openPR Logo
Press release

Indian wellness services market to grow at 30-35% CAGR, says FICCI-Ernst & Young Report

04-20-2009 07:28 PM CET | Advertising, Media Consulting, Marketing Research

Press release from: Ernst & Young India

Mumbai, April 15, 2009- Notwithstanding the current economic slowdown which has impacted several sectors, the Indian wellness services market is expected to remain buoyant and has the potential to sustain a compounded annual growth rate (CAGR) of approximately 30-35% for the next five years, says a latest study by FICCI and professional services firm, Ernst & Young. The wellness services market is currently estimated at Rs 11,000 crore.

The FICCI-EY report, titled Wellness- Exploring the untapped potential, highlights that the growth is expected on the back of favorable market demographics, consumerism, globalization, changing lifestyles, increasing availability across categories and regions and rising awareness among people.

Says Farokh Balsara, Partner, Advisory Services, Ernst & Young “Given the favourable demand and supply dynamics, wellness presents strong business potential. With this report, we have sought to present a comprehensive picture of the complete wellness economy, comprising users, service providers and the facilitators, the challenges faced by each one and the way forward for each of these stakeholders, to successfully ride this wave.”

The Report has classified the wellness industry into seven core segments within different products & services, such as Allopathy, Alternative therapies, Beauty, Counseling, Fitness/slimming, Nutrition and Rejuvenation. Of these, rejuvenation services such as spas, alternative therapies, ayurveda treatments and beauty services are expected to show growth rates as high as 30%. At the same time, fitness comprising gyms and slimming centers are expected to grow by more than 25%. Nutrition products, including dietary supplements, health food and drinks have shown a growth rate of 8-10%, whereas allopathy as a segment was not classified due to its traditional linkage to healthcare.

According to the report, the increasing level of activity is arising from the entry of several providers such as organized Indian and international players; expansion by existing companies to new product categories and regions; strategic alliances across the value chain, interest by private equity investors and also players in allied industries like hotels and real estate entering the wellness segments. The report also points to a trend of players moving towards offering a ‘one-stop-solution’ for all Wellness based needs by adding more products and services across various segments in wellness.

In terms of payback and gestation periods, products such as health foods & drinks, dietary supplements and alternative medicines require greater investments, normally exceeding Rs25 crore or more, says the report, with paybacks ranging from 3-6 years. At the same time, services such as ayurveda treatment, alternative treatment centers, salons etc require much lower investment and also have lower paybacks of upto three years.

When it comes to regions, the south is much ahead in terms of indicative concentration for the organized wellness-based centres per household (34.4 centres per lakh households), as compared to 13.6 for the north, 12 for west and 10.1 in the east. The report attributes south’s lead to the presence of more alternative therapies based centres. There are also clear customer preferences in each region with regard to each segment. While alternate therapies are the most popular choice of people in southern India, customers in north are inclined towards beauty, while the maximum number of fitness/ slimming centres is in the west.

The report shows that across segments, on an average more than 50% of the market is unorganized and highly segmented with several small and regional players. While ayurveda and alternative treatments are predominantly unorganised; health foods and drinks and dietary supplements are more organised.The larger service providers face a challenge from the presence of the unorganized sector as it puts tremendous pressure on pricing and therefore margins.

Adds Mr. Balsara, “To create a sustainable model for the providers, there is a requirement of three key support pillars, which are media vehicles for generating awareness; skills-based education and training for human resources; and government support to stimulate the development of capacity, introduce quality standards and encourage customers to use accredited industry players..”

Other steps necessary to tap the potential include focus by the service providers to enhance assurance on quality of services provided, building collaborative distribution models to enhance depth and breadth of coverage and reach, a balanced product portfolio and deliver high standards in customer relationship and experience management.

At the government level, the report has called for better integration among different government entities; industry status for wellness so all the players can collectively work under one industry body; identify regions that are strong on wellness and integrate the state governments to take up collective efforts to make India a preferred wellness destination.

Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 130,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve potential. For more information, please visit

Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
This news release has been issued by EYGM Limited, a member of the global Ernst & Young organization that also does not provide any services to clients.

Ernst & Young Pvt. Ltd
Corporate Communications

This release was published on openPR.

Permanent link to this press release:

Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Indian wellness services market to grow at 30-35% CAGR, says FICCI-Ernst & Young Report here

News-ID: 76165 • Views: 5044

More Releases from Ernst & Young India

Small towns lead the league for marketers
Mumbai, 11 May, 2010: Ernst and Young today released the report, "The New Market Shehers: Tapping Potential Beyond the Metros" identifying the trends in consumption patterns and marketing spends in small town India. The report provides an insight on how non-metro urban markets are becoming more relevant in India's consumption story and how marketers are restructuring their budgets to take advantage of the new urban consumer. The New Market Shehers:
Indian passenger vehicle market expected to be 3.75 million by 2014, Ernst & You …
NEW DELHI, 29 June: The Indian passenger vehicle market is expected to grow at a compounded annual growth rate of 12% over the next five years, reaching 3.75 million units in 2014 from current sales of 1.89 million units in FY09, reveals a latest analysis by professional services firm Ernst & Young. While exports are expected to contribute with volumes of 1 million units, the balance of 2.75 million
India Inc optimistic about growth; Ernst & Young Survey
• At least 10% growth in businesses expected for FY10 by 46% respondents • Three-fourth respondents report only a low to medium impact of downturn • Cost reduction, hiring freeze, commodity and forex risk management dominate corporate agendas • Term loans from banks, debt/equity from group companies emerge as preferred means of raising capital • Majority expect consolidation, 47% believe assets are undervalued Mumbai/ New Delhi, 5 May, 2009 : – As the recent fourth quarter

All 4 Releases

More Releases for Limited

Cold Chain Market in India 2020 | Snowman Logistics Limited, Coldstar Logistics …
Request Free sample on this latest research report @ Key Players: Snowman Logistics Limited, Coldstar Logistics Private Limited, Gati Kausar India Limited, Gubba Cold Storage Private Limited, Kool-ex Cold Chain Limited, Seabird Logisolutions Limited, DHL Logistics Private Limited, Kuehne + Nagel Private Limited Cold chains provide storage and distribution services for products that are temperature-sensitive. Depending on the nature and purpose of storage application, cold chains have been categorized as frozen
Power Sector in India 2021 | Adani Power Limited, CESC Limited, Damodar Valley C …
Request a FREE sample on this latest research report @ Companies covered: Adani Power Limited, CESC Limited, Damodar Valley Corporation (DVC), NHPC Limited, NTPC Limited, SJVN Limited, Suzlon Energy, Tata Power Limited, Websol Energy System Limited, Nuclear Power Corporation of India Limited (NPCIL) The Indian power sector has undergone a significant transformation in terms of power supply, energy demand, fuel mix, and market operations. India appeared to be the third-largest power
Financial Brokerage Market in India 2021 | Angel Broking Limited, Geojit Financi …
Request a sample on this latest research report @ The brokerage market was valued at INR 135.0 Bn in FY 2016. In FY 2020, it reached INR 210 Bn from INR 195 Bn in FY 2019, expanding at an annual growth rate ~7.69%. Key Players: Angel Broking Limited, Geojit Financial Services Limited, ICICI Securities Limited, IIFL Finance Limited, Kotak Securities Limited, Motilal Oswal Financial Services Limited, Reliance Capital Limited, SMC Global
Gin Market major keyplayers Tilaknagar Industries Limited, United Spirits Limite …
Future Market Insights (FMI) has published a new report, which is titled, “Gin Market: Driven By Changing Lifestyle and Expanding Urban Population - India Industry Analysis and Opportunity Assessment, 2015 – 2025.” The Indian gin market is witnessing a steady rise on account of the growing urban population and changing demographics. The change in outlook of the Indian society towards social consumption of alcohol is driving the growth of the
Auto Ancillary Market In India And Top Key Players Are Amtek Auto Limited, Bhara …
The auto ancillary industry is the other side of the automotive industry, which deals with the manufacturing and selling of intermediate parts, equipment and chemicals among others. The auto ancillary supply chain members are original equipment manufacturers (OEMs), tier I, tier II, tier III manufacturers and intermediaries. OEMs deal in high-value instruments and dominate the market, while the unorganized sector serves the aftermarket and deals in low-value products. Market segmentation The Indian
India footwear Market 2018-2025 Growth Analysis by Key Players, Khadim India Lim …
India footwear market Currently, India is the second largest footwear manufacturer in the world after China. The footwear market consists of companies engaged in manufacturing, selling and marketing of different kinds of footwear and accessories to the end users, namely men, women and kids. Footwear has evolved from being a necessity, as protection for feet, to an accessory which has become a style statement for customers. The Indian footwear market