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Forecast Period
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2026-2030
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Market Size (2024)
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USD
416.28 Million
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CAGR (2025-2030)
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9.21%
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Fastest Growing Segment
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Ayurvedic
Medicine
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Largest Market
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South India
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Market Size (2030)
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USD 707.85 Million
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Market Overview
The India traditional medicine market stood at USD 416.28 million in 2024 and is projected to reach USD 707.85 million by 2030, growing at a CAGR of 9.21% during the forecast period.
India’s traditional medicine sector is expanding steadily, supported by rising preference for natural therapies, policy support, and global interest in Ayurveda, Siddha, and similar systems. The Ministry of AYUSH has strengthened adoption through funding, policy initiatives, and integration with modern healthcare practices. Growth in wellness tourism, particularly across southern states, has reinforced India’s position as a global destination for Ayurveda and naturopathy. Research activity is also increasing, improving scientific validation and clinical acceptance of herbal treatments.
Despite favorable momentum, structural challenges remain. Quality consistency and standardization continue to affect consumer confidence, especially with the presence of counterfeit and low-quality products. Limited scientific documentation and the shortage of large-scale clinical trials restrict broader integration into mainstream healthcare settings.
Supply constraints for high-quality raw materials, along with regulatory complexity, also limit expansion. Even so, higher investment flows, digital platforms, and export demand are expected to support long-term growth. Stronger regulatory oversight and deeper scientific validation will remain critical for sustained progress.
Key Market Drivers
Expanding Ayurveda-Based Wellness and Tourism Sector
India’s Ayurveda-based wellness and tourism sector is expanding steadily, supported by global interest in holistic care, policy backing, and long-standing traditional practices. The Ministry of Tourism reports that 22.7% of visitors from West Asia travel to India for medical purposes, reinforcing the country’s role in medical and wellness travel. International patients increasingly prefer non-invasive, natural therapies, with nearly two million visitors from 78 countries seeking treatment annually. Kerala remains a key center, supported by specialized resorts, wellness facilities, and integrated programs.
Strong Domestic Adoption and Practitioner Network
Within India, Ayurveda is deeply integrated into daily healthcare habits. Nearly 80% of the population uses some form of Ayurvedic treatment, supported by around 250,000 registered practitioners nationwide. This widespread usage, combined with rising preference for preventive care, organic remedies, and personalized wellness plans, has strengthened India’s position as a global base for traditional medicine. Awareness of AYUSH systems remains high across regions, supporting investments in hospitals, wellness retreats, and digital consultation platforms.
Rising Consumer Demand for Natural Remedies
Demand for natural and plant-based remedies continues to accelerate growth. During 2024–25, 92% of Indian households purchased Ayurvedic products, reflecting strong cultural acceptance and growing health awareness. Younger consumers are increasingly adopting Ayurvedic supplements to manage lifestyle conditions such as stress, obesity, and diabetes. Products including Chyawanprash, Ashwagandha, and turmeric-based formulations have maintained strong demand, with healthcare applications accounting for over 58% of Ayurveda-related product and treatment share in 2025.
Supportive Government Policies and Initiatives
Government policy remains a key growth driver. The Ministry of AYUSH received a budget allocation of ₹3,992.90 crore for 2025–26, marking a 14% year-on-year increase to support infrastructure, research, and service delivery. Initiatives such as the National AYUSH Mission and research bodies like CCRAS are strengthening access, scientific validation, and quality assurance. Certification frameworks, international collaborations, and export growth continue to support expansion, positioning India’s Ayurveda and traditional medicine ecosystem for sustained domestic and global progress.
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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 and Scientific Validation
Clinical research and scientific validation are gaining priority within India’s traditional medicine sector. By August 2025, more than 7,243 clinical publications and 17,358 pre-clinical studies had been produced in the AYUSH domain, covering drug development and fundamental research. The Ministry of AYUSH, along with CCRAS and ICMR, is increasing investment in randomized controlled trials, molecular studies, and multi-centric research focused on chronic conditions such as diabetes, arthritis, obesity, and cardiovascular disorders.
Collaboration between AYUSH institutions and allopathic medical colleges is strengthening evidence for integrative care. Recent trials have compared Ayurvedic therapies with conventional drugs for conditions like rheumatoid arthritis and hypertension, supporting wider clinical acceptance. Research accessibility has improved through the AYUSH Research Portal, which aggregates over 43,000 publications, while national conferences continue to highlight integrative surgical and therapeutic practices.
Digital Transformation and E-commerce Expansion
Digital adoption is reshaping the traditional medicine landscape across India. By 2025, online retail and D2C channels accounted for over 40% of Ayurvedic product sales, improving access in Tier-II and Tier-III cities. Established FMCG companies and digital-first brands have scaled rapidly through e-commerce platforms and health-tech portals, supported by omnichannel strategies and direct consumer engagement.
Telemedicine has expanded access to Ayurvedic consultations by offering online platforms that provide personalized guidance and follow-up. The broader telemedicine segment is expected to grow strongly, supporting virtual consultations and personalized care models. AI-based tools, social media engagement, and digital education are also helping brands connect with younger consumers and international audiences, strengthening visibility and trust.
Growing Consumer Focus on Preventive Healthcare and Wellness
Consumer preferences are steadily shifting toward preventive healthcare and holistic wellness. Rising awareness of lifestyle-related conditions has encouraged the use of traditional remedies to support immunity, stress management, and long-term health. This shift from treatment-based care to preventive wellness has expanded demand for Ayurvedic and herbal products across age groups.
Products focused on immunity, stress relief, digestion, sleep, and cognitive health are seeing sustained uptake. Consumers are integrating traditional practices into daily routines, encouraged by digital content and wellness-led communication. This emphasis on prevention and balance continues to support product innovation and reinforces Ayurveda’s role as a long-term wellness solution rather than short-term therapy.
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 Jan 2026, Kapiva announced a ₹50 crore fund to support Ayurveda R&D, aimed at backing research and innovation efforts.
- In Nov 2025, Dabur indicated plans to set aside up to INR 5 billion to invest in health, Ayurveda, and food businesses.
- In Nov 2025, Himalaya Wellness launched a new personal-care product (Cocoa Butter Intensive Serum Body Lotion) through a brand-campaign partnership, reflecting continued product innovation within the herbal/natural brand ecosystem.
- In Dec 2025, Dabur rolled out an “Ayurveda modernisation” initiative, including refreshed packaging across Ayurvedic medicines/ethical products and expanded awareness/engagement activities.
- 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
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By Product
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By Form
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By Disease Indication
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By Distribution Channel
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By Region
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- Herbal Medicine
- Ayurvedic Medicine
- Unani Medicine
- Alternative Medicine
- Homeopathy Medicine
- Others
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- Capsules and Tablets
- Powders and Granules
- Liquid Extracts
- Syrups
- Creams and Ointment
- Others
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- Cardiac Disorders
- Bone and Joint Disorders
- Gynecological Disorders
- Neurological and Mental Disorders
- Digestive Disorders
- Others
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- Hospitals
- Retail Pharmacies
- Online Pharmacies
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- East India
- West India
- North India
- South India
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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]