Is India’s Herbal and Ayurvedic OTC Market Set to Surpass Global Growth?
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Synopsis
Discover the exciting growth of India's herbal and ayurvedic OTC market, projected to grow significantly and outpace global trends by 2033. Amidst challenges, this sector is witnessing a transformation driven by a preference for natural wellness products, especially among younger generations.
Key Takeaways
- Projected growth of 6.5% CAGR in India's herbal OTC market.
- Challenges include regulatory hurdles and quality concerns.
- Strong consumer preference for natural wellness products.
- Millennials and Gen Z are leading new adoption rates.
- Digital sales are increasing, indicating a shift in purchasing behavior.
New Delhi, June 23 (NationPress) The herbal and ayurvedic OTC (over-the-counter) market in India is projected to expand at a CAGR of 6.5 percent, escalating from $69 million in 2025 to $118 million by 2033, surpassing worldwide trends, according to a report released on Monday.
Nonetheless, the industry faces significant challenges, as 40 percent of new product launches in 2024 are anticipated to encounter regulatory obstacles, with only 20 percent possessing clinical validation. Furthermore, quality issues impact up to 30 percent of products, hindering their reliability and acceptance for clinical conditions, as highlighted in the report.
The herbal and ayurvedic OTC sector is reportedly escalating at an extraordinary pace. Recent studies indicate that it has gained a strong foothold in over 70 percent of Indian households.
This information is derived from a recent analysis by MedIQ, the healthcare intelligence division of 1Lattice, which underscores a significant shift in consumer preferences toward natural, chemical-free wellness products across various age demographics.
The research identifies the surge in popularity of categories such as Chyawanprash, Ashwagandha supplements, Ayurvedic personal care products, functional foods, and youth-oriented items like gummies and effervescent tablets as the main drivers behind this rapid growth.
Moreover, the findings indicate that over 40 percent of new consumers are millennials and Gen Z, demonstrating a generational transition in traditional wellness towards modern formats.
As per the report, the acceleration of digital adoption is propelling market growth, with over 10 percent of urban OTC sales now occurring online, and 35 percent of new products featuring tech-driven personalization.
Additionally, nearly 60 percent of urban consumers are actively pursuing clean-label and organic-certified products, reflecting heightened awareness and scrutiny among Indian consumers.
The sector is also experiencing a wave of innovation, with research and development investments rising by 45 percent in 2023.
On a global scale, the herbal and ayurvedic OTC market is expected to grow from $145 billion in 2025 to $230 billion by 2033, indicating a growing focus on preventive and holistic wellness.
Point of View
It's imperative to recognize the dynamic evolution within India's herbal and ayurvedic OTC market. While the growth figures are promising, the challenges outlined, including regulatory hurdles and quality concerns, must be addressed to ensure sustainable development. With the increasing consumer shift towards natural products, this sector holds significant potential, but the need for authenticity and trust cannot be overstated.
NationPress
23/06/2025
Frequently Asked Questions
What is the projected growth rate of India's herbal and ayurvedic OTC market?
India's herbal and ayurvedic OTC market is expected to grow at a CAGR of 6.5 percent, reaching $118 million by 2033.
What are the main challenges facing the market?
The market faces regulatory hurdles for 40 percent of new launches, with only 20 percent having clinical validation and 30 percent affected by quality concerns.
Which demographics are driving this growth?
Millennials and Gen Z are significant contributors, making up over 40 percent of new adopters, indicating a generational shift towards herbal and ayurvedic products.
How is digitalization impacting the market?
Digital adoption is accelerating the market's growth, with over 10 percent of urban OTC sales occurring online and 35 percent of new products featuring tech-driven personalization.
What is the global forecast for the herbal and ayurvedic OTC market?
Globally, the herbal and ayurvedic OTC market is expected to grow from $145 billion in 2025 to $230 billion by 2033.
