India’s ORS Market Plummets Amidst Government’s Stricter Regulations, ETHealthworld
New Delhi: The market for oral rehydration solutions (ORS) in India has started declining, impacting pharmaceutical companies that produce them for summer consumption. Experts said the key reason could be the government’s ban on labelling sugary and fruit-based drinks as ORS.
Last year, the Food Safety and Standards Authority of India (FSSAI) banned the use of the term “ORS” (oral rehydration solutions/salts) on sugary drinks and beverages. It said manufacturers must meet the WHO’s norms.
Sivaranjani Santosh had filed a lawsuit and crusaded against sugary drinks that were allegedly being marketed as ORS. A favorable ruling led to withdrawal of multiple brands from the market.
According to data by PharmaTrac, value growth in the sector declined by 26% in March. In February and March this year, the value for ORS sales in India stood at ₹80 crore and ₹85 crore, respectively, down from ₹111 crore and ₹115 crore in the year-ago months.
Despite an 8% fall in the 12-month MAT (moving annual total), the ORS market stood at ₹1,128 crore, posting a CAGR of 13% over the last five years.
The segment leader, Electral of FDC, has not been spared either, recording a MAT value decline of 7% in sales. Sheetal Sapale, vice-president, commercial, PharmaTrac, said the oral electrolytes market is showing degrowth this year. “Part of this decline needs to be contextualised against the high base of last year,” she said, adding that the monthly trends are in line with seasonal patterns.
However, an expert said, “Even with summer underway, the expected uptick is failing to materialise at the scale the industry anticipated.” Experts said the FSSAI order could be a reason for the odd pattern. “FSSAI’s intervention dismantled the marketing architecture these brands had built,” said another executive.
The medical community is steering parents away from commercial formulations altogether. Sivaranjani Santosh said, “I gathered substantial evidence revealing a serious public health concern. A large number of children were being impacted, with several cases severe enough to require hospitalisation,” she said. She said the campaign compelled the FSSAI to issue the order that the term ORS can’t be used on any food or beverage as standalone or with a prefix or a suffix on the label.
“The companies had to withdraw their misbranded products from the market… The term ORS can be used only for the WHO recommended formula ORS, and the companies have to get permission from CDSCO, and not FSSAI,” she said.
