The Indian herbal industry is likely to double from present Rs. 7,500 crore to Rs. 15,000 crore by  2015, according to a new study published on Friday.

The study, brought out by the Associated Chambers of Commerce and Industry (ASSOCHAM), has viewed that the domestic herbal industry  will grow rapidly in the coming years and by 2015, it is expected that the size of the domestic market will rise to Rs. 15,000 crore, reflecting a compound growth rate of over 20  percent.  

Releasing the study, ASSOCHAM Secretary General, D.S.Rawat said that ideally, the niche market that India can focus on include Ayurvedic Medicines and Dietary Supplements (including health drinks),  extracts, Oils and other derivatives , skin care and beauty aids.

According to the study, the Indian domestic market can be broadly segmented into two categories. The first one will cover raw materials required by the industrial units and direct consumption for household remedies, whereas the second category will cover ready to use finished medicines, health supplements, etc.

The study has found that there is a strong demand for raw stock which mainly comprises Amla, Isabgol, Senna, Henna, Ashwagandha, Aloe-vera and Myrobalans (Hartaki), which accounts for over 75 % of the raw materials used in Ayurvedic preparations. In terms of volume, it is estimated that current consumption of the key raw ingredients (as mentioned above) totals approximately 400,000 – 500,000 MT.

With value addition, the market for herbal based products is around Rs. 7,500 crores, which is roughly the current size of the Indian market, it is stated.

The study points out that globally the dependence on herbal medicines, dietary supplements and skin and beauty aids will continue to gain greater share in view of the awareness and comfort level which is akin to the use of organic food products.

The ASSOCHAM study, however, is of the view out that India's share in the global hebal market is very meager considering the country's rich resource of medicinal plants and traditional treasure of knowledge in this area.    

A quick estimate of the potential reveals that India can generate raw stock of around Rs. 300 billion and easily achieve around Rs.150 billion value added products. Thus, India is hardly able to exploit less than 50% of its potential, the study adds.

The study has recommended that India's thrust in the export market needs to be focused to achieve the targeted growth and market share.  

"While the ethnic Indian population outside India is utilizing Indian herbal products in a significant way, there is a compelling need to generate awareness among the locals in foreign countries with regard to Indian products, besides meeting the quality standards in the advanced countries," the study has pointed out.