India Ashwagandha Beverages Market Size
India Ashwagandha Beverages Market Size reached US$ 6.22 billion in 2024 and is expected to reach US$ 12.87 billion by 2032, growing with a CAGR of 9.52% during the forecast period 2025-2032.
The India Ashwagandha Beverages Market is experiencing significant growth, driven by increasing consumer demand for natural wellness solutions. Ashwagandha, a key ingredient in these beverages, is gaining popularity due to its adaptogenic properties, which help in stress reduction and overall well-being.
Companies are innovating to meet this demand. Heritage Foods launched Ashwagandha Milk in December 2020, combining the herbal extract with milk to boost immunity and vitality. The government's support for ashwagandha cultivation further bolsters the market. In October 2022, the Government of India initiated the cultivation of ashwagandha on a 200-acre plantation in Dindigul district, aiming to make it a hub for medicinal plants. This initiative underscores the commitment to promoting traditional medicine and meeting the growing demand for ashwagandha-based products.
India Ashwagandha Beverages Market Trend
The Indian ashwagandha beverages market is experiencing strong growth, driven by the increasing demand for functional drinks that support stress relief and overall well-being. With a rising preference for natural ingredients, ashwagandha is increasingly incorporated into teas, tonics, and RTD formats.
The market is also benefiting from the growth of e-commerce, allowing direct-to-consumer sales and better product accessibility. Companies are diversifying their offerings with products like ashwagandha gummies and powders, catering to varying consumer preferences. Furthermore, government initiatives to support ashwagandha cultivation are strengthening the supply chain, ensuring the availability of high-quality raw materials.
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Market Scope
| Metrics | Details | |
| By Product Type | Ashwagandha Tea, Ashwagandha Juice, Ashwagandha Smoothies, Ashwagandha-infused Water, Ashwagandha-based Energy Drinks, Others | |
| By Packaging Type | Bottles (Glass or PET), Cans, Cartons, Tetra Packs, Others | |
| By Application | Stress and Anxiety Relief, Energy & Stamina Enhancement, Cognitive Support, Immunity Boosting, Hormonal & Sexual Wellness, Others | |
| By Distribution Channel | Supermarkets/Hypermarkets, Health Food Stores, Convenience Stores, Online Retail, Others | |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth |
India Ashwagandha Beverages Market Dynamics
Rising Government Support for Ayurvedic Functional Beverages under Ayushman Bharat Mission
The Indian government's integration of AYUSH services into the Ayushman Bharat scheme is significantly boosting the ashwagandha beverages market. The Ministry of AYUSH has finalized 170 treatment packages, encompassing traditional therapies like Panchakarma, to be included in the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), thereby expanding access to Ayurvedic treatments.
Additionally, the establishment of 12,500 AYUSH Health and Wellness Centres under the National AYUSH Mission aims to provide holistic healthcare based on AYUSH principles, including the promotion of medicinal plants like ashwagandha. These initiatives reflect a concerted effort to integrate traditional medicine into mainstream healthcare, fostering increased demand for Ayurvedic products.
Limited Cold Chain Infrastructure for Herbal Beverage Distribution in Rural India
The limited cold chain infrastructure in rural India significantly hampers the distribution of herbal beverages like ashwagandha-based drinks. According to the National Centre for Cold-chain Development, while India has a substantial cold storage capacity, only about 15% of fruits and vegetables benefit from cold storage, and less than 5% are transported through the cold chain, leading to considerable post-harvest losses. This deficiency is particularly detrimental to perishable herbal products that require temperature-controlled environments to maintain their efficacy.
Government initiatives, such as the Integrated Cold Chain and Value Addition Infrastructure scheme under the Pradhan Mantri Kisan SAMPADA Yojana, aim to address these challenges by providing financial assistance for the development of cold chain facilities, including cold storages and refrigerated transport, to enhance the shelf life and quality of perishable goods. However, the current infrastructure remains inadequate, especially in remote areas, underscoring the need for accelerated investment and development in this sector.
India Ashwagandha Beverages Market Segment Analysis
The India ashwagandha beverages market is segmented based on product type, packaging type, application, distribution channel.
Dominance of Ashwagandha Tea in the Evolving Adaptogenic Beverage Landscape
Ashwagandha tea has become a prominent product in India's adaptogenic beverage sector, reflecting the country's deep-rooted Ayurvedic traditions and increasing global interest in herbal wellness. The Ministry of AYUSH has actively promoted the cultivation and awareness of ashwagandha through initiatives like the "Ashwagandha: A Health Promoter" campaign, aiming to educate the public on its health benefits. In Tamil Nadu, the state government has launched ashwagandha cultivation in districts like Dindigul, encouraging local farmers to engage in medicinal plant farming.
Additionally, institutions such as Banaras Hindu University have conducted awareness programs and distributed ashwagandha saplings to students and communities, fostering grassroots-level engagement with this medicinal herb. These concerted efforts underscore the growing prominence of ashwagandha tea in India's health and wellness landscape.
Sustainability Analysis
The sustainability of the ashwagandha beverages market in India is bolstered by government initiatives and growing consumer demand for natural wellness products. The Ministry of AYUSH reports an eightfold increase in ashwagandha exports over six years, highlighting its global appeal. Regions like Neemuch in Madhya Pradesh have significantly expanded cultivation, with production rising from 884.8 MT in 2018–19 to 1,519 MT in 2022–23.
Programs like the National AYUSH Mission promote sustainable farming of medicinal plants, including ashwagandha, supporting both environmental goals and rural economies. This synergy between policy and market demand positions ashwagandha beverages as a sustainable segment within India's health and wellness industry.
India Ashwagandha Beverages Market Major Players
The major players in the market include Patanjali Ayurved Limited, Dabur India Limited, Himalaya Wellness Company, Baidyanath Ayurved Bhawan Pvt. Ltd., Organic India Private Limited, Kapiva Ayurveda Pvt. Ltd., Sri Sri Tattva Private Limited, Charak Pharma Pvt. Ltd., Arya Vaidya Pharmacy (Coimbatore) Ltd., and Emami Limited.
Key Developments
- In September 2021, No.1 Botanicals, the only botanical drinks company in the world to use fresh extract, is launching Ashwagandha Water and Pure Ashwagandha Shots. This is the first time the renowned Indian root plant has been made into a pure extract drink and daily shots. The unique drink, using only the fresh root of the Ashwaghanda plant, comes from the team at No. 1 Botanicals and their partners, the world-leading experts in botanical science at The Royal Botanic Gardens Kew.
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Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
