WHAT THE DR ORDERED. Medicine buying is largely centred around prescriptions in India | Photo Credit: Pradeep Gaur

India’s over-the-counter (OTC) drugs industry is at a rare intersection: consumer empowerment rising from the ground up, and regulatory formalisation building from the top down. As the country moves towards its first structured OTC framework and online channels surge in influence, companies that treat OTC as a true consumer business — and not a diluted extension of prescription (Rx) — will define the next wave of health sector value creation.

India’s OTC market, valued at around ₹47,000 crore, is projected to nearly double by 2030, at about  13 per cent CAGR. Yet, the bigger story lies beneath the numbers. India remains significantly under-penetrated, with per capita OTC spend far below global benchmarks. This isn’t a demand-side deficit — it’s an ecosystem long designed around prescriptions rather than proactive self-care. Shifting this trajectory requires a fundamental mindset change across the value chain.

Online push

Consumer behaviour is evolving. Indians are becoming more proactive and wellness-oriented, but confidence is still uneven. An EY consumer survey shows that experts still drive first-time purchases, while usage experience and brand trust determine repeat decisions. In trust-intensive categories like pain relief, consumers rely heavily on pharmacists. In contrast, wellness categories skew towards online channels, where convenience and perceived value drive purchase decision and repeat use. This category-specific channel preference underscores a simple truth: consumers don’t shop by molecule, they shop by need, context, and trust.

Digital platforms are also influencing how OTC brands are discovered, evaluated, and validated. Nutrition, dermatology, and broader wellness categories are increasingly shaped by digital commerce, with reviews, FAQs (frequently asked questions) and product pages now functioning as high-impact media assets. Leading companies are using digital touchpoints to translate medical credibility into simple, consumer-friendly education — clarifying relevance, safety, dosage, and usage cues. Digital is no longer only a distribution channel — it has also become a confidence-building engine.

A defining catalyst for the market’s next phase may come from regulation. A clearer OTC framework — covering classification, claims, labelling, and advertising norms — is under development. Once implemented, it will reduce ambiguity, invite long-term investment, and enable brands to communicate more confidently and responsibly. Regulatory clarity will also help distinguish credible OTC products from loosely positioned wellness offerings, strengthening consumer trust and broadening the industry’s appetite for innovation.

OTC playbook

For companies, the shift from Rx to OTC is attractive: it extends brand lifecycles, creates annuity-like revenues, and delivers consumer-health valuation multiples. But the real challenge is organisational: moving from prescriber push to consumer pull requires a fundamental shift in the operating model, not just channel change. The OTC playbook demands benefit-led communication, intuitive formats, trial-friendly packs, and packaging that simplifies choice. It also means planning for investments in brand building, omnichannel delivery, and digital capabilities — supported by cross-functional teams, like those in consumer companies.

OTC’s next wave of growth will extend well beyond traditional analgesics or cold-and-cough categories. Weight management, women’s health, sleep, geriatric care, and sexual wellness are emerging as high-frequency, under-branded opportunities. These platforms reward science-backed claims, relatable communication, and consistent experience across offline and online touchpoints.

Ultimately, India’s OTC decade will be defined not just by wider availability but also brands that make self-care safe, simple, and everyday — earning trust once through experts, and every time thereafter through the consumer. And in that shift lies India’s next health revolution.

(The writer is Partner-LifeSciences, EY-Parthenon India. Views are personal)

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Published on February 9, 2026