How OTC is reshaping India’s pharmaceutical market

From Rx to OTC: The rise of consumerization

The journey from prescription dependence to consumer‑led decision‑making is a continuum: Rx → OTx → deemed OTC → frank OTC—requiring calibrated shifts in influence, messaging and channels.

Success stories like Volini, Pediasure and Candid show how strategies for building trust in OTC health products—through benefit-led messaging, innovative SKUs and dual-brand strategies—can unlock scale while protecting Rx equity.

What changes in the playbook?

• Communication: Move from attribute‑heavy clinical jargons to benefit‑led, relatable narratives (e.g., symptom‑first claims and clear efficacy cues).
• Formats and SKUs: Encourage trials (mini packs) and family use (value packs); offer consumer‑friendly dosage forms and modern formats (like roll-ons, gummies) to drive adherence and differentiation.
• Packaging: Build trust at the shelf with clarity on ingredients, dosing and safety; use variant coding and dispensing aids for convenience.

Rx to OTC dilemma

OTC economics differ from Rx: expect higher upfront ATL/BTL and digital spends, offset by scale-driven profitability and annuity-like revenues. Pharma players should reallocate budgets toward consumer awareness, OTC brand building, digital health commerce and improving pharmacy distribution.

Given the P&L investments required and market challenges for OTC brands in India following an Rx to OTC switch, companies often face a strategic dilemma. Key questions center on selecting the right brand, establishing financial viability and determining effective strategies to mitigate the risks involved in the transition. Companies often struggle to make the shift from serving a patient to serving a wellness oriented consumer segment.

Best practices include intelligent brand selection, phasing the switch, maintaining compliant HCP engagement for OTx brands and prioritizing consumer pull through balanced investments across retail visibility, performance marketing and portfolio extensions.

Creating a resilient, future-ready OTC business

Establishing a sustainable OTC business in India requires a sharp focus on the evolving needs and behaviors of the consumer. At the heart of this approach lie four critical parameters, which keep the consumer at the center and power a resilient, future-ready OTC business. 

Strategic go-to-market levers

Winning in OTC requires omni-channel execution tailored to category roles:

• Chemists: Drive advocacy through retail field force and merchandising.
• Modern trade and grocers: Invest in visibility and education.
• Digital pharmacy and e-commerce: Enhance content, platform fit, pricing, promotions and AI-driven performance marketing for consumer health products.

Distribution models evolve from pharma‑only to hybrid pharma + OTC and OTC‑focused networks as portfolios scale—facilitating Indian drug regulations compliance (Drugs Act for “drug” SKUs; FSSAI/AYUSH for nutraceuticals/AYUSH SKUs) and service levels (credit, secondary schemes, data etc.).

GTM decisions around doctor detailing, target reach, retail and field force footprint, and margin structures become key to improving reach and investments.

Digital commerce: From clicks to cures

Digital platforms play a critical role in expanding OTC access in India. Digital channels now account for a significant share in categories like nutrition, dermatology and consumer wellness.

Success demands a data-driven OTC pricing strategy, dynamic promotions, platform-category fit, the right operating model, content marketing and social media marketing.