Here’s an overview of the different facets of the wellness industry of India that have emerged in 2016 and are set to go bigger in 2017.
The Indian beauty and wellness market, pegged at over a trillion dollar in 2016, is said to be growing by over 20 per cent each year. Wellness and beauty brands have now started stretching out to Tier II and III cities as well. Changes in lifestyle and consumers becoming more health conscious are primary factors that have added to the growing demand for not just services but health products too.
Troy Franklin, COO, World Franchise Associates – Southeast Asia, has been observing each industry grow closely. “Beauty, health and wellness is the fastest growing sector in franchising, both globally as well as in India,” he says.
As the growth of this sector keeps getting better, newer trends are making their way fast into this market, transforming it and opening up better avenues. The year 2016 has seen many such avenues become bigger areas for growth. Here’s an overview of the different facets of the wellness industry of India that have emerged in 2016 and are set to go bigger in 2017.
The herbal biz
The new buzzword in the Indian beauty and cosmetics market is ‘organic’. It has been observed that the Indian consumer is becoming more inclined towards all things natural, organic and herbal when it comes to skin care, personal care and make-up. According to promoter sisters of Azafran Innovacion Ltd, the organic skincare market in India is expected to cross the Rs. 1,000-crore mark by 2020. With the consumer becoming more aware and driven towards beauty and wellness, this market is growing at 20-25 per cent Year on Year in India.
In that context, the brands in the business of beauty are also becoming more consumer-driven, customising products based on the consumers’ needs and demand. From The Body Shop to Biotique, brands are continuously making efforts to get closer to the consumer for a personalised organic experience.
The beauty revolution
Not only have salons increased their footfalls, the business of beauty is witnessing a revolution like never before. Brands launching make-up app, exclusive stores and at-home beauty services are catching up investors’ attentions too.
Meanwhile, beauty salons have started expanding into tier-II and III cities. Operational costs for service providers are also low as compared to smaller towns. Additionally, service providers have started exploring new venues for rejuvenation like airports and hotels.
Spas expand northwards
India has one of the fastest growing spa markets in the world. This sector has shown a steady growth and continues to get bigger with an 8 per cent CAGR Year on Year. Increase in disposable income, flourishing tourism and the rise of Ayurveda are some of the top factors that have contributed to the growth of the spa business in India.
The southern states of Kerala and Karnataka dominate the spa industry of India as Ayurveda has strong roots in these two states. However, some of the best spa experiences remain in the North. In fact, spa leaders in the southern regions of India, like Kairali, Adara and Keva, are now looking at growth in the northern regions like Himachal Pradesh, Uttarakhand etc. scouting for franchisees in these areas. This points at the spa market spreading across India than being restricted to one part of the country.
Yoga becomes a franchise
The 5000-year-old practice of Yoga is a booming multi-billion dollar market worldwide today. India grabs a small pie in this $80 billion industry. This, even as the practice finds its origins in the Vedas in India. But the industry is now picking up and is worth over Rs 490 billion in India.
As the business becomes bigger, franchising in the Yoga industry has become a trend to make the practice and brand reach every part of not just the country, but also the world.
Evaluating the growth potential that Yoga holds, players in this segment are opening themselves to the idea of franchising aggressively. “Franchising keeps the cost of acquisition and the cost of investment low. It offers tremendous opportunity to become entrepreneur especially for women. 80 percent of the yoga practitioners are women in India. The speed of growth if executed right is much higher,” says Yashwant Saran, Founder & M.D, 136.1 Yoga.
A similar growth story is that of Zorba: A Renaissance Studio. The yoga studio was set up in 2013 and started franchising in 2014. There are now 20 studios under the label and many more coming up in the near future.
Nutraceuticals: The opportunity hub
The nutraceuticals industry in India is worth $2.2 billion and is expected to grow at 20 per cent to reach $6.1 billion by 2020. It consists of three segments – dietary supplements, functional foods and functional beverages. In the past few years, the market has grown wider. It has moved on from just having vitamin and mineral supplements to also including protein shakes, fat burners and much more. A major portion of this market is now functional foods and beverages that serve as meal replacements, protein supplements and more.
What’s making this segment a hub of opportunities is the emergence of pure-play nutraceutical brands as potential players who are not just setting shops, but are also expanding through the route of franchising and distribution. These include names like Body Building India and Flabthugs.
Seeing the rising demand, many major pharmaceuticals and FMCGs have taken the nutraceuticals route in the past few years. Players like GlaxoSmithKline and even Ayurveda brands like Patanjali and Baidyanath have introduced nutritional supplements like protein powders, energy bars, soya milk and much more.