India's herbal and ayurvedic OTC market is booming, projected to hit $118 million by 2033. Millennials and Gen Z are driving demand, favoring modern formats like gummies and effervescent tablets. Despite growth, regulatory hurdles and quality concerns persist, with only 20% of products clinically validated. Digital adoption is accelerating sales, with 10% of urban purchases now online.
June 24, 2025
India's herbal and ayurvedic OTC market set to outpace global growth: Report
"Over 40% of new adopters are
millennials and Gen Z, signalling a generational shift for traditional wellness
in modern formats." — MedIQ Report
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.
Key Points
1 Market to
reach $118M by 2033 outpacing global trends
2 40% of
new adopters are millennials and Gen Z
3 20% of
products have clinical validation
4 Digital
adoption drives 10% urban online sales
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.
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