Ayurveda Industry in India 2022

Ayurveda Industry in India 2022

The Indian Systems of Medicine (ISM) is a globally recognized traditional system of medicine. It includes India’s ancient medicinal practices such as Ayurveda, Yoga and Naturopathy, Unani, Siddha, and Homeopathy (together called AYUSH). Ayurvedic medicinal practices are based on complex herbal compounds, minerals, and metal substances. In the past few decades, Ayurveda has evolved and has been widely accepted as the science of using herbs and other medicinal plants for developing healthcare and wellness products. Some of the major players operating in the Indian Ayurveda industry are Dabur India Limited, Emami Limited, Patanjali Ayurveda Limited, Shahnaz Ayurveda Private Limited, Shree Baidyanath Ayurved Bhawan Private Limited, and The Himalaya Drug Company.

Market insights:

The revenue of the Ayurveda industry in India is expected to reach INR 1,060.13 Bn by 2026, expanding at a CAGR of ~17.51% during the 2021 – 2026 period. Improved awareness regarding the benefits of Ayurvedic products, consumers' inclination toward well-being, and concerns regarding the use of chemicals in daily-use products are factors driving the growth of this market. However, the major challenges hindering the growth of the market are shortage of quality raw materials to produce Ayurvedic compounds and unavailability of skilled personnel in the industry.

Segment insights:

Based on usage, the Ayurveda industry in India is segmented into Ayurveda products and Ayurveda services. In 2021, Ayurveda products, which includes personal care products, food and beverages, household products, and healthcare products, held the largest of the market due to increasing demand during the first and second waves of the COVID-19 pandemic. The Ayurveda services segment is expected expand again in the next few years given its effectiveness in boosting immunity during the pandemic.

COVID-19 impact analysis:

The COVID-19 pandemic resulted in increased demand for ingredients and herbs used for making Ayurvedic medicines. Moreover, the AYUSH Ministry and the Indian government have undertaken several initiatives, such as dedicated storefront for Ayurveda products on Amazon.in, and campaigns to distribute prophylactic medicines to treat COVID-19. Ayurvedic compounds usually have intrinsic properties to boost human body’s resistance capacity. As a result, the demand for Ayurvedic products surged across the country during the pandemic.