Global Ayurvedic Market: By Distribution Channel (Supermarket, Pharmacies Stores, Departmental stores, Beauty Stores, and Specialty Stores), Products (Healthcare, Personal Care, Skincare, Hair Care, Oral Care, and Drugs), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032

Market Perspective

The global Ayurvedic Market revenue is poised to reach a valuation of USD 23.36 billion by 2032 from USD 6.63 billion in 2022, at a CAGR of 15.02% during the forecast period 2023-2032.

In order to maintain a competitive position in the market, the industry's leading players are opting for various growth strategies, such as geographical expansion, product launches, partnerships, capacity expansion, mergers and acquisitions, and product innovations. In October 2022, Apollo Hospitals Enterprise announced that it would acquire a 60% stake in AyurVAID, a leading classical Ayurveda hospital chain. The acquisition would be funded by primary and secondary capital injections totaling around USD 3.14 million.

Ayurveda, an ancient Indian medical system, utilizes natural herbs, spices, and plant-derived medicines as a form of alternative medicine. Practiced by 80% of the Indian population, it is also widely used in Sri Lanka, Myanmar, and Nepal. The goal of Ayurveda is to promote overall health without the need for pharmaceuticals or invasive procedures. Ayurvedic ingredients are commonly found in oral care, health supplements, cosmetics, and personal care products, as well as pharmaceuticals.

The market for ayurvedic products is primarily driven by consumer demand for natural, minimal cosmetics and an increasing focus on product innovation. The market for ayurvedic health and personal care products is expected to be dominated by healthcare items, particularly moisturizers for newborn whole-body care. Moreover, an increasing number of women who prefer natural and minimum cosmetics has led to a rise in the global sales of Ayurvedic goods.

Key Insights

• Based on distribution channel, the supermarket held the highest market share
• Based on products, the personal care segment generated the highest market revenue
• On the basis of region, Asia Pacific was the top revenue generator

Increasing Awareness About Adverse Effects of Allopathic Among Consumers to Drive Demand for Ayurvedic Products

The global ayurvedic market is on the rise, driven by consumers' increasing awareness of the negative effects of allopathy and the accessibility, affordability, and benefits of Ayurvedic products. Additionally, growth in medical tourism is expected to further fuel market expansion.

However, challenges such as lack of standardization in manufacturing techniques and inconsistent availability of raw materials may hinder growth in the industry. Despite these challenges, there is potential for growth in developed nations, such as the US, Canada, Australia, Singapore, and Japan. They are anticipated to present the market with potential revenue pockets in the near future, where increased knowledge and understanding of Ayurvedic natural ingredients in health and personal care products is expected to present new opportunities in the near future.

Increasing Demand for Natural and Organic Medicine from Evolving Countries Offering Potential Growth Opportunity for the Market

In many developing nations, Ayurvedic medicine plays a vital role in healthcare, with herbal and natural remedies commonly used for minor illnesses. In these countries, access to skilled physicians and prescription drugs is often limited to serious health conditions.

As a result, the use of unprocessed plants, herbs, or plant parts for Ayurvedic and herbal medicine is prevalent. The potential for the Ayurvedic market lies in the utilization of these herbs as teas for internal consumption, salves, and poultices for external use. This presents an opportunity for the Ayurvedic market to reach new heights in underdeveloped nations.

Segmentation Analysis

The global ayurvedic market is divided into different distribution channels such as pharmacy stores, supermarkets, departmental stores, beauty stores, online, and specialty stores. Supermarkets are projected to hold the largest market share during the forecast period as they are well-known for selling Ayurveda products or services, a one-stop shopping destination with the wide availability of sought-after products.

As consumers are more inclined towards organic ayurvedic goods, chemical-free personal care and healthcare products are leading the industry in terms of specialized features. Supermarkets/Hypermarkets are considered the major hubs for the sale of Ayurvedic products because of the convenience of one-stop shopping and the wide availability of sought-after products.

The global market is segmented into healthcare, personal care, skincare, hair care, oral care, and drugs. The personal care segment holds the largest market share during the forecast period. The increasing awareness of personal care products and changes in lifestyles, and an increase in women's purchasing power are driving the demand for this market segment.

Due to the presence of established Ayurveda manufacturing facilities, the personal care industry is expected to grow with the alteration of consumption patterns and lifestyles, increased knowledge of personal care products, and increased purchasing power among women.

Recent Developments

In June 2021: Marico, a major FMCG company, announced that it acquired 60% share in Apcos Naturals Private Limited for an undisclosed sum. Just Herbs is an ayurvedic cosmetics brand launched in 2010 by Apcos Naturals Private Limited, a company co-founded by Brand Director Megha Sabhlok and CEO Arush Chopra.

In December 2019: Dabur India Limited, the world's leading science-based ayurveda company, announced the release of two ground-breaking products as part of its initiative to make ayurveda more accessible to modern consumers through health-restoring Ratnaprash and the unique medication Hridayasava.

Regional Analysis

Asia Pacific is Dominating the Market Due to Increasing Demand of Herbal Products

The demand for herbal and natural healthcare products is driving the growth of the Ayurvedic market, particularly in the Asia-Pacific region, where high production volume of Ayurvedic goods is expected to generate a significant market share throughout the forecast period. Urbanization in the region is also expected to increase the demand for Ayurvedic products. The United States, Canada, France, China, and Germany are among the leading importers of Ayurvedic products.

The Asia-Pacific region, with its long history of herbal medicine, holds the largest market share, led by India, Myanmar, Indonesia, and Sri Lanka, among others, with a market value of over USD 1,200 million. According to the Ayush ministry, the Ayurveda industry's market size has been growing at a rate of 17% annually in recent years and is expected to reach $23.3 billion by the end of 2022. Furthermore, the global Ayurvedic medicines market is expected to expand due to the adoption of technological innovation by Indian and other regional Ayurvedic medicines manufacturers.

Competitive Landscape

Major manufacturers operating in the ayurvedic industry include Emami Limited, Charak Pharma Pvt. Ltd., Vicco Laboratories, Patanjali Ayurved Limited, Leverayush, Dabur India Limited, The Himalaya Drug Company, SHREE BAIDYANATH AYURVED BHAWAN PVT. LTD., Herbal Hills, Natreon, amongst others.

The global ayurvedic market is segmented as follows:

By Distribution Channel

• Supermarket
• Pharmacies Stores
• Departmental stores
• Beauty Stores
• Online
• Specialty Stores

By Products

• Healthcare
• Personal Care
• Skincare
• Hair Care
• Oral Care
• Drugs

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America