Legacy ayurveda brands are embracing the new age wellness trend to stay relevant in a rapidly evolving market. This shift goes beyond just repackaging; it's about redefining who defines wellness for India's younger generation. The battle is between established companies built on trust and scale, and digital-first brands that focus on science-backed outcomes, clean labels, and lifestyle-led consumption. The outcome could significantly impact one of India's fastest-growing FMCG categories.
The stakes are high. India's health and wellness market was valued at around $40 billion in 2024, with nutraceuticals (including supplements, functional foods, and beverages) accounting for approximately $8 billion and growing at an impressive 11% compound annual growth rate between 2023 and 2027. This growth is fueled by a changing consumer base, with legacy brands facing pressure due to their older, regionally concentrated portfolios.
Traditional companies have seen slow growth over the last few years because their product offerings are geared towards an older generation and specific regional markets, as noted by Kiran Mahasuar, an assistant professor of strategy at SPJIMR, Mumbai. Dabur's and Hamdard's flagship brands, like Dabur Red Paste and Chyawanprash, are often seen as 'boomer brands,' not resonating with Gen Z's preferences for ingredients, appearance, and results.
The solution lies in a format shift. Leading legacy players acknowledge that wellness is no longer age-specific or episodic. They are adapting product design and positioning to meet modern lifestyles. For instance, Chyawanprash, traditionally a thick, sugary tonic, is now available in tablet form, and newer launches are increasingly sugar-free or low-sugar.
The challenge, however, goes beyond format. Ayurvedic concepts are often complex and unfamiliar to Gen Z, requiring reinterpretation rather than simplification. Dabur addresses this by reframing classical ideas into outcome-led language (immunity, gut health, stress relief) while retaining traditional formulations.
Hamdard Laboratories, a 117-year-old Unani medicine company, is also undergoing a cautious transition, focusing on sugar-free tablet and capsule versions of select products to cater to Gen Z's preferences. However, communication remains a hurdle, as concepts like blood purification are not easily relatable to younger consumers.
The growth contrast is striking. While legacy brands struggle, digital-native wellness brands have scaled rapidly. D2C brands, built around online discovery, influencer education, and quick-commerce, have attracted significant investments. Kapiva, for instance, raised over $60 million in Series D funding, and Hindustan Unilever acquired Oziva and a minority stake in Wellbeing Nutrition.
The edge for D2C founders lies in behavior-first design, focusing on belief and adherence. Legacy brands, despite their advantages, are seen as playing catch-up rather than reinventing themselves. The key to success lies in science-led innovation and outcome-driven solutions.
In conclusion, the wellness market is not a zero-sum game between legacy and startups. It's a convergence of strengths, where traditional players are racing to reinvent themselves to win over India's Gen Z consumers, who are increasingly focused on science and health-conscious lifestyles.
