Ayurveda, country’s oldest medical science finds a new market, consumer goods and cosmetics. Ayurveda has always been in the forefront in promoting eco-friendly products in the consumer space, be that daily kitchen products like honey and ghee or different cosmetic products based on natural ingredients like turmeric and sandalwood. According to Nomura, the Japanese broking firm, the market size of Ayurvedic products in Asia’s third largest economy, India is expected to grow at 15% between 2016 and 2020. In the last five years, the market has grown at a compounded annual growth rate of 10.7%.
Ayurveda is an ancient Indian medicinal system that mostly uses herbal and mineral-based medicines to treat an extensive range of ailments. Though its current consumer goods market is still small – around Rs 5 crore – the opportunities are significant. For instance, a consumer goods company, founded by a yoga guru, is now among India’s top 10 FMCG firms (by revenue) and is rapidly expanding. The USP of any company promoting such ayurvedic products is that all its products are free of many unhealthy chemicals – including Monosodium Glutamate – found in brands of many other FMCG majors. In fact, ayurvedic organizations are exploring more lucrative markets, starting from instant noodles & pasta to soaps and even biscuits, all claiming to be herbal based and free of artificial chemicals.
Cosmetics like hair oils and facial creams are also finding takers from these brands. In an age where the mantra is on being as eco-friendly as possible and to shun harmful chemicals, these products are aggressively being marketed and are finding favor with the consumer, who is very conscious of the ingredients being used in manufacture of his daily used products. Leading Ayurvedic hospitals in Kerala have promoted the use of herbal cosmetics and kitchen products and have found many takers amongst the ever increasing ecologically conscious public.