Ahmedabad: The demand for ayurvedic and herbal cosmetics and grooming products has surged in Gujarat’s major cities over the past five years. This is due to their natural ingredients, fewer side effects, and noticeable health benefits.
The overall market for ayurvedic products has grown at a compound annual growth rate (CAGR) of 12-15% in the last five years. Nutraceutical products have seen a CAGR of around 8-10%, with Gujarat ranking fourth in India.
According to the Gujarat Ayurved Aushadh Manufacturers Association (GAAMA), the combined market size of nutraceuticals and ayurvedic medicine in India shows significant growth and market potential.
The Ayush industry reached USD 18.1 billion (approximately Rs 1,49,451 crore) in 2020, up from USD 2.85 billion (approximately Rs 23,532 crore) in 2014-15.
Furthermore, the traditional medicine market in India was valued at USD 27.53 billion in 2023 and is projected to expand to USD 73.19 billion by 2031, with a growth rate of 13% during 2024-2031, according to GAAMA data.
In addition, India’s nutraceuticals market is expected to grow at a robust rate of 20.35%, increasing from USD 11.78 billion in 2023 to USD 51.83 billion by 2031.
GAAMA President, Hardik Ukani, told Mirror, “These figures highlight the substantial market size and rapid expansion of India’s nutraceuticals and ayurvedic sectors, driven by increasing consumer demand and favourable market conditions post-COVID. Therefore, Gujarat stands at the fourth rank in India for manufacturing and sales of both segments.”
Ukani, who is also MD of Vasu Healthcare, added, “Gujarat, a hub for the pharmaceutical industry, and holds a share of 12% in the ayurvedic and approximately 20% in the nutraceutical industry in India.”
He added, “In Gujarat, there are around 850 ayurvedic manufacturing companies, which is 10% of India’s total 8,500 units. Over 1,200 nutraceutical manufacturing plants are based in Gujarat as it is a significant hub for both industries.”
According to GAAMA, Ahmedabad, Vadodara, Ankleshwar, Bharuch, Vapi, and Valsad are the top districts in the state for ayurvedic and nutraceutical manufacturing. They have a high concentration of companies due to their established industrial infrastructure and access to resources.
According to GAAMA data, women across various age groups are the primary users, followed by young adults and men, particularly for beard and hair grooming. Young adults, aged 18-35, prefer products for skin and hair health, and for wellness.
Similarly, middle-aged adults, aged 36-50, use anti-ageing and skin rejuvenation products, whereas the elderly, over 50, prefer gentle formulations with potential therapeutic benefits for sensitive skin or ailments.
As of 2022-2023, India exported $628 million of AYUSH products. In the case of nutraceuticals, India exports $1.5 billion of nutraceutical products. India’s export of Ayurvedic products has increased at a rate of 12% from 2021 to 2023. Gujarat contributes about 18% of the country’s total ayurvedic medicines export.
