Ayurveda Sector: Rs 1.2 Lakh Crore by FY28

India’s Ayurveda market is on the cusp of a golden age, poised to reach a staggering ₹1.2 lakh crore (USD 16.27 billion) valuation by FY28, according to a recent study by NirogStreet. This translates to a phenomenal leap from the current market size estimated at ₹57,450 crore (USD 7 billion). But what’s fueling this remarkable growth?

Consumer Demand Meets Government Support

The rising global demand for natural healthcare solutions is a key driver. Consumers are increasingly seeking alternatives, and Ayurveda’s core principles of plant-based ingredients and holistic wellness perfectly resonate with this trend. NirogStreet predicts a robust CAGR of 16% for the Ayurveda product segment alone, reflecting the burgeoning demand for these natural remedies. The study estimates the Ayurveda product market to reach a value of ₹1,00,700 crore (USD 13.7 billion) by FY28.

Adding further momentum is the strong backing of the Indian government. Initiatives like establishing the AYUSH ministry and fostering research and development collaborations with scientific bodies like the CSIR are paving the way for advancements in the field. Additionally, efforts to integrate Ayurveda into mainstream healthcare through insurance coverage and hospital inclusions are fostering wider acceptance.

A Thriving Manufacturing Hub with Global Aspirations

NirogStreet’s study also sheds light on the robust Indian Ayurvedic manufacturing sector, currently valued at a noteworthy ₹89,750 crore (USD 11 billion) in FY22. This signifies a well-established industry with the capacity to cater to the anticipated surge in demand. The survey further reveals a thriving ecosystem with around 7,500 manufacturers spread across 10 states, including Uttar Pradesh, Bihar, Madhya Pradesh, and Kerala. This geographical distribution indicates a strong domestic manufacturing base.

However, the study also identifies an import activity of approximately Rs 8,600 crore (USD 1 billion) in FY22. This suggests an opportunity to further strengthen domestic manufacturing capabilities to meet the growing global demand. With its unique approach to wellness, Ayurveda holds immense potential to capture a significant share of the international market. The projected increase in international demand for Indian Ayurveda products is expected to be a significant contributor to the overall market growth.

The Rise of Ayurveda Services

The growth story isn’t limited to products. The Ayurveda service sector, encompassing consultations with practitioners, treatment facilities, and wellness programs, is also poised for significant expansion. NirogStreet predicts a CAGR of 12.4% for this segment from FY23 to FY28, indicating a rising demand for holistic wellness experiences and consultations with qualified Ayurvedic practitioners.

A Blossoming Ecosystem for Tech-Driven Ayurveda

The Ayurveda market is further bolstered by a burgeoning startup ecosystem that leverages technology to enhance various aspects. These include online sales platforms, tele-consultations with practitioners, and the development of Ayurveda-based mobile applications. This tech integration is expected to grow at a rate exceeding the overall market growth.

The Road to Global Leadership

While the future of India’s Ayurveda market appears bright, there are challenges to navigate. Standardization, quality control, scientific validation, and strategic marketing are key areas that require focus. By addressing these challenges, India’s Ayurveda product market has the potential to not only reach the projected value of ₹1.2 lakh crore by FY28 but also emerge as a global leader in the natural healthcare domain. This ancient Indian system of medicine has the potential to offer a unique and valuable addition to the world’s healthcare ecosystem, fostering a more holistic approach to wellness.

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