How Big Is the Ayurveda Industry in 2025? Insights on India’s Market Power

In a world reshaped by the quest for immunity, longevity, and conscious living, Ayurveda has risen from ancient scrolls to global headlines, transforming not just health but entire industries.

Once confined to spiritual retreats, this timeless Indian science now powers billion-dollar segments-from herbal supplements and skincare to stress relief and telemedicine.

The shift is massive and measurable. As of 2025, India’s Ayurveda industry has surged to ₹1.9 lakh crore (~$22 billion), growing at a striking CAGR of nearly 15% since 2020, according to Future Market Insights.

This boom spans across food supplements, personal care, and Ayurvedic pharma.

Young India, i.e., the Gen Z and Millennials, is championing Ayurveda as a lifestyle, not a last resort. Tired of synthetic solutions, the world is turning to Bharat’s holistic legacy-embracing herbs, rituals, and remedies backed by both tradition and science.

Global giants are launching Ayurvedic lines. Indian brands are rewriting records. But this isn’t just commerce; it’s cultural resurgence. At its core lies a philosophy, a rhythm, a return to roots.

Welcome to the Ayurveda Industry in 2025-where ancient wisdom isn’t just relevant… it’s revolutionary.

Let’s dive in!

Suggested Reads: Millennials and Gen Z Investors: Best Stocks to Invest in for 2025 & Best Mutual Funds for Gen Z and Millennials to Invest in 2025

How Big is the Indian Ayurveda Industry in 2025?

The Ayurveda industry in India has reached a market size of ₹1.9 lakh crore (~$22 billion) in 2025, according to Future Market Insights.

This reflects a CAGR of nearly 15% between 2020 and 2025, driven by a surge in demand across multiple segments, like food supplements, personal care, and ayurvedic pharmaceuticals.

The sector has expanded beyond traditional boundaries, with Ayurvedic health drinks alone contributing ₹13,000+ crore to the pie.

Digital-first brands, rapid urbanization, and rising disposable incomes have enabled Ayurveda to reach Tier-2 and Tier-3 towns-places where allopathy once dominated.

Exports have surged to ₹18,667 crore, as per Statista, with high demand from the US, UAE, Germany, and Japan. Herbal teas, supplements, skincare oils, and respiratory immunity boosters dominate the outbound product mix.

India is also experiencing an explosion in Ayurveda-driven D2C brands, such as Kapiva, Auric, The Ayurveda Co. (TAC), and Vedix. These brands are leveraging AI, gamified dosha quizzes, and e-commerce platforms to make Ayurveda modern and relatable.

Foreign investors are taking note. Japan’s Mitsui invested in Ayurveda teleconsult platform NirogStreet, while wellness conglomerates in the US have partnered with Indian formulators for Ayurvedic cosmetics.

As the Ministry of AYUSH doubles down on regulations and exports, India is not just a market leader-it is the cultural custodian of the world’s most enduring health system.

World Ayurveda Day

Fittingly, India now celebrates Ayurveda Day on September 23rd each year, a date chosen by the government to coincide with the autumnal equinox, symbolizing balance, the very essence of Ayurveda.

Organized by the Ministry of AYUSH, the day aims to boost global visibility of India’s timeless health system. Earlier observed on Dhanteras, the shift to a fixed date marks Ayurveda’s growing relevance in the modern world.

This year’s theme? “Ayurveda Innovation for Global Health“.

As India tightens regulations, strengthens exports, and embraces tech-led wellness, it’s not just a market leader-it’s the cultural guardian of one of the world’s oldest and most respected health systems.

Top Ayurveda Stocks to Invest in 2025

Ayurveda is not just a way of life, it’s a market force.

Below are some of the key ayurvedic stocks that you can check out:

Stock Name	Sector	Current Price	P/E Ratio	ROE	Dividend Yield	Market Cap (₹ Cr)	Notable Products
Dabur India Ltd	FMCG/Ayurveda	₹ 533	53.9	16.8 %	1.49 %	₹ 94,555 Cr	Oral care, hair oils, shampoos, home care, skin care, health supplements, digestives, OTC products, ethical products, beverages, and packaged foods (including Badshah).
Patanjali Foods	FMCG/Food Oils	₹ 1,868	52.0	12.1 %	0.44 %	₹ 67,711 Cr.	The company offers palm, soya, and sunflower oils; crude palm products; oleochemicals from castor, soya, and palm; staples like atta, ghee, tea, and honey; biscuits and cereals; nutraceuticals and Ayurvedic medicines for all age groups; and Nutrela’s range of plant proteins, millets, oats, and superfoods.
Emami Ltd	FMCG	₹ 612	32.7	31.2 %	1.31 %	₹ 26,725 Cr.	The company’s 550+ products span antiseptics, Ayurvedic medicines, pain balms, cooling oils, hair care, men’s grooming, and salon-grade personal care under brands like BoroPlus, Zandu, Navratna, Kesh King, and The Man Company.
Kerala Ayurveda Ltd	FMCG/Pharma/Ayurveda	₹ 505	–	-67.0 %	0.00 %	₹ 608 Cr.	Child/kids Health, Diabetes / Heart Health,Eye Care, Gastro care, Joint care, Lifestyle Products, Massage Oils, Men’s care, Renal Care, Women’s Care, Respiratory and Allergy, Skin & Hair Care, General Health/Immunity, Ayurveda Soaps, Diabetes, Organic Super food.
Himalaya Food International Ltd	Pharma/FMCG	₹ 14.7	40.4	2.26 %	0.00 %	₹ 128 Cr.	HFC offers frozen and canned mushroom products, cheese, sweets, and appetizers, which are claimed to be 100% natural, vegetarian, and chemical-free.

*Note: Himalaya Wellness is unlisted but remains a dominant player globally.

Investors are increasingly recognizing these companies not just as FMCG giants but as custodians of ancient healthcare systems. The Ayurvedic angle is driving new product launches and ESG-conscious investments.

Suggested Read: Top FMCG Stocks to Invest in 2025 for Explosive Returns

Ayurvedic Brands: Empowering Farmers, Fueling Swadeshi Economy

Ayurvedic companies such as Patanjali Ayurved, Dabur, Emami, and Forest Essentials have become powerful engines of India’s Make in India and Aatmanirbhar Bharat initiatives-without sounding like marketing copy. They are creating real economic impact at multiple levels.

Farmers and Local Livelihoods

• Patanjali Ayurved sources herbs directly from Indian farmers. Its Herbal & Food Park in Andhra Pradesh spans over 172.8 acres, employs 33,000+ people, and processes nearly 3 lakh metric tonnes of produce annually, offering stable income to small growers.
  
  
• Emami sources 60% of its raw materials locally, supporting local communities and regional economies. Its Bioresources Development Department ensures sustainable procurement of Medicinal and Aromatic Plants (MAPs) from local growers.
  
  

Economic Contribution & Export Growth

• Dabur, founded in 1884, continues to grow as a global natural health care company. Its Ayurvedic portfolio forms a significant portion of its ₹15,000+ crore turnover in FY25, contributing to India’s export momentum in herbal products
  
  
• These companies collectively represent over 70% of the AYUSH FMCG market, with combined revenues exceeding ₹74,000 crore, of which ₹15,000 crore derives specifically from traditional Ayurvedic segments.
  
  

Beyond Business: Education & Cultural Enterprises

• Patanjali University, established in Haridwar in 2006, educates future Ayurveda practitioners, wellness coaches, and Sanskrit scholars-combining Indian education with national wellness promotion.
  
  
• Patanjali also runs Patanjali Paridhaan, a regional apparel outlet showcasing Indian textiles and supporting local artisans (galas and weavers).
  
  

Brand India and Swadeshi Values

Forest Essentials, Kama Ayurveda, and Dabur tap into heritage for global appeal-selling high-end skincare, nutraceuticals, and wellness teas that promote India’s Ayurvedic tradition worldwide. These brands reinforce India’s cultural leadership in wellness, fueling exports and enhancing India’s image globally.

Why It Matters

• These Ayurvedic companies create direct and indirect jobs across agriculture, manufacturing, retail, and education.
  
  
• By sourcing India-first and promoting indigenous production, they reduce import reliance and strengthen domestic supply chains.
  
  
• Their success boosts Brand India’s wellness credentials, helping Indian exports in Ayurvedic products become globally trusted.
  
  
• Their initiatives align seamlessly with national priorities-uniting health, heritage, and inclusion.
  
  

This multifaceted impact shows that ahurveda is no longer just medicine-it’s a socio-economic force, fostering rural empowerment and sustainable growth while championing India’s self-reliance.

From Vedas to Valuations: A Brief History of Ayurveda

Ayurveda, which means “the science of life“, comes from the Atharva Veda, one of India’s oldest spiritual texts. Its main books: Charaka Samhita, Sushruta Samhita, and Ashtanga Hridayam, were written thousands of years ago, long before modern medicine began.

Charaka, known as the “Father of Ayurveda“, believed that staying healthy is just as important as treating illness. He wrote about daily routines, digestion, and using herbs for healing. His book talks about treating each person based on their body type and lifestyle, an idea still used in Ayurveda today.

Sushruta, called the “Father of Surgery“, described more than 300 surgical methods and 120 tools in his writings. He explained how to do plastic surgery and remove cataracts hundreds of years before these were done in the West. He also believed in practicing on cadavers to learn surgery safely and promoted cleanliness and ethics in medicine.

Ayurveda influenced medical systems across the world. Traditional Chinese Medicine and the Greek Unani system borrowed ideas like pulse reading, herbal remedies, and the five-element theory from Ayurveda.

During British rule, Ayurveda lost attention as Western medicine took over. But today, it’s making a big comeback. The World Health Organization (WHO) has opened a global center for traditional medicine in Gujarat, India. The government has also created an AI-based Traditional Knowledge Digital Library to protect and promote Ayurvedic knowledge.

Now, as Ayurvedic companies grow in value, the world is realizing the strength of this ancient Indian system. Ayurveda is not just an alternative-it is one of the world’s oldest and most complete ways to stay healthy.

Ayurveda’s Surgical Mastery & Healing Arts: Then and Now

Sushruta Samhita, dating to around the 6th century BCE, was one of the world’s earliest surgical compilations. It describes nasal reconstruction, cataract removal, bone setting, and childbirth surgeries, with strict training involving practice on gourds and animal organs. The “Indian method” of nose reconstruction influenced Islamic and later European surgical traditions.

Marma chikitsā, core to Kerala’s ancient martial art Kalaripayattu, taught warriors how to heal injuries using pressure points, herbal oils, and massage-skills still preserved by traditional Ayurvedic healers today.

Legendary figures like Viśpálā, a warrior queen in the Rig Veda (1500-1200 BCE), are credited with early use of prosthetic iron limbs. Although mythological, such stories underscore that ancient India explored sophisticated medical restoration long before modern instruments.

Despite these powerful legacies, Ayurvedic surgery is banned in India today; surgical procedures are restricted to allopathic practitioners as per current law. Scholars are advocating for a revival, proposing regulated, evidence-backed institutions that train modern Ayurvedic surgeons based on classical texts.

This is not merely nostalgia. It’s a call to responsibly restore India’s ancient medical science, combining Sushruta’s surgical art with 21st-century safety, research, and ethics.

Science Hijack & Patent Wars: How the West Tried to Hijack Ayurveda & Claim Our Wisdom

India has faced many attempts to take credit for its ancient knowledge, not through wars, but through patent filings in other countries.

These cases show how close the world came to owning what was already ours-but also how India stood up and took it back:

The Neem Patent Case (1995-2005): A Historic Win

In 1994, the U.S. Department of Agriculture and a company named W. R. Grace received a European patent for using neem oil as a medicine for fungal infections. But neem had been used in India for more than 2,000 years to protect crops and treat diseases.

India fought back. In 2000, the European Patent Office (EPO) canceled the patent after finding proof that neem’s use wasn’t new. Appeals followed, but the patent remained revoked in 2005. This became the first major global victory against biopiracy (stealing biological resources and traditional knowledge).

Activists like Dr. Vandana Shiva, the EU Green Party, and RFSTE led the movement. Dr. Shiva famously said: “It was pure piracy…neither novel nor invented“.

The Turmeric (Haldi) Case (1997-1998): CSIR’s Bold Move

In 1995, the University of Mississippi Medical Center got a U.S. patent for turmeric’s wound-healing properties. But turmeric had been used in Indian homes for centuries to treat cuts and injuries.

India’s Council of Scientific and Industrial Research (CSIR) filed a complaint in 1996. They submitted 32 references in Sanskrit, Hindi, Urdu, and scientific journals. In March 1997, the U.S. Patent Office canceled the patent, saying the idea was not new.

Tulsi & Basmati: When India’s Identity Was at Risk

Tulsi (Holy Basil) Patent Attempt in 2003

In 2003, an American company named ImmunoMax applied for a European patent (EP1333543A1) for a product made using Tulsi (Ocimum sanctum), claiming it helped reduce stress and boost antioxidants. But Tulsi isn’t new to India-it has been used in Indian homes for over 3,000 years in both medicine and spiritual practices.

India challenged this using its Traditional Knowledge Digital Library (TKDL) and submitted old Ayurvedic texts to prove Tulsi’s long-standing use. Because of this, the patent was either abandoned or never fully approved (as per TKDL and CSIR records).

Basmati Rice Ricetec Controversy (1997-2001)

In 1997, a company from Texas called RiceTec Inc. received a U.S. patent (US 5663484) for what they called “Basmati rice lines and grains“. They claimed they had created a new type of aromatic rice by mixing Indian Basmati with American rice.

India opposed this strongly, saying Basmati isn’t just a crop, it’s part of India’s culture and grown in specific regions like Punjab, Haryana, and Uttarakhand. With strong pressure from the Indian government and global support, the U.S. Patent Office cancelled 15 out of the 20 claims in 2001. Later, in 2016, India secured Geographical Indication (GI) status for Basmati in the EU, officially protecting its name and origin.

Why This Matters Globally

These cases showed that even India’s most well-known herbs and crops could be claimed by others if not protected. Thanks to India’s legal efforts and the creation of TKDL, patent offices around the world now look more closely before granting rights over traditional Indian products.

TKDL: India’s Digital Shield

To protect ancient knowledge, India launched the Traditional Knowledge Digital Library (TKDL) in 2001. It is a massive digital database that records over 3 lakh Ayurvedic, Unani, and Siddha formulations. These are translated into English, French, German, Japanese, and Spanish-so that global patent offices can understand and use them.

Thanks to TKDL, more than 200 foreign patent claims have been canceled or blocked in countries like the U.S., EU, Japan, Canada, and Australia.

Why These Stories Matter

1. These aren’t just patent fights, they’re fights for India’s identity, respect, and ancient legacy.
   
   
2. Ayurveda isn’t just an old tradition, but a well-documented science, going back to Atharva Veda, Charaka Samhita, and Sushruta Samhita.
   
   
3. Our ancestors discovered and practiced healing methods long before modern science gave them names.
   
   
4. When India uses the right legal tools and evidence, we can protect our culture-even in global courts.
   
   
5. By doing this, India is proving that we can be modern while proudly keeping our timeless wisdom alive-not just in spirit, but also in law.
   
   

Government Push & Policy Support for Ayurveda in 2025

In 2025, the Indian government has taken big steps to boost the Ayurveda industry. In the Union Budget 2025-26, the Ministry of AYUSH was given ₹3,992.90 crore, a 14% increase from last year. This money will support Ayurvedic research, education, medicine quality, and the growth of traditional healing systems across India.

One major highlight is the WHO Global Centre for Traditional Medicine in Jamnagar, Gujarat. This is the world’s first WHO-backed centre for Ayurveda and traditional medicine.

India is investing $250 million (about ₹2,000 crore) in building and operating this centre. It will focus on scientific research, global training, and setting global standards for Ayurvedic practices. The foundation stone was laid in 2022, and by 2025 it has become a symbol of India’s leadership in global wellness.

Another big step is Ayurveda insurance coverage in India. Under Ayushman Bharat (PM-JAY) and the new Ayushman Arogya Mandir scheme, over 11.5 crore people have received Ayurvedic treatments covered by government health insurance. Many state-level schemes also allow cashless AYUSH treatments.

The government is also building the future of Ayurveda through Ayurvedic colleges, R&D parks, and wellness centres. For example, the Institute of Teaching and Research in Ayurveda (ITRA) in Jamnagar is now an Institute of National Importance, supporting cutting-edge Ayurvedic education.

States like Uttarakhand have launched special wellness policies, offering grants of up to ₹20 lakh for setting up Ayurveda and yoga centres in hilly regions.

Thanks to these strong government initiatives, India’s Ayurveda market is growing faster than ever-with full support for education, exports, insurance, and global recognition.

India’s Global Rise in Ayurveda in 2025

India is now one of the biggest exporters of Ayurvedic and herbal products like powders, syrups, and plant extracts. In 2024-25, exports of AYUSH and herbal items crossed ₹18,000 crore, showing that more countries are turning to traditional Indian medicine (Source: Statista).

According to ScienceDirect (2025), India exported 1.15 lakh metric tonnes of these products-a 21.5% jump from last year. Earnings also grew by 5.9%, reaching $689 million (₹5,831 crore). Popular items include Ashwagandha tablets, Tulsi syrups, Triphala powders, and herbal teas.

Countries like the U.S., Germany, UAE, and Japan are the top buyers of Indian Ayurvedic goods. Many international wellness brands now depend on India for natural products that help with immunity, digestion, and stress relief (Source: Export Experts Global).

To meet global quality standards, India launched the “One Herb, One Standard” policy in 2022. Under this, the Pharmacopoeia Commission for Indian Medicine & Homoeopathy (PCIM&H) partnered with the Indian Pharmacopoeia Commission (IPC) to set clear standards for Ayurvedic, Siddha, and Unani herbs (Source: PIB).

This makes quality checks easier and builds trust in Indian exports. It’s not just about selling herbs anymore-India is helping set global rules.

Ayurveda is no longer seen as old-school or local. With India leading the way, it’s now recognized worldwide as a powerful health and wellness solution.

Suggested Read: Top Pharma Stocks in India: 7 Powerful Picks to Watch in 2025

Challenges & Roadblocks in the Growth of Ayurveda

Despite its booming popularity, Ayurveda still faces several critical challenges that must be addressed to secure its place in modern global healthcare systems.

1. Lack of Strong Clinical Evidence

Many Ayurvedic formulations lack large-scale, randomized clinical trials that meet modern scientific standards. A review published in Current Science and ResearchGate noted that most trials are limited in sample size, standardization, and peer-reviewed validation.

India has initiated steps through the Clinical Trials Registry of India, but global recognition is still limited unless the research is designed under WHO or FDA guidelines.

2. Slow Regulatory Acceptance Globally

In the United States, the FDA classifies Ayurvedic products as dietary supplements, not medicines. This means they aren’t required to prove their safety or effectiveness. In the European Union, the European Medicines Agency (EMA) demands strict documentation under the Traditional Herbal Medicinal Products Directive, making entry difficult and expensive.

3. Rise in Counterfeit & Poor-Quality Products

A study published in JAMA (2008) found that over 20% of Ayurvedic medicines sold online contained harmful levels of heavy metals like lead, mercury, or arsenic.

This harms India’s reputation and creates consumer distrust.

What’s Needed?

• Stringent GMP enforcement
  
  
• Unified quality standards
  
  
• Stronger R&D partnerships
  
  
• Transparent supply chains
  
  
• Only then can Brand India Ayurveda maintain global credibility and trust.
  
  
  

Suggested Read: Using ChatGPT for Trading in 2025: Smart Move or Risky Bet?

The Future of Ayurveda: India’s Global Wellness Opportunity

India is now using technology to give Ayurveda a powerful future. From AI-driven prakriti assessments to genomics-based treatments, we’re witnessing a massive upgrade in how Ayurveda is delivered.

1. AI + Ayurveda = Personalized Wellness

Startups and researchers are combining Ayurveda and genomics, leading to the rise of “Ayurgenomics.” This science uses a person’s DNA and prakriti (body constitution) to deliver personalized health plans.

For example, AI tools are now being used to:

• Identify your dosha (Vata, Pitta, Kapha) in minutes
  
  
• Suggest personalized diets and herbal combinations
  
  
• Track progress via smart apps
  
  

India’s AYUSH Grid and support from WHO-backed institutions like Global Centre for Traditional Medicine (Jamnagar) are helping scale this science.

2. India as the Herbal Pharma Supply Hub

India is becoming a global manufacturing base for herbal medicines and nutraceuticals. Thanks to the “One Herb, One Standard” policy, we now have:

• Unified quality benchmarks across Ayurveda, Siddha & Unani
  
  
• WHO-GMP-certified labs
  
  
• Traceable supply chains using AI and blockchain
  
  

Major pharma players are investing in standardized herbal extracts, clinical R&D, and tech-led manufacturing. This helps Indian Ayurveda products meet strict global export standards.

3. A Vision Beyond Borders

Imagine:

• DNA-powered dosha reports
  
  
• Herbal drug discovery using AI-trained Ayurvedic datasets
  
  
• Tele-Ayurveda consultations across continents
  
  

India’s Ayurveda industry is evolving from ancient healing traditions to tech-powered global wellness leadership.

Conclusion: A New Chapter for an Ancient Science

Ayurveda in 2025? It’s not just vibing-it’s thriving.

What once sat in dusty scriptures is now rewriting the rulebook of global wellness. From ₹13,000 crore herbal health drinks to DNA-based dosha diagnostics, Ayurveda has officially gone from “old-school” to “cutting-edge.” Gen Z is sipping Ashwagandha lattes, global labs are reverse engineering Triphala, and investors are chasing the next Patanjali.

But this isn’t just a glow-up. It’s a cultural power move.

India isn’t playing catch-up-it’s setting the pace. While the West scrambles to validate herbs we’ve used for centuries, we’re building AI-backed R&D labs, exporting to 100+ countries, and teaching the world what holistic actually means. Ayurveda is no longer a backup plan-it’s the blueprint.

This industry isn’t just growing, it’s roaring with self-belief. It’s healing bodies, fueling economies, empowering farmers, and reclaiming what was always ours.

So here’s the truth: Ayurveda isn’t having a comeback.

It never left.

It just evolved-into a ₹1.9 lakh crore revolution with roots deeper than time and wings made for the world.

This isn’t the end of the story.

It’s the global beginning of ours.

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