India's storied Ayurvedic and Unani heritage brands are embarking on a significant transformation. As a wave of direct-to-consumer (D2C) wellness startups captures the imagination and wallets of younger consumers, legacy players like Dabur and Hamdard are urgently reworking their sugar-heavy portfolios, traditional formats, and communication strategies to stay relevant.
The Gen Z Challenge: From Syrups to Science-Backed Solutions
The pressure on these traditional companies has been mounting for years. Their product portfolios have historically catered to an older demographic and, in cases like Dabur and Hamdard, were regionally concentrated in North and Central India. This led to tepid growth, even as the overall health and wellness market in India, valued at approximately $40 billion in 2024, continues to expand rapidly.
Kiran Mahasuar, assistant professor of strategy at SPJIMR, Mumbai, notes that flagship products like Dabur Red Paste, Dabur Amla hair oil, and Chyawanprash are often perceived as "boomer brands." "Gen Z is very particular about ingredients, and look and feel—and most importantly they want visible results," he explained. This shift in consumer preference has forced a fundamental rethink.
For Dabur, this means moving beyond episodic, age-linked wellness to an "everyday behaviour" model. "Consumers want science-backed efficacy rooted in tradition, but in formats and language that suit modern lifestyles," said Dr. Durga Prasad, ethics and marketing head at Dabur India Ltd. The iconic Chyawanprash is now available in tablet form, and new launches are increasingly sugar-free. Clean-label and no-added-sugar claims are now baseline expectations, not premium features.
Translating Tradition for the Digital Age
The challenge extends far beyond packaging. It involves translating ancient, often abstract Ayurvedic and Unani concepts into the modern vocabulary of wellness. Dabur is reframing classical ideas around immunity, gut health, and stress relief, while Hamdard is grappling with how to explain core Unani principles like "blood purification" to a generation that understands "detox" and "inflammation."
"If I explain it in traditional terms, it takes too long," admitted Abdul Majeed, Chairman & Trustee at the 117-year-old Hamdard Laboratories. "You have to speak their language." Hamdard, whose portfolio remains syrup-heavy, is cautiously introducing sugar-free tablet versions of products like Safi, balancing innovation with the trust of its longstanding customer base.
Startup Speed vs. Legacy Trust
The urgency for legacy brands is highlighted by the contrasting growth trajectories. While Dabur's healthcare segment showed steady performance—contributing ₹603 crore in Q2 FY26—digital-native brands have scaled at a blistering pace. Wellbeing Nutrition grew from ₹2 crore in FY20 to ₹72 crore in FY24, and Kapiva expanded from ₹42 crore in FY21 to ₹349 crore in FY25.
These D2C startups, built on online discovery, influencer marketing, and quick-commerce, have rewritten the playbook. "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." Avnish Chhabria, founder of Wellbeing Nutrition, argues that legacy brands were built for distribution, while digital brands were built for belief and adherence.
However, legacy players counter that their deep R&D, clinical validation, and supply-chain control offer durable advantages, especially as regulatory scrutiny of supplements increases. "The wellness market is not a zero-sum game between legacy and startups," concluded Dabur's Durga Prasad. "It's a convergence of strengths." The battle to define wellness for India's next generation is now fully joined, promising to reshape one of the country's most dynamic consumer categories.
