Ayurveda Market Poised for Explosive Growth, Projected to Hit USD 40.7 Billion by 2033 Owing to Consumer Shift to Natural Health Solutions Drives Market Expansion

The Global Ayurveda Market is projected to grow substantially, with estimations suggesting it will reach a value of approximately USD 40.7 Billion by 2033, up from USD 9.4 Billion in 2023. This growth is anticipated to occur at a robust (CAGR) of 15.8% during the forecast period spanning from 2023 to 2033.

The Ayurveda Market is a global marketplace for products and services based on Ayurveda, a traditional Indian medicine system. Key components include herbal products, personal care products, dietary supplements, medicines, and wellness services. The market's growth is driven by consumer interest in natural health solutions, awareness of traditional medicine, and the expanding wellness industry. The market is particularly strong in countries with Ayurvedic traditions but is also gaining popularity in North America, Europe, and Asia-Pacific.

Segmentation of the Ayurveda Market

In 2023, the herbal category dominated the market with 39.7% of revenue, driven by growing consumer interest in natural and organic products, increased knowledge of herbal supplements, and a preference for preventative healthcare. Herbal supplements treat various health conditions, including stress and digestive issues. The herbomineral segment is expected to grow at 28.2%, driven by public awareness of the benefits of Ayurvedic products and Ayurvedic practices.

In 2023, the skin and hair category led the market, driven by demand for Ayurvedic skincare and haircare products. Consumers are becoming more aware of the ingredients in these products, and celebrity and influencer endorsements have contributed to their growth. The infectious illness segment is expected to grow at the fastest CAGR due to new Ayurvedic medicines and therapies for infectious diseases.

The personal segment led the market in 2023, with personalization becoming a major trend. Ayurvedic personal care products are popular due to their specific doshas or body types. Indian Ayurvedic company TotalAyurvedaCare.com introduced a telemedicine platform in 2020, offering comprehensive medical care and therapy tailored to each patient's unique needs.

In 2023, the clinics segment dominated the market due to the growing demand for Ayurvedic medications and therapies. Access to trained practitioners and clinics has fueled market growth. Numerous organizations and universities provide Ayurvedic training, increasing the number of trained practitioners. The All India Institute of Ayurveda (AIIA) has partnered with international organizations to promote evidence-based research, clinical trials, and patient care. The academia and research sector is expected to grow at the fastest CAGR due to increased interest in Ayurveda. The World Health Organization (WHO) and India established the WHO Global Centre for Traditional Medicine in March 2022.

In 2023, direct sales led the market with the highest revenue share due to increased awareness of Ayurvedic products. This segment offers tailored product recommendations, improving customer experience and revenue. The e-sales segment is expected to grow at the fastest CAGR due to technology integration and increased availability of Ayurvedic products. Amazon India opened a special storefront in February 2022 to promote Ayurvedic products.

Growth Factors of Ayurveda Market

Ø  Rising Health Awareness: Increasing awareness about the benefits of natural and holistic health practices is driving more people to adopt Ayurvedic treatments. As consumers become more health-conscious, they are seeking natural alternatives to conventional medicine, boosting demand for Ayurvedic products and services.

Ø  Growing Preference for Natural Products: There is a significant shift towards natural and organic products across various sectors, including healthcare. Ayurveda, with its foundation in natural ingredients and holistic healing, is gaining popularity among consumers looking for safe and chemical-free alternatives.

Ø  Increasing Chronic Diseases and Lifestyle Disorders: The prevalence of chronic diseases and lifestyle-related disorders, such as diabetes, hypertension, and obesity, is on the rise. Ayurveda offers effective management and treatment options for these conditions, which is driving its adoption among patients seeking alternative therapies.

Ø  Government Initiatives and Support: Many governments worldwide, especially in countries like India, are actively promoting Ayurveda through various initiatives and policies. Support from government bodies for research, education, and integration of Ayurveda into the mainstream healthcare system is significantly contributing to market growth.

Ø  Integration with Modern Medicine: The integration of Ayurvedic practices with modern medicine is creating new opportunities for market expansion. Collaborative efforts between traditional Ayurvedic practitioners and modern healthcare providers are leading to innovative treatments and increasing acceptance of Ayurveda.

Ø  Globalization and Export Opportunities: The globalization of Ayurveda and the increasing export of Ayurvedic products to international markets are driving market growth. Countries worldwide are recognizing the potential of Ayurveda, leading to a rise in demand for Ayurvedic products and therapies on a global scale.

Ø  Technological Advancements: Technological advancements in the production and formulation of Ayurvedic products are enhancing their efficacy and shelf life. Innovations in extraction, packaging, and delivery methods are making Ayurvedic products more appealing and accessible to consumers.

Ø  Celebrity Endorsements and Media Influence: Endorsements by celebrities and increased media coverage of Ayurvedic benefits are raising awareness and interest among the general public. Influential personalities advocating for Ayurveda help reach a broader audience and boost market growth.

Regional Analysis

The global Ayurvedic market is gaining momentum in North America due to a growing preference for natural and organic products. The US has seen significant changes in organic agriculture, with certified organic cropland increasing by 79% and organic retail sales growing by 8%. The European Ayurvedic market leads the global industry, with over 29.8% market share in 2023. This is due to the growing acceptance of holistic medicine and the popularity of yoga and meditation. Emerging competitors like Dabur, Himalaya Herbal Healthcare, and Maharishi Ayurveda are entering the European market. The Asia Pacific Ayurveda market is expected to experience significant expansion due to the growing popularity of Ayurvedic practices in daily routines and the growing demand for natural and organic products. The Ministry of AYUSH (Ayurveda, Yoga & Naturopathy, Siddha, Unani, and Homeopathy) in India signed 25 Memorandums of Understanding in February 2021.

List of Market Segmentation

By Form

·

o   Herbal

o   Mineral

o   Herbomineral

By Indications

o   GI Tract

o   Infectious Diseases

o   Skin/Hair

o   Respiratory System

o   Nervous System

o   Cardiovascular System

o   Other Indications

By Application

o   Medical/Therapy

o   Personal

By End-Use

o   Hospitals

o   Clinics

o   Academia & Research

By Distribution Channel

o   Direct Sales

o   E-sales

o   Distance Correspondence

Competitive Landscape

o   Kerala Ayurveda Ltd.

o   Vicco Laboratories

o   Dabur Ltd.

o   Patanjali Ayurved Limited

o   Natreon Inc.

o   Bio Veda Action Research Co.

o   Himalaya Wellness Company

o   Emami Group of Companies Pvt Ltd

o   Baidyanath

o   Amrutanjan Health Care Limited

o   Other Key Players