KOCHI: A study by the Confederation of Indian Industry (CII) said the ayurveda sector in the country will achieve a gross market size of $ 4.4 billion, or roughly Rs 30,000 crore by the end of 2018. To add to the bullish outlook, the Indian ayurvedic industry is projected to record a compounded annual growth rate of a robust 16 % until 2025.
The study focused on the market size of the Indian ayurveda industry, its strengths and the way forward. It said as much as 75 % of the $ 4 billion Indian ayurveda market is accounted for by products and only a quarter of the market size is contributed by services. The $ 4 billion domestic market comprises ethical, classical, over-the-counter, personal care and beauty products. It also includes services like medical, well-being or medical tourism services.
A key finding of the study is that India’s ageing population and the rise of a young population that is health conscious, will drive the growth of the ayurveda sector in the country.
The size of the Indian ayurveda industry at Rs 30,000 crore per annum compares well with the overall market size of the Indian wellness industry which is put at Rs 85,000 crore. What is significant is that the Ayurveda sector is poised to grow at high double-digit levels in the coming years, and that it continues to be the most important player in the global ayurveda market.
Two challenges to the sector pointed out by the CII study are a shortage of manpower and shortage of quality raw materials. The industry is facing a shortage of skilled professionals including doctors, paramedical staff, therapists and nurses and there appears to be a lack of uniformity in skill and knowledge among the available manpower. On the raw materials front, there are wide variations in the quality of raw materials as well as a shortage of various medicinal plants and herbs because they are becoming endangered or there is lower production owing to factors such as adverse weather conditions.
The study result has come as Kochi is poised to host the global ayurveda summit from November 21 to 23. The summit will discuss strategies for mainstreaming ayurveda and explore opportunities in the sector for entrepreneurs including start-ups.
The development was reported by ETRetail.com