India’s OTC medicines market set to double to Rs.98,000 crore by 2030 says EY‑Parthenon report

OTC

• India's OTC medicines market set to double to Rs.98,000 crore by 2030
• Digital commerce and rising health awareness drive OTC market growth
• Regulatory framework for OTC drugs in India is under development for 2025

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India’s over-the-counter (OTC) medicines market is heading into a decade of accelerated expansion as consumers take greater control of everyday health decisions and pharma companies pivot towards consumer‑centric models.

According to a new EY‑Parthenon report, India’s OTC market—currently valued at Rs.47,000 crore, is set to double to Rs.98,000 crore by 2030, growing at a 13 percent compound annual rate, propelled by rising health awareness, digital adoption and changing attitudes towards self‑medication.

The report, 'From Prescription to Consumerization', reflects one of the most detailed examinations of India’s evolving self‑care ecosystem. Based on market analysis and a primary survey of 624 Indian consumers, EY‑Parthenon finds that Indians are increasingly proactive about health—though this varies sharply by age.

About 55 percent of adults aged 18–24 still seek check‑ups only when symptoms occur, but the proportion of proactive check‑ups rises to 49 percent among consumers aged 35–44, indicating a decisive shift toward preventive self‑care as individuals age.

Despite the country’s population scale, India remains one of the world’s most underpenetrated OTC markets. Per‑capita OTC spending stands at $5–$6, compared to $70–$130 in developed markets such as the United States, Western Europe and Japan. This huge gap represents untapped commercial white space.

As the report notes, India’s OTC market is supported by multiple structural tailwinds—including swelling middle‑class affluence, rising out‑of‑pocket healthcare spending and the explosion of digital commerce—that together are “reshaping  demand.”

EY-Parthenon leaders say the shift is redefining pharma’s strategic priorities.

“OTC in India is fast becoming a strategic growth pillar for pharma,” said Suresh Subramanian, National Lifesciences Leader, EY‑Parthenon India. He added that consumers are now “more proactive, informed, and consumer‑driven”, and that while doctors remain central to first‑time purchases, repeat buying is increasingly shaped by usage experience, brand trust and category‑specific channel preferences.

Sumeet Chandna, Partner – Health Sciences, underscores the strategic mindset shift required for success -“this category needs a change in investment mindset… from expert‑led to consumer‑led models,” emphasizing the need to cultivate consumer obsession and adopt a "percentage‑to‑absolute‑margin P&L mindset” to scale brands profitably in a competitive self‑care marketplace.

The survey shows channel preferences sharply fragmented by category. For trust‑intensive categories such as pain relief, 80 percent of consumers prefer to purchase from pharmacists, and in chronic‑care categories, 67 percent still rely on chemists. Meanwhile, wellness products—more habitual and low‑risk—lean heavily on e‑commerce, with 56% of buyers preferring online channels. When buying online, consumers prioritise value for money (71 percent), convenience (63 percent), and brand reassurance via ratings and reviews.

Digital commerce is already a major growth engine, especially for categories such as nutrition, dermatology and preventive wellness. EY notes that e‑commerce and q‑commerce platforms are collapsing discovery, education and purchase into a single funnel—enabling fast‑moving consumer health brands and digital‑first entrants like Fast&Up, Kapiva and The Derma Co. to scale rapidly. These platforms provide transparency through user reviews, label details and algorithmic recommendations that reduce the friction traditionally associated with OTC buying.

The report also showcases successful Rx‑to‑OTC transitions in India—Pediasure, Volini, Candid and Shelcal among them. These brands leveraged dual‑channel strategies, modern dosage formats, emotionally resonant communication and expanded distribution to move beyond prescriber‑led demand generation. Pediasure, for instance, balanced pediatrician engagement with large‑scale digital outreach such as the “Grow Right” campaign and partnerships with parenting platforms. Volini, meanwhile, differentiated itself from traditional balms with formats like sprays and roll‑ons aligned with consumer convenience.

However, this rapid consumerization is unfolding against the backdrop of a significant regulatory gap. Unlike the US, EU and Japan, India does not yet have a clearly defined OTC category. Classification continues to rely on exclusion from prescription schedules under the Drugs & Cosmetics Act, creating ambiguity around claims, labelling and promotional norms. A draft OTC framework is currently under development, with the Drugs Technical Advisory Board in 2025 approving recommendations for a new Schedule to formally define OTC drugs, restrict pack sizes and permit responsible advertising.

Ultimately, EY‑Parthenon concludes that India’s OTC sector is at a strategic turning point. Companies that deepen consumer insight, strengthen omnichannel distribution, innovate formats and invest early in brand‑building will lead the next phase of self‑care growth. As the press release puts it, the consumerization of healthcare is “reshaping demand,” and those who realign quickly—from Rx‑centric to consumer‑centric—stand to capture the most value in India’s next decade of health autonomy.