Ayurvedic skincare mkt booming in India as global demand grows

Ayouthveda is the three-year-old India's new-age Ayurvedic skincare and beauty brand that is transforming the industry with its innovative products and holistic approach, providing a comprehensive range of skincare and beauty products that harness the potent ingredients and principles of Ayurveda, combined with the latest advancements in science and technology. It has already established a widespread reach encompassing more than 20,000 retail outlets and over 210 distributors, ensuring extensive coverage in 250 cities across India. The company has also experienced nearly 25 per cent business growth over the years. The company is gearing up to be registered in the European Union, with over 30 products available in countries such as Hungary, the UK, Uzbekistan, Moldova, Kazakhstan, Kyrgyzstan, Tajikistan, Kuwait, Mauritius, Kenya, and Ghana. Speaking to Bizz Buzz exclusively, Dr Sanchit Sharma, who has 40 years of experience of running the parent company- AIMIL Pharmaceuticals, outlines his plans to establish a strong global footprint and clock Rs 100 crore turnover mark over the next couple of years

What is the total size of the Ayurvedic skincare and beauty products in India?

According to the global Ayurvedic market report 2020-2026, the global Ayurvedic skincare market is expected to grow at a staggering rate of 16.14 per cent (CAGR). The global recognition and rising demand for Ayurvedic beauty brands is also contributing to the exponential growth of the Indian Ayurvedic skincare market. The Ayurvedic skincare market in India was valued at approximately $998 million in 2020.

What is the percentage wise break-up of branded and unbranded products in this category?

According to the market report of IMARC by analyzing the market data of 2017-2022, currently in ayurvedic skincare segment branded and unbranded ratio is 60:40.

At what rate is this market growing?

The Ayurveda skin market is projected to witness a CAGR of around 16 per cent during the forecast period 2021-2026.

Besides India, which are the other key markets for such products?

The global market for Ayurveda products, valued at $6.50 billion in 2021 is projected to reach $21.12 billion by 2028, growing at a CAGR of 15.63 per cent from 2021 to 2028. Traditional Indian ingredients and rituals are sweeping skin care, fragrance and wellness markets around the world, resonating with consumers who are embracing an increasingly holistic approach to beauty. North America, Europe, Asia Pacific, Latin America, Western & Eastern Europe, Middle East & Africa (United States, Canada and Mexico, Germany, France, the UK, Russia and Italy, China, Japan, Korea, Southeast Asia, Brazil, Argentina, Colombia, Saudi Arabia, UAE, Egypt, Nigeria and South Africa to name a few)

How many products do you have currently and how many more would you like to add over the next two-three years?

Ayouthveda formulates world-class beauty and wellness products with a commitment to always prioritize the safety of its users. Ayouthveda offers an immaculate line of products that have no harsh chemicals like parabens, silicones, sulfates, and petroleum, standing firm on the commitment to deliver the best-in-class skincare for its users. Our core strength lies in our excellent R&D facility and we at Ayouthveda believe in product innovations on time to time basis. Ayouthveda brings in ancient Ayurvedic techniques and modern technology, paired with the latest pharmaceutical innovations to create therapeutically active products which provide the customers an experience of holistic care that goes skin-deep. The brand with its ‘effective skincare’ and diverse range of authentic ayurvedic products caters to each and every type of skin. We are currently catering with 5 different categories namely skincare, bath and beauty care, intimate and hygiene care, hair care and classics with more than 100 world class products currently under our kitty and we plan to add 150+ more products in coming 2-3 years.

Where do you position your products/brand- mass market, mid-segment, premium?

We position ourselves as a mid-premium brand.

What is your current market share and where would you like to take it up to?

Ayouthveda is in the nascent stage of its operations and we are thriving to make the brand as the de-facto leader of the Indian Ayurvedic personal care sphere and emerging as one of the top 10 companies in the country in next 3 years to come.

Do you have your own company-owned outlets or do you sell your products through MBUs? How many such outlets do you have? How many more would you like to add?

Currently we have three exclusive brand outlets (EBO) – two in Delhi and 1 in Rajasthan. We would be opening 100 more EBO’s in coming 3 years. Our products currently are available in 30,000 retailers in 250 cities of India and the company’s over 400 beauty advisors markets the brand’s authentic Ayurvedic products via cosmetic stores. We are also listed in leading modern trade outlets like 1mg, Max Bazaar, Combonation, BKD, Raj Mandir etc, and also all leading online portals where you can find Ayouthveda products very easily. .

What is your current exports volume and which are the countries you export to? Are you looking at any new geographies?

Ayouthveda is already listed and registered with more than 30 products in 27 countries of Europe and is available at both offline and online international channels in Hungary, UK, Uzbekistan, Moldova, Kazakhstan, Kyrgyzstan, Tajikistan, Kuwait, Mauritius, Kenya, Ghana. We are working towards penetrating our global division in many other countries as well.

What is the contribution of exports in your overall revenues? Do you see this growing significantly, going forward?

Ayouthveda’s international division has started the operations just a few months back. We are getting very good response.

How are you leveraging your past experience in pharma space?

We created the brand with an intent to deliver quality products par excellence, derived from the experience and expertise of our parent company, AIMIL Pharmaceuticals. Widely recognized for delivering superior quality Ayurvedic/herbal healthcare products since 1984, AIMIL Pharmaceuticals has been honoured with three national awards by the Indian government for manufacturing quality products, R&D efforts, and outstanding entrepreneurship. The company carries its 40-year old legacy of exporting scientifically-backed Ayurveda medicines for chronic diseases to over 18 countries

What is the most significant trend, you are noticing in the sector?

This sector is already seeing noticeable improvements, such as use of clean and natural ingredients, sustainability and eco-friendly packaging, digital and e-commerce growth, inclusive and diversity-driven marketing, technology integration, men's grooming and beauty, CBD and hemp-based products, anti-pollution skincare products.