India’s healthcare landscape is experiencing a structural transformation as consumers increasingly take control of everyday health decisions, according to a recent EY-Parthenon India report titled “From Prescription to Consumerization: Unlocking Value from OTC Brands in India.” The study, based on market analysis and a primary survey of 624 respondents, explores how Indians discover, evaluate, and purchase Over-The-Counter (OTC) products. Globally, the OTC market is expected to exceed US$500 billion by 2030, while India’s market, valued at approximately ₹47,000 crore ($5.6 billion) in 2024, is projected to reach ₹98,000 crore by 2030 at a 13% CAGR. Despite its large population, India remains under-penetrated, with per capita OTC spend less than one-tenth of the global average. Unlocking this potential will require pharmaceutical companies to rethink prescription-led models, redesign portfolios, strengthen consumer-focused branding, and operate seamlessly across retail and digital platforms, while regulatory reforms catch up with industry needs.
Suresh Subramanian, National Lifesciences Leader at EY-Parthenon India, highlighted that OTC products are becoming a strategic growth pillar for pharma, driven by rising out-of-pocket healthcare spending, digital commerce, and a consumer-led wellness economy. The survey indicates a shift toward proactive, informed health decisions, with doctors still influencing first-time purchases but repeat purchases increasingly guided by usage experience, brand trust, and channel preferences. Subramanian emphasized the need for clear regulatory frameworks on product classification, claims, labeling, and consumer communication to support responsible self-medication and sustainable industry investment.
Sumeet Chandna, Partner – Health Sciences at EY-Parthenon India, added that India’s growing affluent population presents a substantial opportunity for self-care-driven OTC brands. He noted that success in this segment requires a shift from expert-led to consumer-led investment models, a focus on absolute margins, and a culture of consumer-centricity. Companies moving from prescription to OTC must expand their consumer base while maintaining trust with medical influencers, supported by disciplined portfolio choices, strong multi-channel execution, effective retail presence, and integrated digital strategies.
The report underscores that consumerization is driving a structural reset in healthcare. Survey findings show that Indian consumers are increasingly proactive about health, with preventive check-ups rising sharply with age—from 26% among 18–24-year-olds to 49% among 35–44-year-olds. Channel preferences remain category-specific: 80% of consumers buy trust-intensive products like pain relief from pharmacists, while 56% prefer purchasing wellness products online. Repeat purchases are driven by usage experience, brand trust, value for money, and convenience.
Digital commerce is becoming a major growth engine, particularly for nutrition, wellness, and dermatology products, with success requiring content that addresses consumer questions, platform-specific fit, performance marketing, and intelligent pricing and promotions. The report identifies six critical enablers for successful OTC brands: benefit-led consumer communication, trial SKUs and value packs, trust-enhancing packaging, dual-brand strategies, innovative product formats, and line extensions that maintain relevance across life stages.
Growth is expected across traditional and emerging OTC categories. Vitamins, minerals, and supplements are projected to grow at 13%, weight management at 19%, and women’s health products are expanding across hormonal, fertility, and menopause-related categories. New areas such as men’s sexual wellness, sleep aids, geriatric care, and oral health are also gaining traction, fueled by stigma reduction, digital discovery, and science-backed formulations.
Regulatory clarity remains a key enabler for market expansion. Current OTC definitions are largely based on exclusion from prescription schedules under the Drugs and Cosmetics Act. Progress toward a standalone OTC framework, including the establishment of a dedicated subcommittee, signals positive change. A clear regulatory regime will strengthen patient safety, standardize claims and labeling, support responsible self-medication, and attract long-term investment, aligning India’s OTC market with global best practices.
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