Ayurveda has found a new strategic role in India’s FMCG playbook, moving from a niche wellness choice to a serious growth lever for large consumer companies.
As volume growth in traditional categories softens, national players are increasingly acquiring regional and digital-first ayurveda brands to stay relevant to changing consumer preferences.
A recent Economic Times story spotlighted this shift, tracking deals such as Emami’s acquisition of Axiom Ayurveda, Dabur’s investment in premium ayurvedic skincare, and Reliance Retail’s move into nature-led beauty and wellness.
Read the complete story at: https://m.economictimes.com/tech/startups/fmcgs-buying-up-ayurveda-startups-for-healthy-growth/amp_articleshow/129988114.cms
Global players, too, are deepening their bets on Indian ayurveda brands, underscoring the category’s exportable potential.
In this context, Ankur Bisen, Senior Partner at The Knowledge Company (TKC), provided a clear-eyed view on what is really driving these moves.
The Growth Problem Behind the Ayurveda Bet
Behind the flurry of acquisitions lies a structural challenge: subdued volume growth across India’s FMCG sector.
Despite a broad portfolio footprint, many large companies are finding that their existing brands are not fully aligned with shifting demand patterns in health, beauty and nutrition.
Ankur Bisen captures this disconnect succinctly:
“Most FMCG majors have been struggling with volume growth for the last two to three years. Either their portfolios are not aligned with changing consumption patterns, or demand itself has plateaued. In India, both are true.” — Ankur Bisen, Senior Partner, The Knowledge Company
This dual reality, portfolio misalignment and demand plateauing—creates pressure to buy into categories that still have headroom and cultural credibility, which is where Ayurveda fits in.
Ayurveda as a Bridge to New Consumers
Ayurveda-led brands sit at the intersection of tradition, wellness and premiumisation. They appeal to consumers seeking “natural” and “clean” products but expect modern formats, digital discovery and an aspirational brand language.
For incumbents, acquiring such brands delivers three advantages in one move: access to digitally native consumers, credibility in nature-based propositions, and a stronger presence in premium price tiers.
Rather than trying to retrofit legacy brands into this space, buying a focused ayurveda player allows faster entry with lower execution risk.
At the same time, the broader herbal and ayurveda healthcare segment in India remains underpenetrated compared to global benchmarks, suggesting long-term upside for disciplined investors.
From Scattered Bets to Concentrated Capital
The Economic Times analysis, drawing on Tracxn data, points to an important shift in how capital is flowing into this space.
While the number of funding rounds for D2C ayurveda and natural brands has declined, overall funding has inched up, indicating more concentrated bets on a smaller set of scale-ready players.
For strategic buyers, this means:
– They are competing for a narrower pool of proven platforms with established brand equity.
– Valuations increasingly reflect scaled performance rather than early-stage promise.
– Integration and value-creation capabilities become as important as the deal itself.
In other words, the market is transitioning from exploratory, scattered investments to deliberate portfolio-shaping transactions.
How TKC Supports FMCG and D2C Leaders
The Knowledge Company’s Retail & Consumer Goods advisory practice works with incumbents and challengers to convert such shifts into durable competitive advantage.
The Knowledge Company’s support spans:
As Ayurveda moves from being an “alternative” to an integral part of the mainstream FMCG strategy, leaders will need a clear, evidence-backed roadmap, not just isolated deals.
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