AYURVEDA
How Would This Industry Bloom During and Post COVID-19 Era? The Re-Emergence Of Ayurvedic Industry Across The Globe. Challenges & Recommendations.
A Trariti Consulting Group Study by Swapnil Roy and Arup Majumdar
Overview Of The Indian Ayurvedic Industry
Ayurveda is the ancient science of health, which incorporates a variety of medicines prepared out of different plant parts or whole plants. These are normally formulations, created with several natural ingredients, and delivered in a soluble base or oil suspension. Availability of proper raw materials has fallen to a dangerously low level due to urbanization and our lack of knowledge in preserving these ayurvedic gems.
The industry was valued at INR 300 Billion in 2018, and is expected to reach INR 700 Billion by 2024, at a CAGR of 16%. The market in India is segmented on the basis of Ayurveda products and Ayurveda services. Products segment accounted for approximately 74% of the market, while the Ayurveda services segment held the remaining 26%. The surge in global demand for Indian natural formulations, the strict lifestyle changes enjoined by Ayurveda, coupled with their purported effectiveness for certain chronic conditions, has brightened the prospects of ‘Ayurveda tourism’ in India.
The Ayurveda market in India consists of several players but there is a lack of proper scientific documentation of traditional Ayurveda practices. Consumers often purchase Ayurveda products based on the quality and reputation associated with a brand name. To encourage Ayurveda, the Government of India is promoting the usage of Ayurvedic products through awareness programmes and subsidies. It has set up a specific AYUSH ministry to lead this initiative.
Global Market
Asia Pacific region accounts for the largest share of the Ayurveda market owing to their rich tradition of herbal medicines led by India, Sri Lanka, Pakistan, Indonesia, Myanmar and others.
India is the largest market and accounts for almost USD $1200 million in terms of market value. India’s exports of Ayurvedic formulations was estimated to be
around. USD $64 million in 2016. The major
exports of Indian Ayurveda include Psyllium
and Senna.
Russia & the US lead the demand for Ayurvedic
products and services, followed by Europe,
where natural remedies are finding increased
favour. According to Euromonitor, words such
as “natural”, “organic”, “free from harsh
chemicals” and “botanic” find increased
acceptance with consumers. In India, traditional
systems are greatly revered, although people
generally shift to modern allopathic
medicines when situations are critical.
Inthe recent past, Ayurvedic clinics have sprung up all across India, offering medicines prescribed by certified physicians trained through reputed ayurvedic institutions. There are also 35 accredited hospitals offering ayurvedic treatments. The AYUSH Ministry has set up the National Institute of Ayurveda in Jaipur, Rajasthan.
Paradigms of Global Ayurveda
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New Age Ayurveda: More openly embraces an array of practices often labelled “New Age”.
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Maharishi Ayur-Ved: It is generally viewed as superior to other forms of Ayurveda, but perceived to be removed
from the traditional practices as stated in the texts.
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Traditional Ayurveda in an urban world: It is closest to a recognizable medical practice based on scientific and
practice-based norms.
Ayurvedic Industry Post-COVID
Government of India’s Ministry of AYUSH has taken the lead in recommending preventive measures. To quote from its website, “Ayurveda, has an extensive knowledge base on preventive care, derived from the concepts of “Dinacharya” - daily regimes and “Ritucharya” - seasonal regimes to maintain a healthy life.”
In the post-COVID world, consumers are carefully and actively
considering immunity-boosting products which will help them fight the
eventuality of infection. Social media has played an active role in this,
promoting the regular intake of Vitamin-rich health foods, a daily
regimen for intake of such foods, and active promotion of natural
ingredients used at home. However, consumers who have little time to
make these concoctions at home are actively seeking out readymade
formulations, which is the cause for the sudden spurt in consumer
buying.
Companies that sell such products said that customers who have
rushed to purchase hand sanitizers and disinfectants will boost growth
for such goods in India. Packaged consumer goods firm Dabur India
said it has advanced the launch of an immunity-boosting health product
given the new focus on preventive healthcare.
The importance of preventive healthcare, particularly with Ayurveda,
and of personal hygiene will grow in the consumer mind space.
Consumers are keen to boost immunity through preventive medication rather than going in for expensive and distressing post-disease treatments. The health-food drinks category is an example, and has been growing steadily in India and there is huge growth potential to increase category penetration.
Market Study
An in-depth market study by Trariti Consulting Group tested 7 hypotheses through both primary and secondary research across India.
The Study presents seven hypotheses related to the perception and adoption of Ayurveda among the general population. The first hypothesis suggests that people believe in Ayurveda only if it can cure long-term illnesses, but they opt for other medicines when faster relief is needed.
The second hypothesis proposes that people don't go towards Ayurveda due to a lack of proper knowledge about doctors and their specialization. However, the data analysis suggests that people resist Ayurveda treatment as they want a quicker and faster solution for their ailments.
The third hypothesis assumes that age plays a significant role in Ayurveda treatment, but the data collected in the report shows no relation between age and the adoption of Ayurveda. The fourth hypothesis proposes that people's income level affects their preference for Ayurveda treatment, but the data collected shows no significant relationship between income and choosing Ayurveda treatment.
The fifth hypothesis suggests that the availability of Ayurvedic medicines ensures more sales for that particular brand, but the data analysis shows that people go for products that are easily available to them, and brand popularity is also an essential criterion. The sixth hypothesis assumes that creating awareness about Ayurveda will make rural people accept Ayurvedic products, but the data presented in the report shows that awareness about the product is the most critical criterion.
Finally, the seventh hypothesis proposes that people perceive Ayurveda as just another source of medication. However, a lot of consumers shift towards Ayurveda as they want to try natural medicines instead of chemical-based ones.
Based on the research findings and opinions of leading practitioners, the report suggests that Ayurveda can reach poor urban, modern, materialistic people by teaching them Dinacarya and Ritucarya using accessible language. It also emphasizes the need for policy-level decision-making to set new standards, self-regulation by the players in the Ayurveda sector, and promoting the generic benefits of Ayurveda. Consumers should buy from reliable companies and check international restrictions on the use of these products.