|
Forecast Period
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2026-2030
|
|
Market Size (2024)
|
USD
416.28 Million
|
|
CAGR (2025-2030)
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9.21%
|
|
Fastest Growing Segment
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Ayurvedic
Medicine
|
|
Largest Market
|
South India
|
|
Market Size (2030)
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USD 707.85 Million
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Market Overview
The India Traditional Medicine Market was valued at USD 416.28 Million in 2024 and is expected to reach USD 707.85 Million by 2030 with a CAGR of 9.21% during the forecast period.
India's traditional medicine market is witnessing robust growth, driven by rising consumer preference for natural remedies, strong government support, and increasing global recognition of Ayurveda, Siddha, and other indigenous medical systems.
The Ministry of AYUSH has played a pivotal role in promoting traditional healthcare through policies, funding, and integration with modern medical practices. The surge in wellness tourism, especially in southern India, has positioned the country as a global hub for Ayurveda and naturopathy. The market also benefits from expanding research efforts, with increasing scientific validation and clinical trials enhancing the credibility of herbal and alternative medicines.
However, despite these positive trends, challenges persist. Quality control and standardization remain key concerns, as counterfeit and substandard products can affect consumer trust. Limited scientific documentation and the lack of large-scale clinical trials create barriers to wider acceptance in mainstream healthcare.
Supply chain constraints, particularly in sourcing high-quality raw materials, as well as regulatory complexities, further pose hurdles to market expansion. Nonetheless, with increasing investments, digital integration, and export opportunities, India's traditional medicine market is poised for continued growth, albeit with the need for stronger regulatory frameworks and scientific backing to ensure long-term sustainability.
Key Market Drivers
Expanding Ayurveda-Based Wellness & Tourism Industry
India's Ayurveda-based wellness and tourism industry is experiencing significant growth, driven by increasing global demand for holistic healthcare solutions, robust government support, and the country's long-standing traditional medicine practices. The Ministry of Tourism (2023) highlights that 22.7% of visitors from West Asia travel to India for medical purposes, showcasing India's reputation as a premier destination for medical and wellness tourism.
A key driver of this growth is the increasing preference for Ayurveda-based treatments, particularly among international patients seeking non-invasive, natural healing therapies. Approximately 2 million patients visit India each year from 78 countries for medical reasons, with a growing proportion opting for Ayurveda and naturopathy treatments. Kerala, often referred to as the global capital of Ayurveda, attracts a significant share of these visitors due to its specialized Ayurvedic resorts, wellness centers, and integrated medical tourism programs.
Domestically, Ayurveda holds an entrenched position in India's healthcare ecosystem. Nearly 80% of the population practices some form of Ayurveda, supported by a vast network of approximately 250,000 registered Ayurvedic practitioners. This extensive presence, coupled with the rising demand for Ayurvedic products, has strengthened India's position as a global hub for traditional medicine. The growing consumer preference for preventive healthcare, organic remedies, and personalized wellness plans has further accelerated market expansion.
Awareness about AYUSH (Ayurveda, Yoga, Unani, Siddha, and Homeopathy) is widespread across India, with awareness levels ranging from 87% to 99% in rural areas and over 86% in urban India, across all states and union territories, except Arunachal Pradesh. This intense awareness, coupled with initiatives promoting Ayurveda-based tourism, has contributed to a rise in investments in Ayurvedic hospitals, wellness retreats, and digital platforms offering Ayurvedic consultations worldwide.
While the Ayurveda-based tourism industry is growing, challenges such as standardizing quality, addressing infrastructure gaps, and navigating regulatory complexities persist. However, with continued government incentives, strategic international partnerships, and rising consumer trust, India's Ayurveda wellness sector is well-positioned to strengthen its foothold in the global medical tourism landscape, offering a unique blend of traditional healing and modern wellness experiences.
Rising Consumer Demand for Natural Remedies
The increasing global shift toward natural and holistic healthcare is a key driver of India's traditional medicine market, particularly Ayurveda. In 2024-25, 92% of Indian households purchased Ayurvedic products, up from 89% five years ago, underscoring widespread adoption and health-conscious behavior. Nearly 80% of the population incorporates Ayurveda into their daily routine, reflecting deep cultural trust and making India one of the world's largest markets for traditional medicine. Gen Z and Millennials are at the forefront of this movement, embracing Ayurvedic supplements for managing lifestyle disorders like stress, obesity, diabetes, and cardiovascular issues.
Ayurvedic products such as Chyawanprash, Ashwagandha, and Turmeric-based supplements have seen significant growth post-pandemic, with immunity-boosting formulations contributing to a wave of innovation in plant-based wellness. The demand is especially strong for herbal supplements, detox therapies, herbal skincare, and natural immunity boosters, with the healthcare segment comprising over 58% of the entire Ayurveda product and treatment market share in 2025.
Government initiatives such as AYUSH have catalyzed market growth, with the Ministry of AYUSH receiving a budget allocation of ₹3,992.90 crore for 2025-26, representing a 14% increase year-on-year. More than 8.9 crore beneficiaries accessed AYUSH services at Ayushman Arogya Mandirs in 2023 alone, while 5.4 crore people received treatments in government hospitals and dispensaries in 2021-22, indicating rapid adoption at the national scale. At the international level, India's herbal exports reached ₹5,400 crore, with high demand in the US, UAE, Germany, and Japan.
Digital transformation has also played a pivotal role. E-commerce and telemedicine have greatly improved access, supporting a boom in D2C Ayurvedic brands and online consultations. Major FMCG and pharmaceutical companies have expanded Ayurvedic product lines; for instance, Ayurvedic health drinks contributed over ₹13,000 crore in sales, and digital-first startups are bringing Ayurveda to Tier-2/3 towns where allopathy once dominated.
Overall, government support, massive consumer adoption, and digital innovation are reinforcing the global and domestic momentum behind Ayurveda and holistic medicine in India.
Supportive Government Policies and Initiatives
Proactive government support is a critical driver propelling India's traditional medicine market forward. The establishment of the Ministry of AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homoeopathy) institutionalized the government's commitment to promoting and regulating traditional healthcare systems. This dedicated ministry focuses on enhancing education, research, and standardization to boost the credibility and global acceptance of Ayurveda.
Key government initiatives include significantly increasing budgetary allocations for AYUSH infrastructure, research institutions, and wellness centers across the country. Programs like the National AYUSH Mission (NAM) aim to provide cost-effective AYUSH services by upgrading hospitals and dispensaries and integrating them into the public health network. Furthermore, the government has been actively promoting the scientific validation of traditional remedies through bodies such as the Central Council for Research in Ayurvedic Sciences (CCRAS), which funds research and clinical trials to establish an evidence-based framework for Ayurvedic treatments.
To ensure quality and build consumer trust, the government has introduced certification mechanisms, such as the AYUSH Mark. It has also signed Memorandums of Understanding (MoUs) with multiple countries and collaborated with global organizations like the World Health Organization (WHO) to establish international standards for Ayurveda. These policy-driven efforts legitimize traditional practices, foster innovation, and create a favorable ecosystem for both domestic and global market expansion.
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Key Market Challenges
Lack of Standardization and Quality Control
One of the biggest challenges in India's traditional medicine market is the lack of standardization and quality control in Ayurvedic, herbal, and other alternative medicine products. While Ayurveda adoption grows rapidly—over 92% of Indian households now use Ayurvedic products—the sector faces significant inconsistencies in product quality and ingredient potency across brands. Independent studies have recently found that more than 20% of Ayurvedic medicines sold online contain harmful levels of heavy metals such as lead, mercury, or arsenic, raising concerns about consumer safety. Adulteration and substitution of genuine herbs have been confirmed as common practices, with 77 raw drug samples analyzed showing widespread issues in roots, barks, leaves, and other plant parts.
India’s Ayurvedic sector remains fragmented, with thousands of SMEs producing herbal medicines—many not consistently following Good Manufacturing Practices (GMPs) or standardized extraction techniques. As a result, variability in product efficacy and exposure to contaminants, pesticides, or synthetic additives persists. Scientific validation is another bottleneck; a majority of Ayurvedic treatments lack robust clinical trials or peer-reviewed evidence that meets global regulatory standards, which restricts mainstream healthcare acceptance and international market access.
To address these challenges, the Ministry of AYUSH has initiated reforms, such as the "One Herb, One Standard" policy and mandatory GMP compliance under the Drugs & Cosmetics Act, 1940. However, enforcement is uneven, especially among smaller manufacturers and in local markets. New digital initiatives like the Ayush Suraksha Portal rolled out in May 2025 are designed to collect and track reports of misleading advertisements and adverse drug reactions, aiming to increase transparency and accountability.
Strengthening regulatory frameworks, mandatory testing, increased investment in research and clinical trials, and supply chain traceability are critical for enhancing consumer trust. As global demand rises for Ayurvedic and herbal remedies, India’s leadership in quality assurance and scientific validation will be essential to ensure safety, efficacy, and global market credibility.
Key Market Trends
Increasing Clinical Research & Scientific Validation
A significant trend shaping India's traditional medicine market is the growing emphasis on clinical research and scientific validation of Ayurveda, herbal medicine, and other alternative therapies. By August 2025, India has produced more than 7,243 clinical research publications and 17,358 pre-clinical research studies in the AYUSH domain, with 10,602 focused on drug research and 8,520 on fundamental research. The Ministry of AYUSH, along with bodies such as CCRAS and ICMR, is expanding investments in rigorous randomized controlled trials, molecular research, and multi-centric studies targeting chronic diseases like diabetes, obesity, arthritis, and cardiovascular disorders.
Collaborative efforts are rising, with AYUSH institutions and allopathic medical colleges jointly conducting research. For example, recent randomized trials have compared Ayurveda interventions to conventional drugs such as Methotrexate for rheumatoid arthritis and Amlodipine for hypertension, strengthening scientific evidence for integrative medicine. The AYUSH Research Portal now aggregates over 43,000 research publications, enhancing transparency and accessibility of data. Major conferences like Shalyacon 2025, organized by the All India Institute of Ayurveda, showcase live surgical demonstrations integrating Ayurvedic and modern practices to over 500 scholars and clinicians.
Driven by regulatory requirements from global markets, Indian ayurvedic companies are pursuing Good Clinical Practice (GCP) trials and standardized biomedical studies to meet FDA and EMA guidelines for export to markets in the U.S., Germany, and Australia. Biotechnology advances and AI-driven research have decoded key mechanisms of Ayurvedic ingredients such as Curcumin, Ashwagandha, and Brahmi, with peer-reviewed studies demonstrating their anti-inflammatory, adaptogenic, and neuroprotective properties.
Despite these improvements, scaling research, securing funding, and harmonizing regulations with global standards remain challenges. With stronger government support, international partnerships, and a growing shift towards integrative medicine, India's traditional medicine sector is gaining market credibility and is well-positioned for even greater global acceptance.
Digital Transformation and E-commerce Boom
Rapid digitalization and a surge in e-commerce are fundamentally transforming India's traditional medicine landscape. As of 2025, online retail and D2C channels account for over 40% of Ayurvedic product sales, with modern brands reaching millions of customers nationwide—especially in Tier-II and Tier-III cities once dominated by allopathy. Leading FMCG players like Dabur, Patanjali, and Himalaya, as well as D2C disruptors such as Kapiva, The Ayurveda Co., and Nat Habit, have posted substantial growth by selling exclusively via platforms like Amazon, Nykaa, Flipkart, and health-tech portals like 1mg and PharmEasy. For instance, Nat Habit reported revenue of ₹130 crore in FY2025, reflecting a 62% year-on-year jump, and served over 3.5 million Indian customers through its omnichannel digital strategy.
Telemedicine and virtual consultations have democratized access to Ayurvedic practitioners, with platforms such as Ayush Sanjeevani, NirogStreet, and Jiva Ayurveda enabling online appointments and dosha-based advice. The broader telemedicine market in India is forecast to reach $5.5 billion by the end of 2025, with up to 20% of all medical consults expected to be virtual and personalized.
AI-powered solutions are reshaping consumer engagement; brands use gamified dosha quizzes and data-driven recommendations for personalized wellness, making Ayurveda relevant for Gen Z and Millennials. Social media content, influencer partnerships, and user reviews are driving education and trust, while digital platforms have expanded Ayurveda’s reach to international customers and underserved rural areas.
Despite concerns about misinformation and consistency in the digital marketplace, the technology-led expansion of Ayurvedic brands is fueling growth, transparency, and consumer empowerment like never before in India's holistic health sector.
Growing Consumer Focus on Preventive Healthcare and Wellness
A third major trend driving India's traditional medicine market is a profound shift in consumer mindset towards preventive healthcare and holistic wellness. Spurred by the global health crisis and an increasing awareness of lifestyle-related diseases, consumers are proactively seeking natural and traditional solutions to boost immunity, manage stress, and maintain long-term health rather than just treating illnesses. This move from a curative to a preventive healthcare model has significantly expanded the market for Ayurvedic and herbal products.
This trend is evident in the surging demand for products like immunity boosters such as Chyawanprash, Giloy, and Tulsi drops, adaptogens for stress management like Ashwagandha, and supplements for general vitality. Modern consumers, grappling with hectic lifestyles, are turning to traditional remedies as a safe and sustainable way to support their physical and mental health. This consumer pull is encouraging brands to launch new product lines specifically targeting wellness goals, such as improved sleep, enhanced cognitive function, and better digestive health. This focus on wellness is amplified by social media and wellness influencers who educate the public on integrating traditional practices into daily routines, successfully marketing Ayurveda as a holistic lifestyle choice.
Segmental Insights
Form Insights
Based on Form, Capsules and Tablets have
emerged as the dominant segment in the Indian traditional medicine market in
2024. This is due to their convenience, precise dosage, longer shelf life, and
ease of consumption. Unlike traditional decoctions or powders, which require
preparation, tablets and capsules offer a standardized,
ready-to-use alternative, making them highly popular among both urban
and rural consumers. Ayurvedic and herbal companies such as Patanjali,
Dabur, Himalaya, and Baidyanath have heavily invested in tablet and
capsule formulations, ensuring they meet modern consumer preferences and
regulatory standards.
The demand for capsule and tablet-based
formulations has surged, particularly in the post-pandemic era, where herbal immunity boosters such as Giloy, Ashwagandha, and Tulsi tablets have experienced widespread adoption. Additionally, increasing
medical validation and clinical research on Ayurvedic formulations have
strengthened consumer confidence in standardized dosage formats, further
boosting their popularity.
Disease
Indication Insights
Based on Disease Indication, Digestive
Disorders have emerged as the dominating segment in the India traditional
medicine Market in 2024. due to the high prevalence of gastrointestinal
issues, lifestyle-related digestive problems, and the deep-rooted use of
Ayurvedic and herbal remedies for gut health. With India ranking among the
highest globally in cases of acidity, indigestion, and constipation, the demand
for natural digestive solutions continues to rise. Ayurvedic
formulations like Triphala, Ajwain, Jeera, and Aloe Vera-based
products have been widely used for centuries, with companies such
as Dabur, Himalaya, and Baidyanath offering targeted herbal
supplements to address bloating, acid reflux, and irregular bowel movements.
Moreover, the shift in dietary habits, increased
consumption of processed foods, and rising stress levels have led to a
surge in acid reflux, irritable bowel syndrome (IBS), and liver-related
disorders, further driving demand for traditional remedies. Post-pandemic, the
awareness of gut health and immunity has increased, pushing more consumers
toward herbal and Ayurvedic digestive aids as safer alternatives to
synthetic antacids and laxatives.
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Regional Insights
Based on Region, South India has emerged as the dominating region in the India Traditional Medicine Market in 2024. It is driven by strong Ayurvedic heritage, a well-established wellness tourism industry, and government initiatives supporting AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homeopathy). The region, particularly Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh, has a deep-rooted cultural and medicinal history in Ayurveda and Siddha, making it a key hub for traditional healing practices.
One of the most significant contributors to South India's dominance is its flourishing Ayurveda-based medical tourism industry. Kerala, known as the "Land of Ayurveda," attracts thousands of domestic and international visitors seeking holistic treatments, wellness retreats, and Panchakarma therapies. The Ministry of Tourism (2023) reported that 22.7% of visitors from West Asia traveled to India for medical purposes, with a significant portion opting for Ayurvedic treatments in South India. Additionally, the region is home to some of the top Ayurvedic research institutes and universities, further driving innovation and credibility in the sector.
South India also boasts a high awareness and acceptance of traditional medicine, with a significant portion of the population relying on Ayurvedic, Siddha, and herbal medicines for preventive healthcare and the management of chronic diseases. The presence of leading Ayurvedic and herbal companies, such as Kottakkal Arya Vaidya Sala, The Himalaya Drug Company, and Arya Vaidya Pharmacy (AVP), has strengthened the market, ensuring product availability and driving export growth.
Recent Development
- In September 2025, a free AYUSH Awareness and Health Check-up Camp was successfully organized in Reasi under the supervision of Dr. Nuzhat Bashir Shah, Director of AYUSH, Jammu and Kashmir. The initiative aimed to promote holistic health and highlight the benefits of traditional systems of medicine. A large number of residents participated, receiving free medical consultations, health check-ups, and AYUSH medicines. Specialists from Ayurveda, Unani, Yoga, and Homoeopathy provided guidance on disease prevention, lifestyle management, and natural therapies.
- In July 2025, India became the first country to digitize its traditional medical knowledge through an AI-powered platform, the Traditional Knowledge Digital Library (TKDL). Covering Ayurveda, Siddha, and Sowa-Rigpa, the initiative seeks to preserve ancient practices and foster advanced research. Supported by the Government of India and the World Health Organization (WHO), this milestone marks a transformative step in safeguarding and modernizing traditional medicine for global accessibility.
- In May 2025, the Ministry of Ayush signed a Memorandum of Understanding (MoU) with the World Health Organization (WHO) to develop a dedicated Traditional Medicine module within the International Classification of Health Interventions (ICHI). This collaboration, emphasized by Prime Minister Narendra Modi, aims to standardize Indian traditional practices, such as Ayurveda, Yoga, Siddha, and Unani, at a global level, thereby enhancing research, integrating them into modern healthcare, and securing international recognition.
- In May 2025, at the 78th World Health Assembly in Geneva, India reaffirmed its commitment to the newly adopted WHO Global Strategy on Traditional Medicine 2025–2034. India pledged continued support for embedding traditional medicine knowledge into national and international health systems, underscoring its global leadership in the field.
- In January 2025, during the Indonesian President's visit to India, a Memorandum of Understanding (MoU) was signed between the Pharmacopoeia Commission for Indian Medicine & Homoeopathy (Ministry of Ayush) and the Indonesian Food and Drug Authority. This partnership represents a significant step toward strengthening quality assurance frameworks in traditional medicine across both countries.
- In December 2024, India launched AYUSH Academic Chairs in five countries to promote traditional medicine globally, thereby strengthening research in Ayurveda, Yoga, and Siddha. These chairs, established in leading international universities, aim to enhance academic collaborations, foster scientific validation, and integrate traditional Indian medicine into global healthcare systems, thereby reinforcing India’s leadership in holistic wellness.
- In September 2024, the Ayush Ministry launched a technical brief on AI in traditional medicine, highlighting its role in enhancing research, diagnostics, and personalized treatments. The initiative aimed to integrate artificial intelligence with Ayurveda, Siddha, and other traditional practices, thereby fostering data-driven insights, improving efficacy, and promoting global acceptance of India’s holistic healthcare systems.
Key Market Players
- Arogya
Ayurveda Kendra
- Patanjali
Ayurved Limited
- Himalaya
Global Holdings Ltd.
- Baidyanath
Group
- Dabur
Ltd
- Swastik
Ayurveda
- Navayur
Herbals
- The
Divine Ayurveda
- Arlak
Ayurveda Pvt Ltd
|
By Product
|
By Form
|
By Disease Indication
|
By Distribution Channel
|
By Region
|
- Herbal Medicine
- Ayurvedic Medicine
- Unani Medicine
- Alternative Medicine
- Homeopathy Medicine
- Others
|
- Capsules and Tablets
- Powders and Granules
- Liquid Extracts
- Syrups
- Creams and Ointment
- Others
|
- Cardiac Disorders
- Bone and Joint Disorders
- Gynecological Disorders
- Neurological and Mental Disorders
- Digestive Disorders
- Others
|
- Hospitals
- Retail Pharmacies
- Online Pharmacies
|
- East India
- West India
- North India
- South India
|
Report Scope
In this report, the India Traditional Medicine
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- India Traditional Medicine
Market, By
Product:
o Herbal Medicine
o Ayurvedic Medicine
o Unani Medicine
o Alternative Medicine
o Homeopathy Medicine
o Others
- India Traditional Medicine
Market, By
Form:
o Capsules and Tablets
o Powders and Granules
o Liquid Extracts
o Syrups
o Creams and Ointment
o Others
- India Traditional Medicine
Market, By
Disease
Indication:
o Cardiac Disorders
o Bone and Joint Disorders
o Gynecological Disorders
o Neurological and Mental Disorders
o Digestive Disorders
o Others
- India Traditional Medicine
Market, By
Distribution
Channel:
o Hospitals
o Retail Pharmacies
o Online Pharmacies
- India Traditional Medicine
Market, By Region:
o East India
o West India
o North India
o South India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the India Traditional Medicine Market.
Available Customizations:
India Traditional Medicine Market report with the
given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
India Traditional Medicine Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]