Study of consumer buying behavior for OTC drug market of India

Abstract

India is now among the top five pharmaceutical emerging markets of the world. The Indian pharmaceuticals industry has been growing at a compounded annual growth rate (CAGR) of more than 15 per cent over the last five years and has significant growth opportunities. By 2020, the sector is expected to grow five-fold to reach US$ 91.45 billion.1 Since 2011, the pharmaceutical industry is headed into an unprecedented period of drug actives losing patent protection, including many popular products. Companies facing this challenge tried different strategies to minimize the critical sales losses that this situation could cause. Some of the strategic options for extending the product life cycle of Rx products include extended/ controlled released versions, switching users across to a new, improved version of the product, or the option of releasing a company–owned or licensed generic. Another strategy though was to switch the product from prescription (Rx) to over?the?counter (OTC). Currently, India ranks 11th globally in OTC market size. In 2009, it was of the size USD 2 billion and growing at a CAGR of 10%.2