India Ayurveda Market Analysis

India Ayurveda Market Executive Summary

The India MRI Market is at around $261.88 Mn in 2023 and is projected to reach $1,661.03 Mn in 2030, exhibiting a CAGR of 30.20% during the forecast period.

Ayurvedic medicine (also called Ayurveda) is one of the world’s oldest medical systems. It originated in India more than 3,000 years ago and remains one of the country’s traditional healthcare systems. Ayurveda encourages certain lifestyle interventions and natural therapies to regain a balance between the body, mind, spirit, and the environment. It emphasizes prevention and encourages the maintenance of health through close attention to balance in one’s life, right thinking, diet, lifestyle, and the use of herbs. Ayurveda is not a substitute for Western allopathic medicine rather it can be used in conjunction with Western medicine to make a person stronger and less likely to be afflicted with disease and/or to rebuild the body after being treated with drugs or surgery. Ayurvedic products are traditional herbal and natural products based on traditional Indian medicine. These include herbal supplements, teas, oils and powders made from natural ingredients such as herbs, spices, roots, and fruits. They promote health and general well-being by restoring balance to the body and mind and are used to treat various health problems such as digestive problems, stress, sleep disorders, and skin problems. Because they are made from natural ingredients, they have fewer side effects than drugs and synthetic chemicals.

Around 80% of people in India use some of the other forms of traditional medicine including Ayurveda properties. The market therefore is driven by significant factors like increasing health consciousness, government initiatives, and minimal side effects. However, high cost, specialized infrastructure and site requirements, and strict regulatory approval restrict the growth of the market.

The leading pharmaceutical companies include Dabur India and Patanjali Ayurved for Ayurvedic products. Vicco Laboratories, Himalaya Wellness, and Hamdard Laboratories are also significant contributors to India's Ayurveda market.

Market Dynamics

Market Growth Drivers

Increasing Health Consciousness: The COVID-19 pandemic has increased awareness about Ayurveda's healing benefits, leading to a massive shift in consumer preferences towards herbal products, supplements, and Ayurvedic health solutions. There is a noticeable rise in demand for Ayurveda-based food, beverage, and personal care products.

Government Support and Initiatives: The Government of India is undertaking favorable initiatives to support the Ayurvedic industry, such as organizing exhibitions, trade fairs, and roadshows for promotion. The government is investing in R&D programs to develop new Ayurvedic formulations, improve manufacturing processes, and incorporate modern technology. Regulatory measures by the government ensure quality and standardization, instilling confidence in investors.

Global Recognition: India is considered the second-largest exporter of Ayurveda and alternative medicine globally. Strategies to globalize and promote Ayurveda, along with the rising medical tourism, are offering lucrative growth opportunities

Minimal Side Effects: The global demand for herbal remedies aimed at boosting immunity has seen a notable rise. This increase can be attributed to growing concerns over chronic health conditions and obesity, which have prompted people to seek out foods and beverages known to enhance immune function.

Market Restraints

Lack of Standardization: The lack of standardized manufacturing practices and protocols leads to product quality and efficacy inconsistencies. This can be a significant restraint, especially in the context of global market competition

Competition from Modern Medicine: The dominance of modern medicine in the healthcare sector poses a significant challenge for Ayurveda to gain widespread acceptance and adoption, especially among the general population. Modern medicine, emphasizing scientific evidence and clinical trials, has become the primary framework for understanding and responding to health issues. This has led to the marginalization of traditional and holistic approaches like Ayurveda, often perceived as lacking in scientific rigor.

Limited Access to Practitioners: While there are many Ayush practitioners in India, access to these practitioners, especially in rural areas, can be limited, which hinders the widespread adoption of Ayurvedic practices. This limitation is evident in a cross-sectional study conducted in Karnataka, which found that only 30% of the rural population and 43.5% of the urban population followed prescription guidelines for treatment.

Regulatory Landscape and Reimbursement Scenario

Central Drugs Standard Control Organization (CDSCO) is responsible for ensuring the safety, efficacy, and quality of drugs in India, including Ayurvedic products. The Food Safety & Standards Authority of India (FSSAI) has introduced the Food Safety and Standards (Ayurveda Aahara) Regulations, 2022, which impose strict guidelines for the production, packaging, and labeling of Ayurvedic food products. Manufacturers must obtain FSSAI approval before selling these products, a time-consuming and costly process.
The Haryana government has announced that state government employees will now be able to get reimbursement for Ayurvedic medicines, in addition to allopathic medicines. This is a significant move to promote the use of Ayurvedic treatments.

Competitive Landscape

Key Players

Here are some of the major key players in the India Ayurveda Market:

• Dabur India
• Baidyanath
• Patanjali Ayurved
• Hamdard Laboratories
• Emami
• Charak Pharma
• Himalaya Wellness
• Vicco Laboratories
• Sandu Pharmaceuticals
• Kerala Ayurveda