India’s Herbal and Ayurvedic OTC Market Set to Outpace Global Growth: Report
25-Jun-25 06:05:22
New Delhi– India’s herbal and ayurvedic over-the-counter (OTC) market is projected to grow at a compound annual growth rate (CAGR) of 6.5 per cent, rising from $69 million in 2025 to $118 million by 2033, according to a new report released on Monday. This growth is set to outpace global trends in the herbal wellness sector.
The report, published by MedIQ, the healthcare intelligence division of 1Lattice, highlights a significant transformation in Indian consumer behavior, marked by a strong shift toward natural, chemical-free wellness products across all age groups.
Despite this optimistic outlook, the report also underscores key challenges facing the sector:
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40 per cent of new product launches in 2024 encountered regulatory roadblocks
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Only 20 per cent of products currently have clinical validation
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Quality concerns affect up to 30 per cent of products, limiting wider clinical adoption and credibility
Nonetheless, the market is witnessing rapid expansion. The study indicates that herbal and ayurvedic OTC products have made inroads into more than 70 per cent of Indian households, driven largely by increasing consumption of popular categories like Chyawanprash, Ashwagandha supplements, ayurvedic personal care, functional foods, and youth-oriented products such as gummies and effervescent tablets.
Notably, millennials and Gen Z account for over 40 per cent of new adopters, signaling a generational shift toward traditional wellness remedies — now offered in modern formats.
The digital revolution is also playing a key role in the sector’s growth. According to the report:
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Over 10 per cent of urban OTC sales now occur online
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35 per cent of new products incorporate tech-enabled personalization
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Nearly 60 per cent of urban consumers actively seek clean-label and organic-certified products, reflecting increased scrutiny and awareness around product transparency
Further, R&D investments surged by 45 per cent in 2023, fueling product innovation and scientific advancement in the sector.
Globally, the herbal and ayurvedic OTC market is projected to expand from $145 billion in 2025 to $230 billion by 2033, as consumers worldwide embrace preventive and holistic health solutions. (Source: IANS)