Patanjali Ayurveda to reach the $1 Billion mark by 2020: ASSOCHAM– TechSci Research paper - chaprama | Insights from the world of Technology and Lifestyle


Monday, January 2, 2017

Patanjali Ayurveda to reach the $1 Billion mark by 2020: ASSOCHAM– TechSci Research paper

Patanjali Ayurveda, steered by Yoga guru Baba Ramdev has now turned to be the most disruptive force in the FMCG Fast Moving Consumer Goods) market in India. It is expected to reach the $1 Billion mark by 2020 according to an ASSOCHAM– TechSci Research paper.

patanjali ayurved

Patanjali which started its portfolio with Ayurvedic medicines has now expanded its product portfolio into multiple categories which include personal care, food and beverages.

Patanjali witnessed a whopping 146% annual growth in 2016 to reach $768 million. While its peers Dabur, ITC, Hindustan Unilever, P&G and Colgate struggled to reach double-digit growth even.

“With around 500 products many of them in FMCG category the Company has significantly increased its market share. Many of its product launches have impacted share of other FMCG companies in that product category. Some of its flagship brands which have wrested the market share of its competitors include Dant Kranti, Atta noodles and Kesh Kranti”, the paper said.

Patanjali Ayurveda Limited is owned by Acharya Balakrishna with 94% stake in it. Patanjali products are available in 15000 exclusive retail outlets,  3,000 Patanjali chikitsalaya kendras, Big bazar and Reliance fresh etc. 

“Like in several other areas the Indian FMCG is also witnessing its disruptive moments. Interestingly the big disruption has come about from unconventional ownership. Yet another interesting aspect is that unlike a few years ago the focus has shifted away from the foreign direct investment in multi brand retail to home grown Ayurveda. This also reflects a kind of latent desire among the Indian consumers to adopt the products which are safe, healthy and free from side-effects”, said ASSOCHAM Secretary General Mr. D.S. Rawat.

Observations made by  ASSOCHAM– TechSci Study

  • 91% of the retail market is unorganized. In contrast, in the US, 86% of the same is organized
  • Digital penetration, GST (Goods and Service tax) roll out and better supply chain would increase the organized share of the retail market.
  • India is emerging as the strong regional export hub for the domestic and multinational FMCG players
  • With increasing income, people in urban areas are tending to prefer premium products.
  • E-Commerce is the key driver in the FMCG market. Players like Grofers, Flipkart and Amazon are making products readily available to the consumers.


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