Jaipur 03.03.24
I am two months into my India travels and as a yogi, athlete, foodie and market researcher I can't help but get excited with the large amount of ayurvedic products (i.e. good for your health) out there. You can find specially beauty care, health care and food related ayurvedic products. Research shows that 80% of all sales of Ayurvedic products come from India.
Ayurvedic products can be found virtually in almost every shop in the country. Even more predominantly in Southern regions such as Kerala, Goa, and Tamil Nadu where the warm weather allows to grow a wider range of herbs, fruits and vegetables compared to the Northern states.
Supermarkets, mini markets and mom & pop stores sell more mainstream options coming from big Indian brands such as Himalaya (my favourite one!), Dabur, Organic India, Indulekha (i.e. own by Unilever Hindustan) and Patanjali. Please a few examples below.
Specialised Ayurvedic shops (picture below) make their own products based on the health requirements of each person.
Also, Ayurvedic massage parlours offer a service called "panchakarma" where natural products are used to treat illnesses.
Why Ayurvedic products and services are so popular in India?
Ayurveda is an ancient Indian medicinal system. Ayurveda means the science and knowledge of life.
The ayurvedic practice is five thousand years old and its roots are from India.
Ayurvedic treatments are so popular as they can holistically heal you. It not only treat your illness (i.e. damage control) but also protect you (i.e. prevention). Western medicine is more focused on the former.
WHY is important to keep an eye on the ayurvedic products space?
Over the next decade, I think we are going to find more Ayurvedic related brands in Western countries. From my perspective, brands have understood that consumer behaviours and attitudes are shifting fast.
"Western society is slowly but surely moving away from a "WELLNESS" oriented culture to a "WELLBEING" one where people actively decide to take care of their health in a holistic manner. Where finding balance amongst the body, mind and spirit and finding happiness is of paramount importance".
The above mentioned trend has accelerated worlwide after Covid-19 as people are focusing more on their diet, nutrition intake, and how they can possibly boost their immunity and overall health.
Signs of the above mentioned shift can be observed across the board. Please find below some market size figures and facts that can help you understand the potential of this space.
• The global Ayurvedic market size is projected to reach USD 16 billion by 2028, from USD 7 billion in 2021, at a CAGR of 12% during 2022-2028.
• Pilates & Yoga Studios market size is anticipated to reach USD 1,121 Billion by the end of 2036, growing at a CAGR of 10% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of pilates & yoga studios was over USD 325 Billion."
• Puig, who's a large fashion and fragrance business is supporting the expansion of Kama Ayurveda into global markets including the UK in early 2023
HOW can brands SUSTAINABLY capitalise on this?
In my opinion, the top 3 things international companies can do to sustainably capitalise on this are below.
• DRAW INSPIRATION from Ayurvedic brands in India but don't become a copycat.
I suggest brands to define or redefine their unique selling proposition based on their local heritage and the healing properties of the herbs & spices available in their region which are usually more fit to meet the health needs of that population. L'Occitane en Provence is the first Western brand that comes to mind in regards to that. The firm's unique selling proposition is supported by its know how using lavenders for healing/medicinal purposes.
An extra benefit of the above mentioned suggestion is that using local herbs & spices will help brands reduce their products carbon footprint.
• Get a thorough understanding of HOW to tap into the WELLBEING space as it's a lifestyle not an easy product choice.
Exploring what people understand by Wellbeing and in context of your brand is so important. From experience, wellbeing oriented brands are focused on communicating the end benefit of their products (e.g. herbal tea to relax and reduce anxiety) rather than talking about themselves and their product benefits (e.g. nutritional bar with 20 grams of protein and sugar free or shampoo with no parabens).
• Create a marketing plan (6 Ps) that is congruent with the Ayurvedic values and the protection of nature.
If brands want to be perceived as authentic in this space their marketing touch points need to transpire the Ayurvedic values so before introducing a new product into the market firms could consider to introduce plastic free or biodegradable packaging, get a B coorporation certification, etc.
I hope the above mention post sheds new light into this interesting topic. Also, keep an eye on this industry as I believe it will be a very active and exciting one check during the years to come.
Wishing you a blissful day!
Luis
Resources:
1) 8 Powerful Ayurvedic Herbs With Their Great Benefits
https://pharmeasy.in/blog/8-powerful-ayurvedic-herbs-with-their-great-benefits/
2) Is there a difference between Wellness and Wellbeing?
https://www.meraki-bws.com/articles/is-there-a-difference-between-wellness-and-wellbeing#:~:text=According%20to%20the%20Oxford%20Dictionary,/psychological%20well%2Dbeing%27.
3) Ayurvedic Market Size In 2023 : Growth Opportunities and Future Outlook 2030
https://www.linkedin.com/pulse/ayurvedic-market-size-2023-growth-opportunities-future?utm_source=share&utm_medium=member_android&utm_campaign=share_via
4) Pilates & Yoga Studios Research by Research Nesters
https://www.researchnester.com/reports/pilates-yoga-studios-market/5414#:~:text=Pilates%20%26%20Yoga%20Studios%20Market%20size%20is%20anticipated%20to%20reach%20USD,was%20over%20USD%20325%20Billion.
5) A Spanish conglomerate acquires majority stake in Kama Ayurveda
https://www.vogue.in/beauty/content/puig-acquires-majority-stake-in-kama-ayurveda
6)https://www.financialexpress.com/business/industry-fmcg-firms-focusing-on-ayurveda-and-immunity-boosting-products-amid-pandemic-2427308/
