Ayurveda spreads its wings

Over the last few years, India has become one of the fastest-growing economies. The beauty and wellness industry here has seen steady growth in this time period.

According to a study jointly conducted by FICCI and global consulting firm PriceWaterhouseCoopers, the size of India’s beauty and wellness market today stands at Rs 1,00,000 crore. The compounded annual growth rate in the sector is around 22%, while its projected market size is estimated to reach Rs 1,75,145 crore by next year.

This includes beauty products, beauty salon, spa and fitness businesses. The Spa Association of India pegs their industry at around Rs 15,000 crore and growing. Today, salons are offering spa treatments. It is believed that spa treatments are not merely “pampering luxury treatments”, but a requisite to looking and feeling good, as well as a driver for stress management and total well being.

It is estimated that the salon and spa business together account for 31% of the total size of the beauty and wellness market in the country. India is also the second largest consumer market in the world and awareness of beauty products and treatments is at an all-time high. This can be attributed to exposure to global trends, rising disposable incomes, changing lifestyles, increasing number of women in the work force and other related factors.

In fact, the retail sector is booming. No wonder foreign companies are targeting the Indian market. Over the last few years, the beauty business in India has also moved from the unorganised to more organised retail sectors, with the growth of shopping malls in metro cities and Tier 2 towns. The regular FMCG retail system of stores in local markets, both in the organised and unorganised sectors, is also growing.  

 Indeed, the beauty business in India is not only booming, but is expected to treble in the next five years. The herbal beauty business is driving the growth of this industry. There is also a burgeoning international market for alternative medicine and Ayurvedic/herbal beauty care.

Ayurvedic beauty care can play an important role in our economy, not only in terms of economic growth, but also to achieve social stability, generate employment, create wealth and preserve culture.

Considering India’s immense empirical knowledge of the healing power of plants, Ayurvedic health, beauty care products and services also have tremendous potential for growth internationally. In the present scenario of globalisation, the challenge is to develop our cultural industries to compete in the international market.

Currently, the cosmetic industry comes under the purview of the Drugs and Cosmetics Act of 1940. It is the licensing body, which has laid down the rules and regulations for the manufacture of cosmetics.

An important challenge is the need for standardisation of cosmetic products manufactured in India. We have bodies for certification, like GMP and ISO, but there is greater need to see that international best practices and manufacturing guidelines are met in the beauty industry. Quality assurance can only attained through regular tests conducted on manufactured products, for which guidelines should be set.

Another important challenge is the need for professionally qualified personnel. The government’s projects for skill development can help to train people for the beauty and spa sector.

Ayurvedic beauty care, as a component of service sector, also offers great scope for employment and entrepreneurship for women. Marketing of Ayurvedic products is another important challenge, especially for the entrepreneur.

This is one area where government direction, assistance and encouragement are needed.  

It is necessary to learn about the market and make use of changing conditions, like the internet, commercial advertising methods, e-commerce and different business models, among others.

Products and services are needed for the global market and this requires effort at various levels; from the government, research institutions, vocational training institutions, export development and trade agencies.

Markets need to be explored. Presenting products in a globally attractive manner is also essential, along with knowledge of the demands of the global market. The government can provide support in identifying markets, trade and promotions. Public sector banks and government finance schemes can increase awareness of the avenues of finance available.

Skill development and vocational training in beauty and wellness need to be geared up not only for the international market, but also to compete with international brands in the Indian market.

Our traditional knowledge of herbal healing is a real boon, but it needs to be related to modern demands and techniques. That is why a great deal of attention has to be directed towards research and development, product innovation and improvement in quality, in keeping with international standards, and also combining traditional knowledge with advanced scientific techniques.

For Indian businesses to build global brands, it is necessary to create awareness of the country from which the brand has emerged. Quality development is also a key to building up the image of the country, which enters the global market. Selling in the global market and competing with leading brands has helped us in meeting international standards.

For me, it is a dream come true to see the worldwide recognition of Ayurveda. I strongly believe that India’s plant power can lead the international cosmetic industry within the next decade. It has proved to be successful through the most exacting test of them all – the test of time.

The author has received international acclaim for taking India’s herbal beauty care worldwide