OTC DRUG

MARKET

FUTURE GROWTH DRIVER FOR THE

INDIAN PHARMACEUTICALS MARKET
Shubhankar Mazumdar

CONTENTS

Snapshot of OTC drug market in India

Current state of Indian OTC drug market

Visions for OTC Drug Market in India

Frontiers for OTC Drug Market in India

Growth Drivers for OTC Drug Market in India

Recommendations for OTC Drug Marketers

List of Data sources and References

SNAPSHOT OF OTC DRUG MARKET IN

INDIA

Indian Pharma Market touched sales of 100,896 crore, in June

2016

Over-the-Counter (OTC) drug market in India crossed sales of

15,000 crore.
India is ranked among Top-10 Global
OTC Drug market growing by
10.7%.
Increasing
penetration
of
brands,
especially
in
rural
markets, fuelled the growth of
OTC drug market
Data Source:
Business Monitor International, Aranca Research, 2015
AIOCDAWACS PharmaTrac Overview June 2016

CURRENT STATE OF INDIAN OTC DRUG

MARKET

Around 20% of pharmacists turnover

in India, are generated through OTC
Drug sales.

Indian OTC drugs market is

growing at a rate of 12% a year.

Around 52% Indian self-medicates for

minor illness.

Data Source:
OPPI and IMS Consulting Group (IMSCG) 2015
PriceWaterhouseCoopers. India-Prescription for Growth, July 2015

CURRENT STATE OF INDIAN OTC DRUG

MARKET

Data Source:
OPPI and IMS Consulting Group (IMSCG) 2015
OTC-the final frontier by Nicholas Hall, Sorento Communications and IMRS, 2006

CURRENT STATE OF INDIAN OTC DRUG

MARKET

Data Source:
GLOBAL RESEARCH ANALYSIS, 2013

CURRENT STATE OF INDIAN OTC DRUG

MARKET

Data Source:
GLOBAL RESEARCH ANALYSIS, 2013

CURRENT STATE OF INDIAN OTC DRUG

MARKET

Data Source:
GLOBAL RESEARCH ANALYSIS, 2013

CURRENT STATE OF INDIAN OTC DRUG

MARKET

Data Source:
OPPI and IMS Consulting Group (IMSCG) 2015

VISIONS FOR OTC DRUG MARKET IN INDIA

Data Source:
Registrar General &CensusCommissioner,India(ORGI), May 2016
Noverties, Arogya Pariwar: Health for the poor (April 2010)

VISIONS FOR OTC DRUG MARKET IN INDIA

VISIONS FOR OTC DRUG MARKET IN INDIA

Data Source:
OPPI and IMS Consulting Group (IMSCG) 2015

VISIONS FOR OTC DRUG MARKET IN INDIA

In terms of the current market
growth rate, Sun Care looks the
most encouraging segment.
This is followed Digestive remedies,
as this segment has an immense
opportunity due to benefit of the
rich Indian cuisine and the after
effects of it.
Looking from the market value of
Analgesics, it is the category that
already has a large consumer base
to cater to and can hence
accommodate a large number of
players in the same segment.

Data Source:
OPPI Organization of Pharmaceutical producers of India, 46th Annual Report 2014-15

FRONTIERS FOR OTC DRUG MARKET IN INDIA

Opportunitie
s

A huge untapped rural market to prefer

the OTC drugs
Fragmented media offers a good choice to
promote the OTC brands effectively
Lower price controls for OTC drugs offer a
freedom to pricing levels
Growing consumer tendency to buy
remedial medicines through OTC in urban
market
Innovative packaging adds convenience
and consuming experience of the market
The changing perception of OTC products
as that of FMCG products

Challenges

Product differentiation in terms of

benefits is to be established in
consumers mind
Marketing
through
mass
media
advertisements makes OTC drugs to be
highly priced than the equivalent
medicines promoted ethically.
Too many pharmaceuticals companies
entering the arena inducing stiff
competition
OTC marketers in India need to revisit
the pricing policies of OTC portfolio to
make it affordable to the masses.
Lack of any clear Govt. regulatory
policy for OTC Drug marketing in India,
is limiting the growth of this segment
Data Source:
OPPI Organization of Pharmaceutical producers of India, 46th Annual Report 2014-15

GROWTH DRIVERS FOR OTC DRUG MARKET

IN INDIA

Rising

Growing preference for self medication in small ailments

Busy lifestyles pushed people for quick and easy solution

Rise in Purchasing Power in rural markets

Rise in Product Innovation increased convenience and affordability

Rise in Product Promotion in mass media and Celebrity Endorsement

Availability of products in pharmacy, grocery shops and hypermarkets

Evolution of Digital & Social Media and its use to reach common mass
Data Source:
http://directfrommind.in/OTC-drugs-market-drivers-in-india

RECOMMENDATIONS FOR OTC DRUG

MARKETERS

Companies, Consumers and the intermediates shall always be in a win win situation.

A good balance between Distributors, Chemists and Modern Trade mediums shall be maintained
to ensure easy availability of products to the consumers in all possible way.

Marketing strategy shall take full advantage of Mass Medias (ATL & BTL advertising) as well as
ethical marketing through Doctors detailing, as Doctors are still the kings in pharmacy
marketing in India.

Advertising strategy shall take full advantage of Digital and Social media platforms (e.g.
Facebook, Twitter, LinkedIn, Whatsapp, Google Play stores etc.) to reach and connect the
consumers directly.

There should be crafted strategy to enter organized retail modern trade, as more and more
consumer are visiting shopping-malls and this can be a good strategy to introduce all the OTC
drugs under one roof.

Consider Post Offices as distribution channel due to their location advantage at remote areas,
where chemists shops are not available. Postman with efficient training in OTC drug marketing,
product safety, efficacy, potency and price will enter directly into consumers home, making
OTC drugs readily available to consumers, giving a competitive advantage for the companies.

Data Source & References:

AIOCDAWACS PharmaTrac Overview June

2016
Business Monitor International, Aranca
Research, 2015
GLOBAL RESEARCH ANALYSIS, 2013
http://directfrommind.in/OTC-drugs-marketdrivers-in-india
McKinsey Analysis 2013
Noverties, Arogya Pariwar: Health for the poor
(April 2010)
OPPI and IMS Consulting Group (IMSCG) 2015
OPPI Organization of Pharmaceutical
producers of India, 46th Annual Report 201415
OTC-the Final Frontier by Nicholas Hall,
Sorento Communications and IMRS, 2006
PriceWaterhouseCoopers. India-Prescription
for Growth, July 2015
Nicholas Halls DB6 Global OTC Databases
2015
Registrar General
&CensusCommissioner,India(ORGI), May
2016

THANK YOU
2016 Shubhankar Mazumdar