The Indian Ayurveda industry is expected to reach US $8.0 billion by 2022
India’s oldest medical system, Ayurveda, has been flourishing for the last 5000 while witnessing many waves of evolution. Ayurveda is set to grow into one of the most innovative growth markets in the global healthcare domain. The size of the global Ayurveda market is expected to reach US$9.7 billion by 2022, at a CAGR of 16.2%. While in India the industry is forecast to rise three-fold from US$2.5 billion in 2015 to US$8.0 billion by 2022.
Although the nascent Ayurveda market is witnessing significant growth, the industry still combats challenges that need to be overcome. Some of the major challenges in the Ayurveda Industry are:
For Ayurveda to become a mainstream life science, validation of Ayurvedic principles (by using modern guidelines) will make it more acceptable to society. Ayurveda faces a crisis in standardising its medicines with respect to branding and consistency and the wide range of big and small retailers at the regional and national levels. To launch Ayurveda on a global scale, standardisation and quality control are essential.
Lack of awareness
There is a huge market potential for Ayurveda globally, but it has not been tapped effectively. There seems to be a mismatch between the rate of growth of demand for services. Lack of basic infrastructural facilities and the availability of high-quality medicines reduces the growth opportunities for Ayurveda. There is a dire need to market Ayurveda products effectively. Also, it is necessary to create awareness about ayurvedic products and services. As, players face a challenge in creating awareness of the differences between Ayurvedic, organic and natural products and services.
Procurement of raw materials
Procurement and development of raw materials need to be improved without any lacunae in the quality and fundamental methods of Ayurveda. Today, farming practices have drastically deviated from age-old traditional ways, with an increase in the use of pesticides, herbicides and insecticides that are often seen as solutions to safeguard and increase productivity.
Use of Technology
Use of technology is playing a significant role in the modern era of medical Ayurvedic practice, and is creating many avenues for prevention of ‘overtreatment’. It has accelerated diagnoses and enhanced effective treatment strategies. Lack of or slow incorporation of technology may pose a challenge to Ayurveda, but this can be its strength - products and services could be made more easily available and accessible by the use of technology.