There is a shift in consumer preference in terms of wellness products. The Indian consumer prefers more of ayurveda products over the chemical products.
A study made by the Confederation of Indian Industry (CII) states that 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 ayurveda industry is projected to record a compounded annual growth rate of a robust 16 % until 2025.
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.
The customer is much aware and which is causing the rise of demand for the ayurveda industry in India.
However, there are two major challenges, identified by the CII study that are pulling the business down or resisting the growth. They are:
Shortage of manpower:
Manpower is one of the major parts that contribute to successful running any business. Ayurveda industry comprises running ayurveda spa, ayurveda hospitals, making products and running the stores, which require skillful professionals, doctors, nurses, therapists and medical staff etc.
The CII study reveals, “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.”
Shortage of quality raw materials:
Ayurveda uses plants and plant products, which grow only in some region, where the atmosphere, weather and soil favor the growth of the plant. Due to urbanization, rapid deforestation, the industry is facing the crisis of raw materials.
The CII study shows, “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.”
