India’s century-old wellness brands are being forced into a rethink. As direct-to-consumer (D2C) startups reshape how young Indians discover and consume supplements, traditional ayurvedic and Unani players—from Dabur to Hamdard—are racing to shed their syrup-heavy, medicinal image and speak the language of Gen Z.
The shift goes beyond packaging. At stake is who defines wellness for India’s next generation—legacy companies built on trust and scale, or digital-first brands selling science-backed outcomes, clean labels and lifestyle-led consumption. The answer could reshape one of India’s fastest-evolving FMCG categories.
The stakes are high. India’s health and wellness market was valued at about $40 billion in 2024, according to a report by consulting firm Kearney. Nutraceuticals—including supplements, functional foods and beverages—accounted for roughly $8 billion of this, and are among the fastest-growing segments, expanding at an 11% compound annual growth rate between 2023 and 2027, the report said.
Experts say the pressure on legacy wellness brands has been building for years, driven by portfolios that skew older and regionally concentrated.
Traditional companies have seen tepid growth over the last three to four years because their product portfolio is geared towards an older generation—and in the case of companies like Dabur and Hamdard, towards a North and Central Indian consumer base, said Kiran Mahasuar, assistant professor of strategy at SPJIMR, Mumbai.
Dabur’s largest brands—each clocking over ₹500 crore in revenue and forming the backbone of its sales—such as Dabur Red Paste, Dabur Amla hair oil, Dabur Honey and Chyawanprash, are widely perceived as “boomer brands,” Mahasuar said.
“Gen Z is very particular about ingredients, and look and feel—and most importantly they want visible results,” he told Mint. “Companies in skin care and hair care have been struggling over the last three to four years. Earlier, rural demand was sustaining them, but you can’t grow on that alone if your other segments are flat or degrowing.”
Format shift
Leading legacy players say wellness is no longer episodic or age-linked, forcing changes in both product design and positioning.
"It is an everyday behaviour. Consumers want science-backed efficacy rooted in tradition, but in formats and language that suit modern lifestyles,” said Durga Prasad, ethics and marketing head at Dabur India Ltd.
Chyawanprash, long associated with thick, sugar-laden tonics, is now available in tablet form. Dabur’s newer launches are also increasingly sugar-free or low-sugar. “Clean-label and no-added-sugar claims are no longer premium, they are baseline expectations,” Prasad said.
The challenge, executives say, is not just format but translation.
Ayurvedic concepts are often unfamiliar or abstract for Gen Z consumers, requiring reinterpretation rather than dilution. Dabur has responded by reframing classical ideas into outcome-led language—immunity, gut health and stress relief—while retaining traditional formulations.
“Our role is to stay true to classical principles while expressing their benefits in everyday terms,” Prasad said. “These are not new ideas; they are modern expressions of the same Ayurvedic intent.”
Unani rethink
Hamdard Laboratories Ltd, a 120-year-old Unani medicines company, is undergoing a similar transition; but cautiously.
Its portfolio remains heavily skewed towards syrups, formats increasingly at odds with Gen Z’s aversion to sugar and strong medicinal tastes.
“Gen Z is extremely conscious about what goes into their body,” said Abdul Majeed, chairman & trustee at Hamdard Laboratories. “Sugar, taste and convenience matter far more today than they did even a decade ago.”
In response, Hamdard has begun introducing sugar-free tablet and capsule versions of select products, including Safi, a blood-purification tonic. “We can’t abandon the people who have trusted us for decades,” Majeed said. “So the shift has to be gradual.”
Communication, executives say, remains the bigger hurdle.
Concepts such as blood purification—central to Unani medicine—carry little resonance for younger consumers raised on the vocabulary of detox, metabolism and inflammation.
“If I explain it in traditional terms, it takes too long,” Majeed said. “You have to speak their language.”
Growth contrast
The urgency is underscored by diverging growth trajectories.
Dabur’s healthcare segment has shown steady performance over the past three quarters, contributing a significant share to its domestic FMCG portfolio. In Q4 FY25, healthcare revenue stood at ₹536 crore, or 30% of domestic sales. This rose to ₹591 crore in Q1 FY26 (up 2.7% year-on-year) and further to ₹603 crore in Q2 FY26, a 1.3% increase. The segment is Dabur’s second-largest domestic FMCG contributor.
By contrast, digital-native wellness brands have scaled rapidly. Wellbeing Nutrition’s revenue rose from ₹2 crore in FY20 to ₹72 crore in FY24, while Kapiva expanded from ₹42 crore in FY21 to ₹349 crore in FY25.
Startup playbook
That shift has been driven—and monetized—by D2C brands built around online discovery, influencer-led education and quick-commerce distribution.
Bengaluru-based Kapiva raised over $60 million in a Series D round led by 360 ONE Asset and Vertex Growth in September. Hindustan Unilever Ltd acquired Oziva for ₹264 crore in 2022, and also picked up a 19.8% stake in Wellbeing Nutrition for ₹70 crore.
“People today don’t want to structure their lives around supplements,” said Ameve Sharma, founder of Kapiva. “They want solutions that fit naturally into their routine and feel culturally relevant.”
Trust vs belief
For D2C founders, the edge lies in behaviour-first design.
“Legacy brands were built for distribution reach,” said Avnish Chhabria, founder of Wellbeing Nutrition. “Digital brands were built for belief and adherence.”
He argued that some legacy moves amount to catch-up rather than reinvention. “Changing a syrup into a tablet without rethinking formulation or absorption is cosmetic,” Chhabria said. “Real innovation is science-led and outcome-driven.”
Legacy players counter that trust, scale and regulatory rigour still matter—especially as scrutiny of supplements intensifies. Dabur points to its R&D depth, clinical validation and supply-chain control as durable advantages.
“The wellness market is not a zero-sum game between legacy and startups,” Prasad said. “It’s a convergence of strengths.”