The Indian Ayurveda market is poised for a remarkable upswing, with a projected valuation of ₹1.2 lakh crore (USD 16.27 billion) by FY28, according to a recent study by NirogStreet. This signifies a significant leap from the current market size estimated at ₹57,450 crore (USD 7 billion). NirogStreet’s study breaks down this growth further, indicating a Compound Annual Growth Rate (CAGR) of 15% for the overall Ayurveda market (products and services) from FY23 to FY28.
Unveiling the Growth Engine
NirogStreet attributes this Ayurvedic ascension to several key factors:
- Rising Demand for Natural Remedies: The global consumer base is increasingly turning towards natural healthcare solutions. Ayurveda’s core principles of plant-based ingredients and holistic wellness resonate with this trend, particularly as preventive healthcare gains momentum. The study pinpoints a projected CAGR of 16% for the Ayurveda product segment alone, reflecting the burgeoning demand for these natural remedies. NirogStreet estimates the Ayurveda product market to reach a value of ₹1,00,700 crore (USD 13.7 billion) by FY28.
- Governmental Support and Industry Growth: The Indian government has emerged as a staunch advocate for Ayurveda’s growth. Initiatives like establishing the AYUSH ministry and fostering research and development through collaborations with scientific bodies like the Council of Scientific and Industrial Research (CSIR) are paving the way for advancements. Additionally, efforts to integrate Ayurveda into mainstream healthcare through insurance coverage and hospital inclusions are fostering wider acceptance. NirogStreet’s survey also highlights the current strength of the Indian Ayurvedic manufacturing sector, pegged at a value of ₹89,750 crore (USD 11 billion) in FY22. This signifies a well-established industry with the capacity to cater to the anticipated surge in demand.
Export Potential, Ayurveda Services, and a Manufacturing Landscape
The study also emphasizes the significant role of exports and sheds light on the current manufacturing landscape:
- Export Potential on the Horizon: Ayurveda’s unique approach to wellness holds immense potential to capture a significant share of the global market, driven by the rising international interest in alternative healthcare solutions. With a growing focus on preventive and holistic healthcare practices, many countries are looking towards Eastern medicine for complementary treatment options. The NirogStreet study suggests exports will play a critical role, with a projected increase in international demand for Indian Ayurveda products contributing substantially to the overall market growth. The survey estimates the value of Ayurveda product exports at around Rs 40,900 crore (USD 5 bn) in FY22.
- Growth in Ayurveda Services: The Ayurveda service sector, which includes consultations with practitioners, treatment facilities, and wellness programs, is also poised for growth, with a projected CAGR of 12.4% from FY23 to FY28. This indicates an increasing demand for holistic wellness experiences and consultations with qualified Ayurvedic practitioners.
- Manufacturing Strength and Room for Growth: The NirogStreet survey highlights the strength of the domestic Ayurvedic manufacturing sector, with an estimated value of ₹89,750 crore (USD 11 billion) in FY22. However, the study also reveals some import activity, estimated at Rs 8,600 crore (USD 1 billion) in the same year. This data suggests there might be opportunities to further enhance domestic manufacturing capabilities to meet the growing demand. Notably, around 7,500 manufacturers across 10 states participated in the NirogStreet survey, including Uttar Pradesh, Bihar, Madhya Pradesh, Delhi, Haryana, Rajasthan, Punjab, Maharashtra, Jammu and Kashmir, and Kerala. This geographical spread indicates a robust and well-distributed manufacturing base.
A Thriving Ecosystem and the Road Ahead
The Ayurveda market is further bolstered by a burgeoning startup ecosystem leveraging technology to enhance various aspects. These include online sales platforms, tele-consultations with Ayurvedic practitioners, and the development of Ayurveda-based mobile applications, with a projected growth rate outpacing the overall market.
By addressing challenges like standardization, quality control, scientific validation, and strategic marketing, India’s Ayurveda product market has the potential to not only reach the projected value of ₹1.2 lakh crore by FY28, but also emerge as a global leader in the natural healthcare domain. This ancient Indian system of medicine has the potential to offer a unique and valuable addition to the world’s healthcare ecosystem, fostering a more holistic approach to wellness.
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