Ayurveda's FMCG share remains low despite rising household use
Ayurveda, India's traditional healthcare system, accounts for just over 1% of the country's overall fast-moving consumer goods (FMCG) market despite leading companies launching hundreds of natural and herbal personal care products over the past few years.
While 92% of Indian households purchased ayurvedic products in 2024-25 compared to 89% five years ago, the contribution of the segment to the total FMCG volume increased to 1.1% from 0.8% during the period, according to a new exclusive report by Kantar, consumer insights arm of WPP.
Moreover, in 2024-25, sales of ayurvedic products by volume fell 1% year-on-year, its first decline ever, a sharp reversal from the high double-digit growth in recent years on the back of the meteoric rise of Patanjali, an Ayurveda-based brand by yoga guru Baba Ramdev and the Covid-19 pandemic-driven affinity for natural products.
"Ayurvedic brands grew during the pandemic as consumers shifted focus on immunity. But most brands talk about natural ingredients and not many companies talk about ayurveda. In FY24, Patanjali drove the category growth and in FY25, their performance dragged the numbers down. While there are temporary hiccups, there is interest in the sector," said K Ramakrishnan, managing director, South Asia, Worldpanel Division.
"While not falling under the traditional FMCG bracket, products with ingredients such as ashwagandha, triphala, shilajit are selling D2C (direct-to-consumer) and even on Q-Comm (quick commerce) channels, reaching the urban upper sections of society."
Ayurvedic brands are those which use traditional principles and methods of ayurveda, while natural brands just add a few natural or herbs to their products.
Dabur
's sales increased 3% year-on-year in 2024-25, Himalaya and Cholayil expanded 7.5% and 1.3%, respectively. However, sales of both Patanjali and Vicco fell 4% year-on-year, impacting the overall segment growth, said Kantar.
"We have been taking steps to drive penetration of our healthcare brands and expanding the need state beyond immunity by getting into new areas like combating stress, digestion etc., besides expanding the consumer cohorts and increasing usage occasions. These have helped our key Ayurvedic brands maintain their momentum and record market share gains," said Dabur CEO Mohit Malhotra.
He added that the company continued to add new products and offer age-old ayurvedic remedies in modern formats to better connect with the millennial consumers.
Almost every household in India purchases at least one ayurvedic brand. with Dabur having the highest penetration (81%), followed by Patanjali (58%), according to Kantar.
However, Patanjali, due to its presence across many categories, dominates with a higher volume share.
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