India Traditional Medicine Market By Product, By Form, By Disease Indication, By Distribution Channel, By Region, Competition, Forecast & Opportunities, 2020-2030F

The India Traditional Medicine Market was valued 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. This growth is driven by increasing consumer interest in natural and holistic healthcare solutions, strong governmental support, and the rising global recognition of India's indigenous medical systems such as Ayurveda, Siddha, and Unani. The Ministry of AYUSH has played a significant role in promoting traditional healthcare practices through funding, policy initiatives, and integration with modern medicine. The country's prominence in wellness tourism-particularly in southern states like Kerala-has enhanced its global position as a center for Ayurveda and naturopathy. Growing research initiatives and scientific trials have further improved the credibility of traditional medicines. However, challenges such as quality control issues, lack of standardization, insufficient clinical validation, and raw material sourcing constraints continue to hinder broader acceptance. Nonetheless, with increasing investments, digital expansion, and export opportunities, the traditional medicine market in India is set for sustained growth, contingent on strengthened regulatory oversight and scientific substantiation.

Key Market Drivers

Expanding Ayurveda-Based Wellness & Tourism Industry

The Ayurveda-based wellness and tourism sector in India is witnessing notable growth, propelled by increasing global demand for holistic healthcare solutions and India's strong traditional medicine legacy. As per the Ministry of Tourism (2023), 22.7% of medical travelers from West Asia visit India, underscoring the country's growing reputation as a hub for health and wellness tourism. International patients are increasingly drawn to natural, non-invasive treatment options, particularly Ayurvedic therapies. Each year, India attracts around 2 million medical tourists from 78 countries, with a significant proportion seeking Ayurvedic and naturopathy care. Kerala, recognized globally as a center for Ayurveda, plays a key role in this trend, offering specialized wellness resorts and integrated healthcare programs that cater to international visitors seeking traditional therapeutic experiences.

Key Market Challenges

Lack of Standardization and Quality Control

The absence of consistent quality standards and control mechanisms remains a major barrier to the growth of India's traditional medicine market. Many Ayurvedic and herbal products lack uniform production protocols, resulting in variations in composition, efficacy, and safety across different batches and brands. Unlike conventional pharmaceuticals, these products are often not subject to stringent clinical testing or regulatory approval, raising concerns over their reliability. The lack of a centralized certification framework has led to market fragmentation, with numerous small and medium enterprises operating without adherence to Good Manufacturing Practices (GMP). Additionally, some herbal formulations have been found to contain contaminants such as heavy metals and pesticides, stemming from poor sourcing and processing methods. This compromises consumer trust and poses health risks, highlighting the need for stricter quality control and regulatory enforcement.

Key Market Trends

Increasing Clinical Research & Scientific Validation

A growing emphasis on clinical research and scientific validation is shaping the trajectory of India's traditional medicine market. As consumer demand for evidence-backed natural remedies rises, institutions are intensifying efforts to substantiate the efficacy of Ayurvedic and herbal treatments. The Ministry of AYUSH, in collaboration with agencies like the Central Council for Research in Ayurvedic Sciences (CCRAS) and the Indian Council of Medical Research (ICMR), is expanding clinical trials and pharmacological research. These initiatives aim to bridge traditional knowledge with modern scientific methodologies. Integrative healthcare models-linking AYUSH and allopathic systems-are being explored for chronic conditions such as arthritis, cardiovascular disorders, and diabetes. This shift toward research-backed traditional therapies is enhancing their legitimacy and fostering greater acceptance within the broader medical community.

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

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:

• Herbal Medicine
• Ayurvedic Medicine
• Unani Medicine
• Alternative Medicine
• Homeopathy Medicine
• Others

India Traditional Medicine Market, By Form:

• Capsules and Tablets
• Powders and Granules
• Liquid Extracts
• Syrups
• Creams and Ointment
• Others

India Traditional Medicine Market, By Disease Indication:

• Cardiac Disorders
• Bone and Joint Disorders
• Gynecological Disorders
• Neurological and Mental Disorders
• Digestive Disorders
• Others

India Traditional Medicine Market, By Distribution Channel:

• Hospitals
• Retail Pharmacies
• Online Pharmacies

India Traditional Medicine Market, By Region:

• East India
• West India
• North India
• 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).