India’s OTC drugs market set to hit ₹98,000 Crore by 2030: EY Parthenon Report

India’s healthcare landscape is undergoing a -structural shift as consumers increasingly take charge of everyday health decisions, revealed the latest report by EY-Parthenon India. Titled “From Prescription to Consumerization: Unlocking Value from OTC Brands in India”, the report captures market analysis and a primary consumer survey of 624 respondents, of how Indians discover, evaluate, and purchase Over-The-Counter (OTC) products.

Globally, the OTC market is projected to surpass US$500 billion by 2030. The report estimates that India’s OTC market, valued at approximately INR 47,000 crore (approx. US$5.6 billion) in 2024, is projected to grow to INR 98,000 crore at around 13% CAGR through 2030. Despite having one of the world’s largest populations, India remains significantly under-penetrated, with per capita OTC spend less than 1/10th of the global average. Unlocking this potential, the report emphasizes, will require pharma companies to rethink Rx-led models, redesign portfolios and P&Ls, build consumer- centred brand capabilities, and execute seamlessly across retail/digital platforms, while regulatory reforms catchup to patient and industry needs.

Commenting on the report insights, Suresh Subramanian, National Lifesciences Leader, EY Parthenon India said, “OTC in India is fast becoming a strategic growth pillar for pharma. Structural tailwinds such as rising out-of-pocket healthcare spend, digital commerce, and a consumer-led wellness economy are reshaping demand. Our survey shows a clear behavioural shift toward more proactive, informed, and consumer-driven health decisions. While doctors remain central to first-time adoption, repeat purchases are increasingly shaped by usage experience, brand trust, and category-specific channel preferences. There is also need for clear regulatory frameworks around product classification, claims, labelling, and consumer communication to enable responsible self-medication and support long-term industry investment.”

Adding to it, Sumeet Chandna, Partner – Health sciences, EY Parthenon India, said, “As India’s affluent population rises, there is a huge opportunity for self-care driven OTC brands to grow. This category needs a change in investment mindset: a) from expert led to consumer led investment models b) percentage margin to absolute margin P&L mindset c) cultivate consumer obsession and needs discovery mindset. Winning in this environment will require disciplined portfolio choices, strong multi-channel go-to-market execution, an effective retail field force and seamless digital integration. For companies moving from Rx to OTC, the challenge lies in expanding to a broader consumer base while continuing to protect trust and equity with medical influencers.” 

Consumerisation drives a structural reset in healthcare

The survey findings reveal that Indian consumers are becoming more proactive about their health. While younger consumers remain largely reactive (55% of those aged 18–24 report getting health checkups only when health issues arise), preventive behaviour increases sharply with age. The share of consumers undergoing occasional health check-ups rises from 26% in the 18–24 age group to 39% among 25–34-year-olds, 49% among 35–44-year-olds, pointing to a steady transition from episodic care to ongoing health management.

Further, channel preference in India is highly category-specific. For trust-intensive categories such as pain removal, 80% of consumers prefer purchasing from pharmacists, while only 20% opt for online channels. Similarly, in chronic health categories, 67% continue to rely on pharmacists. In contrast, 56% of consumers prefer buying wellness products online, reflecting comfort with digital discovery and repeat usage in these segments. When consumers do buy OTC products online, 71% cite ‘value for money’ as key driver and 63% look for convenience. 

Across categories, 80%+ of consumers rely on expert or healthcare professional advice for first time purchase of OTC products, however, for repeat purchases, usage experience and brand trust also start playing a key role.

Digital commerce becomes a growth engine

The report spotlights digital’s rising share—with categories such as nutrition & wellbeing and dermatology leaning heavily on e-commerce, e-pharmacies, and q-commerce—and lays out what it takes to win online: content that answers consumer questions, platform category fit, performance marketing and intelligent pricing/promo operations.

Successful OTC brands, the report finds, are built on six critical enablers:

1. Consumer communication that is benefit-led and emotionally resonant
2. Trial SKUs and value packs to drive adoption and repeat usage
3. Packaging that enhances trust, visibility, and ease of use at point of sale
4. Dual-brand or multivariant strategies to manage Rx–OTC channel conflict
5. Innovative, consumer-friendly formats such as gummies, sprays, effervescents, and ready-to-drink options
6. Line extensions that expand relevance across life stages and use cases

OTC growth expanding beyond traditional categories

• Vitamins, minerals and supplements (VMS) expected to grow at ~13%, driven by daily supplementation habits
• Weight management projected to grow at ~19%, supported by rising obesity awareness and digital health ecosystems
• Women’s health, led by growing demand across hormonal, fertility and menopause related supplements 
• New categories like men’s sexual wellness, sleep, geriatric care, oral health driven by stigma reduction, digital discovery and science-led formulations

Regulatory clarity as a growth catalyst

The report highlights regulatory ambiguity as one of the key constraints to OTC expansion in India, with products currently defined largely by exclusion from prescription schedules under the Drugs and Cosmetics Act. Recent moves, including the creation of a dedicated OTC subcommittee and progress toward a standalone framework, signal positive change. A clear, predictable regulatory regime will be essential to strengthen patient safety, standardize claims and labelling, enable responsible self-medication and support long-term industry investment, much like the mature OTC markets.