Cold and Cough Remedies, and others.
