New Delhi, June 23 (IANS) India’s herbal and ayurvedic OTC (over the counter) market is expected to grow at a CAGR of 6.5 per cent, from $69 million in 2025 to $118 million by the end of 2033, outpacing global trends, a report showed on Monday.
However, challenges persist as 40 per cent of new launches in 2024 faced regulatory hurdles, only 20 per cent of products have clinical validation, and quality concerns affect up to 30 per cent of offerings, limiting their credibility and adoption for clinical illness, the report mentioned.
The herbal and ayurvedic OTC industry is reported to be growing at an unprecedented rate. According to latest research, it has made a robust entry in more than 70 per cent of Indian households.
This insight comes from the latest industry analysis by MedIQ, the Healthcare Intelligence research wing of 1Lattice, which highlights a fundamental shift in consumer behaviour, with a strong shift in preference for natural, chemical-free wellness products across all age groups.
The study reveals that the driving factor behind the rapid growth is due to the widespread consumption of popular categories, such as Chyawanprash, Ashwagandha supplements, Ayurvedic personal care, functional food, and youth-targeted products — like gummies and effervescent tablets.
The study also reveals that over 40 per cent of the new adopters are millennials and Gen Z, signalling a generational shift for traditional wellness, but in modern formats.
According to the report, digital adoption is accelerating the market’s expansion, with over 10 per cent of urban OTC sales are now online, and 35 per cent of new products offer tech-driven personalisation.
Meanwhile, nearly 60 per cent of urban consumers actively seek clean-label and organic-certified products, indicating growing awareness and scrutiny amongst the Indian consumers.
The sector is also seeing a strong wave of innovation, with R&D investments up by 45 per cent in 2023.
Globally, the herbal and ayurvedic OTC market is forecasted to grow from $145 billion in 2025 to $230 billion by 2033, reflecting increased focus on preventive and holistic wellness.
—IANS
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