CII: India's Ayurvedic industry to grow to $4.4 billion by end of 2018

By

Isabelle Crossley

Published
Nov 20, 2018

A study conducted by the Confederation of Indian Industry (CII) has predicted that the Ayurvedic industry in India will reach a gross market size of $4.4 billion (Rs 29,272 crore) by the end of the calendar year.

According to the CCI, India’s Ayurvedic industry will not only go towards Rs 30,000 crore by the end of 2018 but will also record a compound annual growth rate (CAGR) of 16 percent each year until 2025. ET Bureau reported that the study, which looked at the size of the Ayurvedic market in India, strengths, and way forward, reported that growth in the sector is encouraged by India’s ageing population and a new generation of health-conscious young Indians.

The CCI included a number of product categories in what it calls the domestic “Ayurvedic market”. These include personal care and beauty products, over-the-counter medicines, and ethical products as well as services including medical and wellbeing services. The CCI found that products make up the most part of the category at 75 percent with services making up 25 percent.

Despite high growth rate predictions, the CCI survey also reported challenges to India’s Ayurvedic industry. The two greatest challenges reported were a lack of required skilled manpower (such as medical professionals) and a shortage of high-quality raw materials. Some medicinal plants are becoming endangered or are affected by adverse weather conditions.

The study was released ahead of the Global Ayurveda Summit that kicks off today in Kochi. The summit will run until November 23 and will see industry leaders discuss strategies for expanding the Ayurvedic market.