The Economics of Beauty
Ayurvedic and Herbal Brands
How brands built on Ayurveda and herbal ingredients like Patanjali, Himalaya and Dabur grew, and why "natural" became a powerful selling point.
Ayurvedic and herbal beauty products have a strong market in India.
Major brands
- Dabur (founded 1884).
- Himalaya Wellness (1930).
- Patanjali Ayurved, founded in 2006 by Baba Ramdev and Acharya Balkrishna, grew rapidly in the 2010s.
- Biotique, Forest Essentials and Kama Ayurveda in premium segments.
Why “natural” sells
- Trust in traditional Indian remedies.
- Concern about chemicals.
- Cultural identity.
Patanjali’s disruption
- Offered lower prices and “swadeshi” positioning.
- Forced multinationals to launch herbal variants, such as Colgate’s “Vedshakti”.
Regulation and claims
- Ayurvedic products are regulated under the AYUSH ministry.
- In 2024, the Supreme Court criticised Patanjali over misleading advertisements, highlighting the need for evidence-based claims.
Global demand
Indian herbal brands are exported to diaspora and wellness-focused consumers abroad.
The herbal variant
When herbal toothpastes gained market share, a global company launched its own Ayurvedic toothpaste to stop losing customers.
Thinking "natural" means proven or safe
Claims need evidence; natural products can also be misleading.
Key takeaways
- Dabur, Himalaya and Patanjali lead herbal beauty.
- "Natural" sells because of trust and identity.
- Patanjali's rise pushed multinationals to launch herbal lines.
- Misleading claims face regulatory scrutiny.
No recording for this one yet - EconReader can read it aloud for you.