The over the counter (OTC) pharmaceutical market in India is undergoing a significant transformation, caused by a surge in self-medication practices among consumers. This shift is reshaping the healthcare landscape, offering both opportunities and challenges. In this blog, we delve into the factors driving this trend, its implications, and the outlook for India's OTC pharmaceutical market.

The Rise of Self-Medication in India

The World Health Organization (WHO) defines self-medication as the use of drugs to treat self-diagnosed conditions or symptoms, or the occasional or ongoing use of prescribed medications for chronic or recurring illnesses or symptoms. Self-medication refers to the practice of individuals diagnosing and treating their own health conditions without professional supervision. The rising practice of self-medication is driven by multiple factors, including a growing emphasis on self-care, concern for ill family members, limited access to healthcare services and medications, financial and time constraints, widespread advertising, and the easy availability of drugs outside traditional pharmacies, economic considerations, increased health awareness, etc.

Growing Emphasis on Self-Care

A heightened awareness of health and wellness, particularly after the COVID-19 pandemic, has led more Indians to take a proactive approach to managing their health. People increasingly turn to OTC medications, supplements, and traditional remedies to handle minor ailments, boost immunity, and prevent illness. This self-reliant approach is especially prevalent among urban, educated populations who prefer convenient, quick solutions.

Concern for Ill Family Members

In a society where family care plays a central role, individuals often medicate sick family members based on previous experiences or commonly shared advice. This behavior, though rooted in empathy, often leads to the unsupervised use of medications, especially for common issues like colds, fevers, or pain. However, this well-intentioned practice frequently results in the unsupervised and sometimes inappropriate use of medications. People tend to rely on easily accessible over-the-counter drugs, leftover prescriptions, or traditional home remedies to treat common ailments such as colds, fevers, headaches, and general pain.

Limited Access to Healthcare Services and Medicines

Many rural and semi-urban areas in India suffer from a shortage of qualified medical professionals and healthcare facilities. Long travel distances, overcrowded government hospitals, and inconsistent medicine availability discourage formal medical consultations. As a result, self-medication becomes a practical alternative for immediate relief.

Financial and Time Constraints

For many Indians, especially daily wage workers or those without health insurance, visiting a doctor can be both time-consuming and expensive. Consultation fees, diagnostic tests, and travel costs add up quickly. Self-medication offers a low-cost, time-saving option, particularly for recurring or familiar ailments. The easy access to over-the-counter medications, commonly found at convenient places such as pharmacies and grocery stores, makes self-medication readily available.

Widespread Advertising and Digital Influence

Pharmaceutical advertising, both on traditional media and digital platforms, plays a key role in shaping public perceptions. Aggressive marketing of OTC drugs, wellness products, and health supplements often persuades consumers to purchase and use these products without medical advice. Social media influencers and online reviews further influence buying decisions, sometimes blurring the line between informed choice and risky behavior.

Easy Availability of Drugs Outside Pharmacies

OTC drugs are increasingly accessible not just through licensed pharmacies but also in general stores, supermarkets, and online platforms. The rise of e-pharmacies has made it easier than ever to purchase medications without prescriptions. This widespread availability contributes to the normalization of self-medication, often without proper guidance on dosage or potential side effects.

Increased Health Awareness: With the proliferation of health information through digital platforms, consumers are more informed about common ailments and their treatments. This knowledge empowers them to manage minor health issues independently.

Accessibility and Convenience: The expansion of retail pharmacies and e-pharmacy platforms has made OTC medications more accessible. Consumers can easily purchase medicines for common conditions like headaches, colds, and digestive issues without a prescription.

Economic Considerations: OTC medications are often more affordable than prescription drugs, making them an attractive option for cost-conscious consumers.

Cultural Factors: In many Indian households, there is a tradition of using home remedies and over-the-counter medications for minor ailments, a practice that continues to influence consumer behavior.

Market Dynamics and Growth

The Indian OTC pharmaceutical market has experienced robust growth in recent years. According to TechSci Research the India Over The Counter Drugs Market was valued at USD 5677.32 million in 2024 and is anticipated to reach USD 8672.40 million by 2030, with a CAGR of 7.13% during 2025-2030.

This Growth is Driven By:

Expanding Product Portfolio: Pharmaceutical companies are increasingly focusing on developing OTC products, including pain relievers, digestive aids, and dermatological treatments, to cater to the growing demand. Moreover, brands are innovating within these categories by introducing new formulations, flavored or easy-to-consume variants, and combination therapies that enhance user experience and treatment effectiveness. Products such as topical analgesics, effervescent tablets, herbal supplements, and medicated skin creams are becoming increasingly popular among urban and semi-urban populations.

Digital Transformation: E-pharmacies and online platforms have revolutionized the distribution of OTC drugs, providing consumers with the convenience of home delivery and access to a wide range of products. Consumers can conveniently purchase medications from their homes, eliminating the need to visit physical pharmacies and saving both time and effort. E-pharmacies also extend access to remote regions and individuals with mobility challenges, offering medications that may not be readily available locally. In addition, online platforms provide a wider range of OTC drugs, with multiple brands and formulations, far surpassing the limited stock typically found in traditional pharmacies.

Government Initiatives: Programs like the Pradhan Mantri Bharatiya Janaushadhi Pariyojana aim to provide quality generic medicines at affordable prices, further promoting self-medication practices among the public. Through this initiative, affordable medicines are made available to the public via designated outlets known as Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs). These Kendras provide generic medicines at substantially lower prices than branded options, without compromising on quality or effectiveness.

Regulatory Landscape and Challenges

Despite the market's growth, the regulatory framework for OTC drugs in India remains underdeveloped. The Drugs and Cosmetics Act of 1940 does not clearly define OTC drugs, leading to ambiguities in classification and regulation. In countries like India, where the doctor-to-patient ratio remains critically low, establishing a distinct category for over the counter (OTC) drugs can significantly enhance access to safe and reliable medications, while also bringing greater clarity to the regulatory framework governing their use. However, this objective must be carefully balanced with the imperative to implement robust safety measures, ensuring that increased self-medication does not compromise patient health or lead to potential misuse.

Key Challenges Include:

Lack of Clear Classification: One of the major challenges in the growth of the over the counter (OTC) drug market in India is the lack of a formal and universally accepted classification system for these products. Unlike in many developed countries, where OTC drugs are clearly distinguished from prescription-only medications through well-defined regulatory categories, India lacks a comprehensive framework to separate and govern OTC products explicitly.

Risk of misdiagnosis: Multiple sources, such as the internet and friends, promote self-management of health, increasing the likelihood of uninformed medication decisions. Self-treatment frequently begins with self-diagnosis, which poses a high risk of misdiagnosis. Even when the diagnosis is correct, individuals may not have the necessary expertise to choose the appropriate treatment, potentially worsening their condition. Additionally, a lack of awareness about medication side effects or contraindications can result in harmful consequences.

Quality Control Issues: The absence of stringent guidelines can lead to the proliferation of substandard or counterfeit medicines in the market. The WHO defines 'counterfeit' drugs as medicines that are deliberately and fraudulently misrepresented in terms of their identity and/or origin. It also explains that both branded and generic products can be counterfeited, and that counterfeit medicines may contain the correct ingredients, incorrect ingredients, no active ingredients, insufficient or excessive amounts of active ingredients, or fake packaging. Governments, drug manufacturers, charities, and healthcare providers must work together to ensure that only medications of acceptable quality are delivered to patients.

Misuse and Overuse: The easy availability of over the counter (OTC) drugs without proper medical guidance can lead to significant issues such as misuse and overuse. When individuals self-medicate without fully understanding the appropriate dosages, indications, or duration of use, they risk taking these medications incorrectly. This improper use not only reduces the effectiveness of the treatment but also increases the chances of side effects and adverse reactions. In particular, the misuse and overuse of antibiotics are especially concerning, as they contribute to the growing problem of antibiotic resistance. This resistance makes bacterial infections harder to treat, leading to longer illness durations, increased medical costs, and a higher risk of complications. Therefore, unrestricted access to OTC medications without adequate education and oversight poses a serious public health challenge.

To address these issues, experts advocate for the establishment of a dedicated chapter within the Drugs Rules, 1945, to formally define and regulate OTC drugs, ensuring their safe and effective use. In 2022, India introduced a new OTC policy permitting the sale of certain drugs without a prescription. This initiative aimed to lower treatment costs and encouraged self-care while maintaining safety standards. However, unlike countries such as the US, China, and UK, India currently lacks a comprehensive policy for the distribution, marketing, and use of OTC medications.

Consumer Behavior and Preferences

Indian consumers are increasingly seeking convenience and affordability in their healthcare choices. The preference for OTC medications is evident in the growing sales of products like:

Pain Relievers: Commonly used for headaches, body aches, and menstrual discomfort. Two types of OTC pain medicines are usually recommended for mild to moderate pain. These include Acetaminophen (Tylenol) and Nonsteroidal anti-inflammatory drugs (NSAIDs).

Digestive Aids: Medications for indigestion, acidity, and constipation. These may include over-the-counter products such as antacids, H2 blockers, and laxatives, along with prescription medications like proton pump inhibitors (PPIs).

Dermatological Products: Creams and ointments for skin conditions. Creams are usually oil-and-water emulsions, whereas ointments are mainly oil-based, which makes them more occlusive and ideal for treating very dry skin. Different types of dermatological creams and ointments include emollients, corticosteroids, antifungals, antibiotics, and combination products.

Nutritional Supplements: Nutritional supplements, including vitamins, minerals, and other dietary ingredients are widely available over the counter (OTC) without a prescription. These supplements are often used to support overall health and help fulfill daily nutrient needs. Although they are generally considered safe, it is important to remain aware of potential risks related to their use.

The demand for herbal and Ayurvedic OTC products is also on the rise, reflecting a blend of traditional practices with modern healthcare solutions.

The Role of E-Pharmacies

E-pharmacies have played a pivotal role in expanding access to OTC medications, especially in remote areas.

MedPlus

Founded in 2006, MedPlus is one of India’s leading pharmacy chains, operating a robust hybrid model that combines a strong offline retail presence with a growing online platform. With over 3,000 brick-and-mortar stores across the country, MedPlus has leveraged its distribution network to offer online ordering, home delivery, and click-and-collect services. The platform offers a broad range of prescription medications, over-the-counter products, health supplements, and personal care essentials.

MedPlus also offers loyalty programs, health record tracking, and discounts, making it a preferred choice for value-conscious customers. Its omnichannel presence enhances last-mile delivery capabilities, especially in Tier 2 and Tier 3 cities.

Tata 1mg

Tata 1mg has become a trusted name in digital healthcare. It was originally launched as 1mg and was later acquired by Tata Digital in 2021. It is mainly valued for its commitment to quality and authenticity. Its integration with the Tata Group has strengthened logistics, service reliability, and consumer trust, giving it a competitive edge in the e-healthcare space.

PharmEasy

Founded in 2015, PharmEasy has rapidly grown into one of India's largest online pharmacy platforms. Offering services in over 1,000 cities, it allows consumers to upload prescriptions, order medicines, schedule diagnostic tests, and consult with doctors—all through a single digital platform.

PharmEasy focuses on affordability and accessibility, frequently offering discounts and subscription models that provide users with additional savings and benefits. In 2021, PharmEasy acquired Thyrocare, one of India’s leading diagnostic labs, further expanding its healthcare ecosystem and vertical integration.

Platforms like MedPlus, Tata 1mg, and PharmEasy offer:

Home Delivery Services: Ensuring timely access to medications.

Wide Product Range: Providing a variety of OTC products from different brands.

Consultation Services: Offering online consultations for minor health issues.

The convenience and accessibility provided by e-pharmacies have contributed significantly to the growth of the OTC market in India.

Future Outlook

The future of India's OTC pharmaceutical market appears promising, with several factors poised to drive further growth:

Regulatory Reforms: Ongoing and upcoming regulatory reforms aimed at establishing clear, standardized guidelines for the production, distribution, and sale of OTC drugs will play a crucial role in enhancing consumer safety. These reforms will help build greater trust and credibility within the industry by ensuring that products meet stringent quality standards and that consumers have access to reliable and effective medications. Stronger regulation will also help curb the circulation of counterfeit and substandard products, thereby protecting public health.

Technological Advancements: Rapid advancements in digital health technologies, including mobile health apps, telemedicine platforms, and e-pharmacies, are set to transform the way consumers access and use OTC medicines. These technologies will enable easier access to medical information, virtual consultations, and remote monitoring, integrating self-medication more seamlessly into mainstream healthcare. The convenience and accessibility offered by these innovations will encourage responsible self-care practices, especially in areas where healthcare resources are limited.

Consumer Education: Increasing efforts by government bodies, healthcare providers, and industry stakeholders to raise awareness about the safe and responsible use of OTC medications will be pivotal. Educational campaigns, both online and offline, will empower consumers to make informed decisions about their health, understand potential risks, and recognize when professional medical advice is necessary. Enhanced consumer knowledge will reduce the risk of misuse and adverse effects, contributing to better overall health outcomes.

Market Expansion: The continued growth of infrastructure and rising healthcare awareness in rural and semi-urban regions will expand the reach of OTC pharmaceutical products beyond urban centers. Improved transportation, better retail networks, and increased health literacy will open up new markets, allowing a larger segment of the population to benefit from accessible and affordable self-care options. This expansion will not only increase sales volumes but also promote equitable access to healthcare resources across diverse demographics.

Conclusion: