The Business of Ayurveda: Why Women-Led Startups Are Thriving in This Space

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Varun Bhardwaj

27 Mar 2025 — 4 min read

Akshi Khandelwal, Butterfly Ayurveda, The Business of Ayurveda: Why Women-Led Startups Are Thriving

This article has been contributed by Akshi Khandelwal, Founder & CEO, Butterfly Ayurveda.

Indian households have practiced Ayurveda for many years. What began as conventional treatment methods and home cures has now grown into a flourishing industry. We can observe its impact on everything from food and drink to skincare and wellness.

Ayurveda has also gained popularity recently among entrepreneurs looking to bring its benefits to a larger audience in innovative ways. Interestingly, a notable portion of these are run by women.

What, though, is causing this trend? Why are women-led startups in the Ayurvedic industry doing so well?

Ayurveda’s Increasing Market Potential

The demand for Ayurvedic products has grown as more individuals are turning to natural & organic wellness solutions. According to some reports, India’s Ayurveda market will expand at a CAGR of more than 15 percent in the years to come. For women entrepreneurs, this presents a promising opportunity to enter and make a mark in the industry.

Factors Driving Women Entrepreneurs in Ayurveda

1. Cultural Heritage and Knowledge

Many women grow up learning Ayurvedic practices from their mothers and grandmothers. This inherited wisdom gives them authentic insights that go beyond textbook understanding. They've witnessed these practices in action, which lends credibility to their ventures.

2. Consumer Trust in Women-Led Wellness Brands

Customers are more likely to trust women-led brands when it comes to skincare and wellness. Many of these brands focus on transparency, sustainability, & ethical sourcing. Today’s conscious customers really appreciate these values.

3. The Digital Revolution and Direct-to-Consumer (D2C) Model

The rise of e-commerce has made it easier for women to enter the Ayurvedic market. They can directly approach customers with the aid of social media, influencer marketing, and online stores and no longer have to depend on traditional retail networks. A considerable share of women-led brands have successfully built strong online communities by engaging customers through content-driven strategies that educate and inform about Ayurvedic practices.

4. Government Initiatives and Funding Support

The Indian government has launched a number of programs, including Startup India initiatives and Mudra loans, to encourage women entrepreneurs. At the same time, there is growing investor interest in women-led health & wellness brands.

5. Creative Product Lines

Unlike conventional Ayurvedic companies, several new women-led ventures are focusing on niche and unique product categories - personalized skincare, organic teas, Ayurvedic nutraceuticals, & menstrual wellness products. They are able to carve out a distinct space in a crowded market because of this differentiation.

6. Sustainability and Ethical Sourcing

Many female business owners are dedicated to sustainable business concepts. They value fair trade, eco-friendly packaging, and naturally sourced ingredients, all of which are in line with the global trend toward ethical consumerism. This emphasis on sustainability draws in a devoted clientele alongside building their brand reputation.

7. Ayurveda Experts Venturing into Entrepreneurship

Nowadays, a lot of female pharmacologists and Ayurvedic physicians are starting their own product lineups or working with entrepreneurs who wish to get into this market. Their business spirit and longstanding knowledge of Ayurvedic formulas are resulting in the development of superior, scientifically supported products.

Obstacles and the Path Ahead

Even with its progress, Ayurveda still presents difficulties for female business owners. A major challenge is securing funding. Bigger, more established brands continue to dominate the wellness sector. This makes it hard to draw in investors. Persuading stakeholders to invest in new Ayurvedic ventures can be an uphill battle. Strong business plans and a unique scalability vision would be necessary.

Funding for R&D and new product development is also crucial. When items are launched without adequate research, credibility and customer trust may suffer. To help entrepreneurs in creating high-quality, verified products, government agencies and investors need to offer greater assistance in this area.

Another challenge is competition. Since well-known Ayurvedic companies have a large portion of the market, it could be challenging for startups to make an impression. Women entrepreneurs need to concentrate on developing strong customer trust. They can offer specialized products and innovate them further to stand out.

Regulatory hurdles also add complexity. Businesses that use Ayurveda must follow strict government laws. This includes things like obtaining approval from organizations such as the FSSAI & the AYUSH Ministry. It can be expensive & time-consuming to make sure safety rules, quality control, and licensing requirements are met.

The outlook looks promising, nevertheless. Women entrepreneurs can make their mark with strategic planning and persistence. For the women interested in Ayurveda, the message is clear: there has never been a better time to blend traditional knowledge with contemporary market needs.