India Herbal Supplements Market Report

India Herbal Supplements Market Executive Summary

The India Herbal Supplements Market was valued at $95.66 Mn in 2023 and is predicted to grow at a CAGR of 9.2% from 2023 to 2030, to $177.13 Mn by 2030.

Herbal supplements, also known as botanicals, are dietary supplements that contain one or more herbs. These products, which include herbal, botanical, or phytomedicines, are derived from plants or botanicals to promote health or treat illnesses. Herbal supplements are intended specifically for internal use and are commonly available in solid forms such as capsules, pills, tablets, and lozenges, but can also be found in liquid or powder forms. Some popular herbal supplements include Echinacea, Garlic, Ginkgo, Ginseng, St. John's Wort, Saw Palmetto, and Valerian.

About 71% of Indian households regularly consume nutraceuticals such as vitamins, minerals, and herbal supplements. However, nearly 69% of these consumers use these supplements without consulting a doctor. The market is driven by significant factors like growing health awareness, traditional medicine heritage, and rising incidence of chronic disease. However, quality control issues, limited scientific validation, and competition from pharmaceuticals restrict the growth and potential of the market.

Prominent players in this field include Himalaya Wellness, Dabur India, Patanjali Ayurved, Zandu Realty, and Amway among others.

Market Dynamics

Market Growth Drivers

Growing Health Awareness: The rising awareness of health and wellness among Indians is boosting the demand for natural and herbal products. As people become more aware of the advantages of a healthy lifestyle, they are increasingly turning to supplements to enhance their overall well-being. This trend acts as a market driver because it indicates a growing consumer base that prioritizes health, leading to increased sales and the expansion of the herbal supplement market in India.

Traditional Medicine Heritage: India's long-standing tradition of medicine systems like Ayurveda and Unani, coupled with the cultural trust in these ancient practices, enhances the popularity and credibility of herbal supplements. This deep-rooted acceptance acts as a market driver by fostering consumer confidence and driving demand, thereby fueling the growth of the herbal supplement market in India.

Rising Incidence of Chronic Disease: Approximately 21% of India's elderly population over 60 years old suffers from at least one chronic disease, with a higher prevalence in urban areas (29%) compared to rural areas (17%). This significant incidence of chronic conditions serves as a market driver for herbal supplements, as more people seek natural and complementary remedies to manage their health issues, thereby boosting demand in the Indian market.

Market Restraints

Quality Control Issues: Maintaining consistent quality and efficacy of herbal supplements poses a significant challenge due to variations in raw material quality, risks of adulteration, and insufficient stringent quality control measures. These issues can erode consumer trust, thereby hindering market growth and acting as a restraint for the herbal supplement market in India.

Limited Scientific Validation: The limited scientific validation and clinical evidence supporting efficacy claims for herbal supplements can foster skepticism among both consumers and healthcare professionals. This lack of robust scientific backing restricts the wider acceptance and adoption of herbal supplements in the market in India, acting as a significant restraint.

Competition from Pharmaceuticals: Herbal supplements encounter strong competition from established pharmaceutical products in India, as consumers and healthcare providers often favor pharmaceutical solutions for their proven efficacy, standardized dosages, and widespread availability. This preference limits the market potential for herbal supplements, posing a restraint on their growth and market penetration in the country.

Regulatory Landscape and Reimbursement Scenario

The Department of AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homoeopathy), overseeing India's herbal and traditional medicine sector, is tasked with establishing standards, approving new products, and managing the quality of herbal supplements. Meanwhile, the Central Drugs Standard Control Organization (CDSCO), operating under the Ministry of Health and Family Welfare, regulates the import, manufacturing, distribution, and sale of herbal supplements. It enforces adherence to good manufacturing practices (GMP) and safety standards within the industry. The government maintains Annexure I, an approved list of Ayurvedic, Unani, Siddha, and Homeopathic medicines eligible for reimbursement. This list also sets maximum prices for each approved medicine. Central government employees are only reimbursed for herbal supplements prescribed by authorized medical attendants.

Competitive Landscape

Key Players

Here are some of the major key players in the Herbal Supplement Market:

• Himalaya Wellness
• Dabur India
• Patanjali Ayurved
• Zandu Realty
• Amway
• Baidyanath Group
• Charak Pharma
• Organic India Pvt. Ltd.
• Ayurleaf Herbals
• Herbalife