By Vidit Gard
Mumbai-headquartered Future Group, is entering the Ayurveda products market in efforts to reinvent itself . With popular brands in its kitty like Big Bazaar, Central, and Easyday, the company is now eyeing a yet another way to reap in profits.
Future Groups CEO Kishore Biyani was reportedly inspired by the Patanjalis seemingly short but successful stint in the Ayurvedic personal care market. Drawing from this success, the Future group now plans to launch an Ayurvedic hair oil product, alongside other products in the market.
The move is expected to be advantageous for the firm, thanks to early industry estimates concerning Ayurvedic products’ acceptance among Indian customers.
The Indian government established the Ministry of AYUSH (Ayurveda, Yoga and Naturopathy, Unnani, Siddha and Home opathy) in 2014, in efforts to better promote and market Ayurvedic products. It is estimated that the market size of Ayurvedic products will see a massive boomexpanding to three times its current size. The Ayurveda market is expected to go from a $2.5 billion to an $8 billion industry by 2022.
The expansion of the Ayurveda market
According to a report by global industry analysts, the market for the herbal products is expected to touch the $115 billion mark by 2020. Experts estimate thatwhile Europe emerges as the largest market, Asia Pacific is fast catching up by leveraging the traditionalist cultures of India and China.
Multinational companies like Unilever have launched a line of herbal products under the brand name Ayush inIndia. Companies like Himalaya and Dabur are major contributors to the market and are responsible for fulfilling the increased demands of such products from consumers.
And as per one industry estimate stated on ET, Indias personal care market forms Rs 9,000 crore valuation, of which 20-25% is captured by the Ayurvedic category. This includes premium players like Emami, and Forest Essentials alongside price warriors like Patanjali, whose products are priced relatively lower than its competitors.
The Ayurveda market is expected to go from a $2.5 billion to an $8 billion industry by 2022. Credit: Flickr CommonsWhat’s driving the Ayurvedic revolution?
Why have Ayurvedic products suddenly become so popular? The recent boom may have been fuelled by a fairly recent global anti-chemical movement, leading to more awareness about the traditional herbal products. Yet another contributing factor may be the massive consumer demand for herbal products, such as oil and creams, which in turn led to companies increasing their focus on developing and marketing Ayurvedic products. Lastly, international norms on animal testing can be restrictive for research on of new chemically-based products, which can be yet another incentive for companies to shift focus to herbal-based products.
Future Group’s strategy
What are Future Group’s plans on facing the already-established player, Patanjali, in the market? The company plans to gain traction via mergers and acquisitions. The company also plans to target the mass market, thereby gaining a wider ground to reach potential consumers. According to Motilal Oswal, Future Group has decided to increase the amount of its brands in its signature stores from 20% to 60% f.
Biyani’s ambitious goal is reportedly aimed at making Future Group a Rs 20,000 crore business by 2021-22. The firm also plans to capture the market by offering body washes at throw-away prices, thereby directly competing with the soap market. Focus on the retail expansion will also likely the company’s top priority, which may add to the company’s approximately 80,000 stores across India.
In efforts to ramp up business in the Ayurveda arena, the Future Group is looking improve its retail presence across Northeast India. Biyani also intends to introduce Desi Atta in the Indian market from the company’s flour mill. Meanwhile, the company is also aggressively scaling up its Easyday stores across various regions, while also opening , Big Bazaar outlets in Dibrugarh, Tezpur and other cities.
Business trends in the Ayurveda industry
From toothbrushes to jeans, night-wear to breakfast cerealsthe organic Ayurvedic revolution has caught everyones attention. The increased consciousness of consumers about the perils and disadvantages of using chemically made products has drawn many to switch to Ayurvedic products. Today, herbal products are present across categories such as food items, clothing, personal care, beverages and more.
Meanwhile, the Ministry of AYUSH has been geared towards monitoring higher education in Ayurveda. It is estimated that the Ayurveda products market will grow by 16% by 2021.