Dabur notes consumer preference for ayurveda, herbal products

And, that the young increasingly prefer to browse and shop online, which 'needs to be factored into our plans and strategies'

Dabur, the fast moving consumer goods entity, is reviewing the competition in the branded ayurvedic and natural products space.

It says it has identified a growing trend among consumers in preferring ayurvedic, herbal and natural products. And, is "planning to enhance its range of health care products based on ayurvedic, herbal solutions", says Anand C Burman, chairman, Dabur India, in the company's annual report.

He says the emerging preference is due to a 'back to roots' trend, "among people from all demographics and income strata". This is one recent trend "in the consumer sector which is likely to have a significant impact on consumer behaviour and consumption".

Dabur has partnered with the Central Council of Research in Ayurvedic Sciences (CCRAS), under the Union ministry of AYUSH. In 2015-16, it signed a licensing agreement with CCRAS to commercially produce two ayurvedic drugs.

Abneesh Roy, senior vice-president at Edelweiss Securities, says Dabur has long been trying to marry ayurvedic heritage to modern scientific expertise. During the year, it launched 44 products in the category and conducted 14 trials.

Apart from ayurvedic products, Burman emphasised on the surging tide of e-commerce and online presence of FMCG brands. "Younger consumers are becoming more and more digitally influenced and inclined towards browsing and shopping online. This is one of the biggest changes and it needs to be factored into our plans and strategies for being future-ready."

It has set up several portals, including one on health care, liveveda.com. The aim is to engage with digitally active consumers who seek information and advice on common health care problems. Dabur intends to partner e-commerce players in the country, apart from promoting its own portals.

According to a joint report by the Confederation of Indian Industry (CII) and The Boston Consulting Group, the FMCG sector in India is Rs 436,000 crore and expected to grow to Rs 16,00,000 crore by 2025, growing at 14 per cent annually. The ayurvedic products market is said to be growing nearly five per cent higher than the sectoral growth rate.