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Health and Beauty We examine the trends underlying the growth of the global marketplace in health, beauty and hygiene. Our analysts will point the way forward by highlighting critical innovations and behaviours that are driving industry evolution.

Ayurvedic Alchemy: Uncovering India's Ingredient-Led Ayurvedic Beauty Industry

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Pallavi Arora Bio

Ayurveda is evolving with increasing emphasis on ingredient-led product positioning in the beauty industry. Premium Ayurvedic products are more readily accepted in the country with growing focus on natural, tailor-made product offerings. Ayurvedic brands are growing their opportunities through fusion products that combine the best of Ayurvedic and derma ingredients—a concept which is expected to hold great significance for the coming years.

Indian consumers possess strong cultural affinity and trust in Ayurveda

Ayurveda's holistic approach to health and beauty, which focuses on using natural ingredients and traditional formulations resonates strongly with Indian consumers.

31% of Indian respondents sought out skin care containing natural or organic features—which was notably higher than 23% of global respondents

Source: Euromonitor International Voice of the Consumer: Beauty Survey, fielded June-July 2022 

The belief of Ayurvedic products as safe, non-harmful, and free from side effects plays a significant role in the readiness of Indian consumers to try out Ayurvedic beauty products. According to Euromonitor International’s Economies and Consumers data, median disposable income per household in India is expected to record a CAGR of 9.3% by 2027. With growing disposable incomes, consumers are likely to be more inclined towards spending on premium beauty products, particularly on those with natural ingredient-based formulations.

Ingredients take centre stage in leading Ayurveda beauty

The industry’s shift towards ingredient-led product positioning has also prompted beauty brands of all positioning to prioritise transparency. Ayurveda beauty brands in India are increasingly providing detailed information about the key ingredients used in their products, highlighting their benefits and traditional uses. Indian consumers are already familiar with using Ayurvedic ingredients such as turmeric, saffron, neem, and sandalwood among others, for various purposes. When combined with attractive packaging and a recognisable brand name, these products successfully blend the trust consumers have in traditional ingredients with modern and appealing packaging.Ayurvedic Academy chart1.svg

Brands are introducing comprehensive product ranges centred around a single key ingredient. Kama Ayurveda—a leading Indian Ayurvedic beauty brand, backed by Spain-based Puig—introduced the entire skin care range, strategically centred around its star Ayurvedic ingredient; Kumkumadi oil.

Additionally, Ayurvedic brands are now emphasising a more targeted approach by introducing specialised products that cater for specific skin/hair concerns. Nykaa, a prominent online beauty retailer in India, recently entered the space with its own private label Ayurvedic-based wellness line, Nyveda, which offers hair oils for specific hair concerns.Ayurvedic Academy chart2.svg

Premium Ayurveda brands increase penetration through focus on quality

Consumers are willing to invest in beauty products that align with their preference for natural and holistic solutions.

37% of consumers in India associate natural ingredient-based formulation with premium beauty products

Source: Euromonitor International Voice of the Consumer: Beauty Survey, fielded June-July 2022 

Indian brands such as Kama Ayurveda and Forest Essentials have a premium positioning due to their focus on using high-quality natural ingredients and traditional manufacturing methods. Ayurvedic brands prioritise holistic wellbeing by offering personalised beauty and wellness solutions that consider individual uniqueness, using online consultations and diagnostic tools to determine body constitution (dosha) and provide personalised solutions.Ayurvedic Academy chart3.svg

The evolving dynamics of the Indian economy is significantly contributing to the growth of the premium Ayurveda segment in the country. Rapid urbanisation has played a crucial role in this transformation. Urban centres are witnessing a rise in lifestyle aspirations, with consumers seeking products that align with their evolving preferences. The urban population, exposed to global trends and international brands, is increasingly embracing the concept of premium Ayurveda as a luxurious and holistic approach to beauty and wellness.

As consumers prioritise natural and organic ingredients in their skin care and beauty products, there is growing demand for high-quality Ayurvedic offerings, which are also ethically sourced and scientifically formulated. Brands are focusing on developing products that are not only effective but also luxurious and indulgent, elevating the overall consumer experience. The use of premium packaging and elegant branding further contributes to the perception of Ayurvedic products as high-end and aspirational.

Outlook: Expanding Ayurvedic beauty horizon beyond traditional categories

Ayurvedic claims are currently prevalent in skin care, hair care, and bath and shower categories, but brands are exploring opportunities to expand into other areas. Men’s grooming and fragrances both offer immense untapped potential, with only a select number of Ayurvedic beauty companies having ventured into these categories so far. As the trend of men embracing beauty and personal grooming continues to rise, it becomes increasingly stimulating to explore how Ayurvedic ingredients can be seamlessly integrated into men's grooming products and other related categories.

Additionally, the concept of fusion products, which combines the best of Ayurvedic and derma ingredients, holds great significance for the coming years. Beauty brand indē wild has established its distinct positioning by launching products that blend the advantages of both Ayurvedic and chemical ingredients. Another notable example is Dr. Sheth's, a beauty brand that has embraced the concept of fusion ingredients by introducing products featuring Haldi (turmeric) and hyaluronic acid. These fusion formulations exemplify the potential of blending traditional Ayurvedic wisdom with modern chemical skin care advancements, catering for a wider consumer base.

Ayurveda's philosophy resonates with the trend of holistic health, and it is accelerating the expansion globally. According to Euromonitor International’s Via database, the UK and US have witnessed a remarkable 28% increase in skin and hair care products featuring Ayurvedic claims between 2020 and 2023. Moving forward, Ayurveda brands are expected to emphasise ingredients and explore premiumisation of beauty products with Ayurvedic claims for diverse beauty categories beyond skin care.

Read our report Beauty and Personal care in India for further insights into Ayurveda and its emergence.

Our article The Rise of Ingredient-Led Beauty offers further analysis on how consumer demand for ingredient education is shaping beauty and personal care.

Read our article Ingredient-Led Beauty: Beauty and Personal Care Innovation in Botanicals and Functional Fragrances for analysis on how players, including Ayurveda companies, are leveraging ingredient trends in fragrances.



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