What is 'Ayurveda'

Ayurveda is a system of medicine that originated in India over 2,000 years ago that relies on natural remedies. It is well-known and trusted by people in India, and it is now being commercialized throughout the country and gaining rapid market success in various industries, outperforming giants such as Colgate and Nestle in some product lines.


Patanjali is the leading producer of Ayurveda-based products, and it is the only company to directly challenge the industry incumbents in India, such as Unilever and Coca Cola. Although other companies such as Himalaya and Dabur have engaged in the Ayurvedic-based market, they haven't come close to Patanjali's success. Patanjali has been able to offer low prices and has found a way to break through market entry barriers such as high startup and manufacturing costs, achieving rapid success where its cohorts could not.

Why Are Ayurvedic Products So Successful?

One of the major obstacles to launching a new product is consumer resistance: people naturally shun the unfamiliar, and they prefer to stick with what they know. This is one of the biggest challenges for a new company to overcome when expanding into a market. Ayurveda is a trusted and well-established medicinal practice in India, so the new market for Ayurveda-based products has been able to avoid that obstacle entirely.

Another common obstacle is the cost of advertising a new product. If a company can't get the word out, no one will know it exists. Social media outlets have been key in breaking down this barrier and allowing Ayurveda products to gain traction without excessive spending on advertisements.

What Does This Mean for the Market?

The success of Ayurvedic products has signaled a wakeup call to the industry leaders in areas such as personal care, home goods, and consumer health, and they've been forced to reorient themselves in the market in order to keep up with shifting trends. More industry participants means more competition, and large corporations have reacted by producing the same types of products as companies such as Patanjali. For example, Ayurveda has sparked a revival in all-natural products, and the larger corporations have responded by producing their own natural product brands. It is a testament to the success of Patanjali that it has been able to influence the direction of such large, well-established brands.

Patanjali's low prices have also forced larger companies to become more competitive, which benefits the consumer, since higher quality products can be sold at lower prices.