Herbal/Traditional Products in India

PROSPECTS

Natural trend exerting a wide-ranging influence

A growing focus on natural ingredients and concerns about the potentially harmful impact of consuming artificial chemical compounds are an increasingly prominent feature of the health and wellness trend in many markets. In India, this is being supported by a strong tradition of Ayurvedic medicine, which provides a foundational familiarity with the concepts and ingredients involved in herbal and traditional products, as well as a partially established product offer.

Distribution playing important role in category development

Per capita expenditure on herbal/traditional products remains low, indicating significant potential for further category development. Distribution will play a key part in the emergence of the category, as distribution channels have a major role in building and sustaining consumer confidence, brand-building and extending the reach of products to lower-tier cities.

New entrants and changes in market positioning expected

Brands that were already positioned as herbal and natural products started to aggressively market their products through various campaigns, highlighting their natural and herbal ingredients, during the review period. Over the forecast period, well-established companies that are not yet present in herbal/traditional products are expected to look to revamp their portfolios or expand their product lines to tap into the increasing demand for herbal and natural remedies.

COMPETITIVE LANDSCAPE

Emami expands coverage to reinforce leading position

Emami’s strong product mix across various categories, including analgesics, cough cold and allergy (hay fever) remedies and dermatologicals, enabled it to retain top spot in herbal/traditional products in the final year of the review period. Emami’s product offer is comprised of a differentiated range of products based on age-old Ayurvedic practices.

Herbal/traditional products dominated by domestic companies

Herbal/traditional products continued to be dominated by domestic players, such as Dabur India, Emami, Amrutanjan Health Care and The Himalaya Drug Co, amongst others, in 2019, due to their strong legacy and ability to effectively cater to Indian consumers. Leading domestic companies focused on innovative product launches and branding campaigns, which were largely targeted at the rural population to increase consumer awareness and stimulate demand.

Pure Nutrition amongst the new local players looking to make a mark

As well as the established domestic companies that hold a strong position in herbal/traditional products, the category is seeing the entry of new local players. Pure Nutrition, established in Mumbai in 2016, is amongst the local companies looking to tap into Indian consumers’ growing awareness of the role of diet and nutrition in healthy lifestyles and disease prevention.

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