Indian ayurvedic market is anticipated to grow at a considerable CAGR of 15.6% during the forecast period. The market is experiencing significant growth due to factors including the rising awareness about the importance of a healthy lifestyle, the increasing preference in favor of chemical-free natural products, as well as favorable government initiatives that have led to the expansion of the ayurvedic market in India. For instance, in May 2022, the Ministry of Ayush and Food Safety & Standards Authority of India (FSSAI) under MoHFW (Ministry of Health and Family Welfare, Government of India), India’s apex body for food regulation formulated regulations of safety & quality standards for food products. This extensive program will guarantee the production of high-quality ayurvedic items and aid in growing the global market for Made-In-India goods. Additionally, in March 2022, an agreement was made by the World Health Organization (WHO) with the Indian government to launch the WHO Global Centre for Traditional Medicine. The Government of India invested USD 250 million to support this global research center for traditional medicine. The idea is to use cutting-edge research and technology to connect the potential of conventional medical practices from around the globe to enhance both human and environmental health.

Segmental Outlook 

The Indian ayurvedic market is segmented based on the product type and distribution Channel. Based on the product type, the market is sub-segmented into personal care and healthcare. The personal care sub-segment is further sub-segmented into hair care, oral care, and skin care. The healthcare segment is further bifurcated into dietary supplements and ayurvedic medicine/drugs. Furthermore, based on the distribution channel, the market is sub-segmented into supermarkets, pharmacies, departmental stores, and online stores. Among the product type, the personal care sub-segment is expected to hold a significant share of the Indian ayurvedic market. The primary factor contributing to the segmental growth includes the rising use of herbal ingredients by manufacturers for the production of personal care products such as lotions, oils, shampoos, and others. For instance, in February 2021, Vedix, an ayurvedic haircare company expanded its business into the skincare market by introducing a product line of goods that combine technology and all-natural ingredients. With its new skincare line, Vedix expects to increase its consumer base throughout India and extend its presence to new demographics.

Among the distribution channel, the online stores sub-segment is expected to hold a significant share of the Indian ayurvedic market. The primary factor supporting the segmental growth includes the increasing internet penetration along with the growing usage of smartphones across the country. Owing to this, the key players operating in the market are shifting their focus on establishing online channels with an aim to increase sales. For instance, in September 2017, Dabur partnered with Amazon to launch Ayurveda Online, an online multi-brand marketplace. The platform features several ayurvedic products of brands including Patanjali and others.

Products supplied by Dabur on their website and marketplaces such as Amazon and Flipkart have seen an increase in sales. Company has decided to launch a number of new items that are digital-first and start with e-commerce before moving onto other mediums.

Market Players Outlook

The major companies serving the Indian Ayurvedic market includes include Dabur India Ltd., Patanjali Ayurved Ltd., Veda Ayurvedics Pvt. Ltd., Charak Pharma Pvt. Ltd., Kerala Ayurveda Ltd., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in September 2022, Puig, a Spanish company acquired Kama Ayurveda for $12.2 million. Through this acquisition, the company aims to strengthen Kama Ayurveda's market dominance in India and increase its geographic reach in international regions, including the UK by 2023. 

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the Indian ayurvedic market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.