Tuesday, June 18, 2024

Trends and Growth Outlook in the Indian Ayurvedic Market

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The global wellness industry is now worth over $4.5 trillion and alternative healing practices like ayurveda are a big part of it. In India, the ayurvedic products market size reached INR 626 billion in 2022 and is expected to reach INR 1,824 billion by 2028, registering a CAGR of 19.3% during 2023-2028.

Ayurveda has been a part of India’s cultural and medical heritage for thousands of years. As a sustainable healthcare system, Ayurveda highlights the use of medicinal plants and herbs for internal healing, preventing illnesses and maintaining wellness. Its holistic approach helps in maintaining a balance within the body, mind and soul. It promotes a culture of self care and its remedies and practices are still followed in Indian households, making it highly sustainable and relevant in Indian markets and beyond.

As per a report by the Global Wellness Institute, the global wellness industry is now worth over $4.5 trillion and alternative healing practices like Ayurveda are a big part of it. In India, as per IMARC, the Ayurvedic products market size reached INR 626 billion in 2022 and is expected to reach INR 1,824 billion by 2028, registering a CAGR of 19.3% during 2023-2028.

One of the prime growth drivers of the Ayurvedic market was the COVID-19 pandemic, whose uncertainties made us value the importance of a healthy mind and body even more. The consequent rise in awareness about Ayurveda’s healing benefits among the masses has caused a massive shift in consumer trends and preferences towards herbal teas, herbal infusions and Ayurvedic health supplements and more. Further, a noticeable rise in the demand and supply of Ayurveda-based food and beverage products is being seen in the market.

Growth Drivers for Ayurveda market

There are several other growth drivers contributing to the burgeoning of the Ayurveda market in India:

-Government support and initiatives: One of the key growth drivers for the Ayurveda market in India can be attributed to the government’s support and initiatives. The Ministry of Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy (AYUSH) has launched several programs to promote Ayurveda and increase its accessibility. These include the Ayush Health and Wellness Centers (AHWCs), which aim to provide Ayurvedic healthcare services to rural and remote areas. Another is the Ayush Information Cell, which provides information and guidance on Ayurveda to the public.

The Government of India also recognizes Ayurveda as an important form of alternative medicine and endeavors to promote evidence-based research in Ayush systems and integrate them into modern medical practice to provide holistic, safe and effective care. To meet the objective, the Finance Ministry of India has increased the total allocation of budget to the Ayush Ministry by 20 percent to Rs. 3,647 crore in 2023.

In India, the FSSAI [Food Safety & Standards Authority of India] is the primary regulatory body overseeing the safety and quality of food products; it has recently included Ayurveda-based food products under its purview.

Specific guidelines have been laid out for the production, packaging and labelling of Ayurvedic food products, and manufacturers are required to obtain FSSAI-based approval before selling these products in the market. 

In addition, the Indian government has also been supporting the development of GMP [Good Manufacturing Practices] and systems for the Ayurvedic manufacturing industry. These protocols are designed to ensure that the finished products and raw materials meet the pharmacopoeial quality standards, ensuring safety and efficacy of Ayurvedic products leading to increased consumer trustworthiness and confidence in the industry.

Changing Tastes and Preferences: Since consumers have become more health-conscious, they are increasingly seeking natural, organic and high quality alternatives to synthetic and chemical-based products, which is another factor driving growth in the Ayurveda market.

There is a sudden increase in new age brands using the wisdom of Ayurveda to develop products using herbs, spices and other natural ingredients. Brands like Butterfly Ayurveda blend the wisdom of Ayurvedic knowledge and modern technology, while also keeping in mind the taste preferences of customers. These brands offer a unique and niche range of Ayurvedic and Ayurveda-inspired food and beverage products aimed to transform people’s lives. Such products are now a popular choice among health-conscious consumers.

-Increased Value of Fresh Foods: The demand for fresh, healthy and nutritious options has also led to a surge in the popularity of Ayurveda-based products. In today’s fast-paced lifestyle, the demand for on-the go or quick service and readily available packaged products has increased manifold. These claim to be nutritionally rich but aren’t freshly prepared are being slowly discarded. People have now slowly but steadily started realizing the value of freshly prepared meals, foods that are rich in traditional herbs & spices and are seeking out products that incorporate such ingredients and practices from Ayurveda.

The above-mentioned growth drivers have led to a significant transformation of the Indian Ayurvedic market in a span of a few years. Thanks to the increasing awareness about its benefits and the demand for natural and herbal products, it has led to the development of new trends that were unheard of before.

New Trends and Developments

Some of the new trends and developments are:

Improved Infrastructure to Meet Growing Demand: There has been a surge in the adoption of Ayurveda in mainstream healthcare in India, with hospitals and clinics incorporating Ayurvedic treatments and therapies into their offerings. This is expected to further fuel growth in the Ayurveda market. The enhanced demand for Ayurvedic dietary supplements, made using herbs, spices and other ingredients, has gained a new found popularity among consumers due to their health benefits, which includes promoting overall health and wellness, improving immunity and preventing chronic diseases.

-Increased Focus on Research & Development: With due government efforts, there is an increased focus on research and development and Ayurveda-inspired companies are now investing more in R&D to improve the quality and efficacy of their products. This has led to the development of new Ayurvedic formulations and medicines, which are backed by scientific research and clinical trials. The products made after such an extensive R&D have the ability to bring about a lasting change within a person’s overall health, help cure ailments while treating the root cause of the health issue and ensuring sustained relief and rejuvenation within an individual.

Use of Technology & Digital Platforms: Another significant development in the Ayurveda market in India is the increasing use of digital platforms for marketing and distribution along with Ayurveda-based digital health platforms. The growth of e-commerce and online platforms has helped leverage the digital channels to reach a wider audience. The emergence of new Ayurveda-inspired brands has led to the evolution of innovative technologies to develop personalized Ayurvedic treatments and products and launch their own digital health platforms to provide online consultations, personalized treatments and wellness plans to consumers.

Driven by the rising demand for natural and organic products and the growing awareness of Ayurveda’s potential in healthcare, the industry is expected to see a change bigger than ever. The establishment of wellness centres and ‘yogashalas’ has become a significant contributor to the sustainability of Ayurveda, as they offer a platform for promoting its principles and make it more accessible to people seeking alternative healing methods.

In such a scenario, brands like Butterfly Ayurveda contribute by delivering freshly prepared foods, Ayurveda-inspired cakes and cookies, herbal teas & infusions that are made with no artificial ingredients, colors and scents, backed by R&D, and FSSAI approved. As it continues to gain popularity among consumers and is increasingly adopted in mainstream healthcare, the Ayurveda industry is expected to witness sustained growth in the coming years and is set to become a key player in the global healthcare industry.

 The writer is Founder, CEO, Butterfly Ayurveda, an organization engaged in research, development, manufacturing, and marketing of Ayurvedic products with its entire product range focused on helping people with lifestyle-related ailments.

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