The worldwide market for over-the-counter (OTC) drugs could exceed $70 billion by 2015, according to a report by Visiongain, a British research company. The U.S. market for OTC drugs was $17.4 billion in 2011, according to the Consumer Healthcare Products Association (CHPA), an OTC industry trade group. That's a steady, though not radical increase from 1964 when OTC sales were recorded at $1.9 billion.

1. PIYUSH TRIPATHI
piyushtripathi1992@rediffmail.com
OTC MEDICINES
MARKET

2. INTRODUCTION
• Non-Prescription Drugs
• No Legal Recognition in India
• Same Standards as Prescription Drugs
• Not Included in Schedules H and X of the
Drug and Cosmetics Rules
• Legally Allowed to be Sold by Pharmacists
or Medical Stores without Prescription
from a RMP

3. Importance of Self-Care
• TRUSTED First Line of Treatment
• Provide ACCESS 24/7
• AFFORDABLE Treatment
• EMPOWER Individuals & Families
• Your Health at Hand

4. Major Companies
Dr.Reddy's, Wockhardt, Cadista, Cipla & Zydus Cadila are
examples of Indian companies that have
done well in the OTC segment. The
attractiveness of the Indian OTC market
has extended to MNCs as well. Novartis, Sanofi, GSK,
Pfizer and Johnson & Johnson are
examples of MNCs that have a strong
presence in the Indian OTC segment.
Perrigo - A classic example of OTC
focused company

5. Total OTC Medication Sales in the U.S.
32
34
36
38
40
42
44
46
2010 2011 2012 2013 2014
37.2*
38.4*
40.1*
42.1*
44.3*
* Sales in billion U.S. dollars
#
# Statista 2015

6. Mega Categories within OTC
Contribute (70% of total)
• Nutritionals ($9.7)
• Respiratory ($7.5)
• Analgesics ($4.4)
• Gastrointestinal ($4.3)
• First Aid ($3.0)

7. Study Findings 1
• The availability of OTC medicines provides
$102 billion in value to the U.S. healthcare system
annually.
• Each dollar spent on OTC medicines saves
$6-7 for the U.S. healthcare system.
• If OTC medicines did not exist, an additional
56,000 medical practitioners would need to
work full-time to prescribe medicines for self-
treatable conditions.

8. Study Findings 2

9. Study Findings 3

10. Globally, Western Europe and the
U.S. remain the largest OTC
regions representing 43% of the
sector’s sales, but the real driving
forces behind its recent
performance are the developing
markets of South East Asia, Latin
America (LA) and Central &
Eastern Europe (CEE).

11. Effectiveness of Marketing Campaigns
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

12. OTC Recommendation
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

13. OTC Market in India
• Ranks 3rd in terms of Volume
•14th in terms of Value
• India ranks 11th in terms of
the OTC Market Size

14. OTC Products in India
• Analgesic or Cold Tablet (Crocin, Disprin)
• Antiseptic Cream (Boroplus)
• Balm or Rubs (Himani Fast Relief, Moov)
• Cough Lozenges (Strepsils)
• Digestives (Dabur Hingoli, Eno)
• Health Supplements (Boost, Horlicks)
• Skin Treatment (Itchguard) etc….

15. OTC Market Growth Drivers
WIDER
DISTRIBUTION
CHANNEL
DIRECT TO
CONSUMER
ADVERTISEMENTS
INCREASED
CONSUMER
AWARENESS
LOW
PRICE
CONTROLS

16. Growth drivers of OTC Market in India
• RISING AWARENESS AMONGST
CONSUMERS
• SELF MEDICATION TENDENCY
• LIFESTYLE FACTORS
• RISING PURCHASING POWER PARITY OF
CONSUMERS
• PSYCHOLOGICAL FACTORS/ MINDSET
CHANGE

17. Continued ...
• PRODUCT INNOVATION
• PROMOTION
• CHANNELS DEVELOPMENT
• RISING AWARENESS ABOUT SAFETY
• RURAL PENETRATION
• PRODUCT INNOVATIONS
• EXPLORING NEW POSITIONING
• EVOLUTION OF DIGITAL MEDIA

18. OTC Medicine Market Forecast

19. REFERENCES
• BMI Research
• www.equitymaster.com (Pharma OTC: A step
beyond generic drugs)
• Statista 2015
• IRI
• Dolcera
• IMS
• CHPA