Big ad spends, Baba Ramdev help Ayurveda clinch 41% of the Rs 45K crore personal care market in India
Backed by some big ad spends, herbal and ayurvedic products have managed to command a staggering size of the 45K crore personal care market in India
Published - 01-August-2017
Published - 01-August-2017
In the last few years ayurvedic and herbal-based products have witnessed a steep rise in consumption. According to a recent Nielsen report, the herbal and ayurvedic category grew 6.6 per cent last year to become a Rs 18500 crore market, which is almost double the pace compared to regular products. The report further stated that homegrown companies contributed the most to the growth as 79 per cent of natural brands are made by Indian-origin firms while multinationals contribute the rest.
Big ad spends
One of the biggest factors for this trend has been the rise in ad spends in the category. For example Baba Ramdev’s Patanjali alone has set aside Rs 300 crore to promote ayurvedic products this year. Other major FMCG players like HUL are spending big to promote this category too. There is no doubt that Patanjali has helped the market grow significantly.
Even companies such as Dabur and Emami, which already have strong ayurvedic product portfolios, are looking for big growth. Few years ago, Emami acquired premium hair oil brand Kesh King from SBS Biotech for Rs.1651 crore as part of its scale up strategy.
Last year Bio Veda Action Research Co. set aside Rs 250 crore for advertising and marketing its ayurvedic personal care products brand Biotique. In the same way, Himalaya Drug Co. has increased its advertising budget by about 25 per cent year-on-year in the past couple of years.
The popularity of herbal and ayurvedic products has also inspired international brands to take the natural route. In 2016, French cosmetics giant L’Oreal announced its plans to launch a herbal hair care range to build its herbal portfolio in the country.
The Patanjali effect
According to analysts, herbal and ayurvedic consumer goods segment is the fastest growing as a large number of Indians are shifting from chemical-based products to herbal-based products.
Explaining this robust growth in the herbal and ayurvedic category, Sudhir Aggarwal, Corporate Member, Patanjali Yogpeeth Trust, said, “Primarily the reason for this growth is the thrust given by Swami Ramdevji. He is promoting our traditional culture instead of the allopathic practices and helped raise awareness about the benefits of using herbal and ayurveda products. Moreover, few years back there was limited availability of ayurvedic products but now the scenario has changed. These factors have played a role in the increasing consumption of herbal and ayurvedic products.”
Another report by Euromonitor International stated that competition in the natural, herbal and ayurvedic market within beauty and personal care in India is expected to remain intense. “Mass brands such as Dabur, Emami and Patanjali are expected to continue to educate consumers about the benefits of using natural products through product promotions and in-store displays,” said the report.
Manish Bhatt, Founder Director at Scarecrow Communications, believes that Patanjali and Baba Ramdev have been the two biggest factors in fuelling this growth. “Thanks to Baba Ramdev and his brand Patanjali, people are becoming lifestyle conscious and this is helping the herbal and ayurvedic category grow in a big way,” stated Bhatt.
Patanjali's exemplary rise in the last few years has shifted the focus on herbal and ayurveda products with top MNCs taking note of Baba Ramdev’s success formula and adopting it too. Moreover, the brand has taken a very nationalist view of its business, which has helped it become easily acceptable.
Speaking about the factors that have ensured aggressive growth in this category, Pankaj Krishna, CEO & Founder Brickworks, which is a technology-driven market research firm, said, “Patanjali has actively promoted the use of natural ingredients in FMCG products and this has done well for the category and is resonating across companies like Hindustan Uniliver etc. Moreover, today’s consumers are not limited by the cost factor when it comes to choosing something which is natural and healthy over artificially added ingredients. This lifestyle shift is helping the herbal and ayurvedic brands in big way.” For more updates, be socially connected with us on
WhatsApp, Instagram, LinkedIn, Twitter, Facebook & Youtube