The estimated size of herbal healthcare and personal care market in India is only between USD 550 to 650 million, as against the global market size of USD 62 billion, observed a latest report of Cygnus Business Consulting & Research on Indian Systems of Medicine (ISM).
The Ayurveda market in India is estimated to be USD 333 mn in 2004, while Homeopathy has a market share of about 14 per cent in ISM and stands at USD 57.2 million. Unani market is valued about (USD 9.5mn) and Siddha about USD 0.5 mn.
However, India's total export of ISM products to global markets worked out at USD 23.3 mn in 2004-05, which is 7.53 per cent higher compared to that in 2003-04. There are approximately about 7000 manufacturing units of Ayush drugs in India. The large number of tiny manufacturing units and a less number of large players characterizes the industry scenario, said the report.
It observed that ISM is an area of core competence in India in the field of medical science. An important feature of the global market is that the products as well as services of ISM are gaining popularity, especially among the high-income groups around the world with the major markets being the developed countries. ISM includes Ayurveda, Homeopathic, Unani, Yoga, Siddha and Naturopathic treatments. Each system of treatment has its own ancient method of diagnosis and treatment for curing diseases.
In India, those who cannot afford modern medicines practice these traditional medicinal systems, especially in rural areas. Of late, ISM is slowly emerging as a life style drug, as nutraceuticals, as cosmoceuticals and other means of allied treatment are evolving.
Less than a dozen major companies have dominated the industry for decades, joined recently by a few others that have followed their lead, and there are today 30 companies doing a million dollars or more per year in business to meet the growing demand for Ayurvedic medicine. Most of the larger Ayurvedic medicine suppliers provide materials other than Ayurvedic internal medicines, particularly in the areas of food and toiletries.
Indian system of medicine has many issues to be addressed and challenges to be met for the development of alternative medicine in India and the herbal industry. Pricing of the drugs is a major issue. Fixing the correct price for alternative medicines is an arduous task for the authorities. Since no clinical trials were conducted, drug dosage has not been fixed; the drugs controller of India has not been able to fix the correct price for these drugs. Above everything, underutilization of various government funds related to Ayush is a major issue, the report pointed out.
In India there are nearly 20,000 units manufacturing alternative medicines. Very few are recognized by Ayush or are following the guidelines set by it. This leads to an increase in the drug cost in these Ayush recognized organizations. Most of the alternative drug markers are not registered with Ayush and are not following Good Manufacturing Practices for drug preparation. Inconsistency of quality, policy issues, technology modernization, and competition with allopathic drugs are some of the other issues and challenges faced by the ISM.
The report suggested innovative marketing of ISM products and services as the primary focus at this stage for the industry. While India has resources, it needs to enhance its marketing skills, add improved labelling and packaging of the products. There is also need to set up excellence centers and require government initiatives. Product standardization and adhering to the global trade standards is an area that needs emphasis. Opportunity lies for India in the supply of raw materials. The ISM identified about 1500 medicinal plants of which 500 are used in the preparation of drugs. The National Medicinal Plant Board (NMPB) has also identified 32 prioritized medicinal plants, which are in demand in the domestic and international markets. Apart from the resources, India also has a sound knowledge in the field that can be disseminated overseas to en-cash the opportunity in education and research. Also there are a number of schemes and programmes run by the government to promote the industry that needs to be popularized.
The industry needs IPR protection, disseminating knowledge about herbal drugs, proper scientific documentation and scientifically proving the safety and efficacy of drugs through large-scale clinical trials. All this will favor in gaining a significant share in the global herbal market, the report added.