Personal Care and Wellness Products: A Transformative Opportunity for India’s MSMEs

By Simarpreet Kaur --
Friday, 24 Oct, 2025

Converting India’s Traditional Strengths into a Modern Economic Engine

India’s personal care and wellness industry is one of the most dynamic and fast-growing segments of the economy, blending traditional knowledge with modern consumer trends. Rooted in Ayurveda, herbal formulations, and natural therapies, this sector has evolved into a major source of entrepreneurship and employment. Rising consumer awareness about preventive healthcare, self-care, and holistic well-being is driving consistent growth both domestically and globally. Industry projections estimate that the market could surpass USD 30 billion in the coming years. For India’s micro, small, and medium enterprises (MSMEs), this momentum represents a strategic opportunity, not just to tap a lucrative market but to formalise, innovate, and align with the national vision of sustainable development outlined by the Ministry of MSME (MoMSME).

Identifying Market Opportunities and Aligning with Policy Priorities

MSMEs entering this sector should begin by identifying viable product categories aligned with market trends and available resources. The Development Commissioner (MSME) (dcmsme.gov.in ) offers valuable insights on industry clusters, market potential, and value-chain linkages. Entrepreneurs can explore segments such as herbal skincare, organic cosmetics, ayurvedic nutraceuticals, or wellness accessories. Aligning enterprise goals with consumer preferences, especially for sustainability, authenticity, and quality ensures both commercial viability and policy relevance.

Formalisation and Compliance: The Foundation for Growth

Formalisation is essential for scaling. MSMEs should register on the Udyam Registration Portal (udyamregistration.gov.in ) to access government incentives, finance, and capacity-building programmes. Registration also enables participation in flagship initiatives such as the Raising and Accelerating MSME Performance (RAMP)scheme, which supports competitiveness and market readiness. Manufacturers in the wellness or ayurvedic domain must also comply with standards set by the Ministry of AYUSH (ayush.gov.in ). Obtaining AYUSH licenses, ensuring proper product testing, and following packaging and labeling norms not only build consumer trust but also qualify enterprises for trade fairs and export promotion programmes.

Building Capacity and Ensuring Quality

Sustained success in wellness manufacturing depends on maintaining high-quality, consistent, and environmentally responsible production. MSMEs can enhance their capacities through the Micro and Small Enterprises Cluster Development Programme (MSE-CDP), which helps establish common facility centres for processing, testing, and packaging. The Zero Defect Zero Effect (ZED) Certification Scheme (zed.msme.gov.in ) further supports MSMEs in adopting sustainable manufacturing practices reducing waste, improving energy efficiency, and boosting brand credibility. ZED-certified enterprises can also access new green markets and financing options.

Strengthening Brand Presence through Digital Integration

In today’s competitive marketplace, digital visibility and branding are vital. The Digital MSME Scheme (dcmsme.gov.in ) assists small businesses in adopting ICT tools for marketing, e-commerce, and enterprise management. By developing a strong brand identity, storytelling, and online presence, wellness MSMEs can reach consumers directly via e-commerce platforms and social media. Additionally, the Entrepreneurship and Skill Development Programme (ESDP) provides training in packaging, design, and digital marketing, helping businesses compete more effectively. Participation in government-supported trade fairs and buyer-seller meets further enhances brand exposure and networking opportunities.

Innovation, Export Readiness, and Sustainability

Once an enterprise secures its domestic base, innovation and export readiness become the next frontier. The Ministry of AYUSH supports R&D in herbal and ayurvedic formulations, guiding MSMEs on Good Manufacturing Practices (GMP) and international certifications. Collaborations with AYUSH clusters and research bodies can help develop scientifically validated, globally competitive products. India’s focus on sustainability, as reflected in MoMSME’s vision, encourages MSMEs to adopt eco-friendly packaging, renewable energy use, and circular production systems. These practices meet rising environmental standards while boosting export appeal in global wellness markets.

The Road Ahead

India’s personal care and wellness sector represents the fusion of heritage, innovation, and entrepreneurship. For MSMEs, the journey begins with identifying a niche, formalising operations, ensuring compliance, building production capacity, and integrating technology and sustainability. With supportive government policies and schemes promoting finance, innovation, and market access, India’s MSMEs are poised to transform age-old wellness traditions into globally recognised brands. By harnessing this opportunity, they can play a key role in achieving the vision of Atmanirbhar Bharat, a self-reliant, inclusive, and wellness-driven economy.

Personal Care and Wellness Products: A Transformative Opportunity for India’s MSMEs. <h2>Converting India’s Traditional Strengths into a Modern Economic Engine</h2>

India’s personal care and wellness industry is one of the most dynamic and fast-growing segments of the economy, blending traditional knowledge with modern consumer trends. Rooted in Ayurveda, herbal formulations, and natural therapies, this sector has evolved into a major source of entrepreneurship and employment. Rising consumer awareness about preventive healthcare, self-care, and holistic well-being is driving consistent growth both domestically and globally. Industry projections estimate that the market could surpass USD 30 billion in the coming years. For India’s micro, small, and medium enterprises (MSMEs), this momentum represents a strategic opportunity, not just to tap a lucrative market but to formalise, innovate, and align with the national vision of sustainable development outlined by the Ministry of MSME (MoMSME).

<h2>Identifying Market Opportunities and Aligning with Policy Priorities</h2>

MSMEs entering this sector should begin by identifying viable product categories aligned with market trends and available resources. The Development Commissioner (MSME) (<a href="http://dcmsme.gov.in/">dcmsme.gov.in</a> ) offers valuable insights on industry clusters, market potential, and value-chain linkages. Entrepreneurs can explore segments such as herbal skincare, organic cosmetics, ayurvedic nutraceuticals, or wellness accessories. Aligning enterprise goals with consumer preferences, especially for sustainability, authenticity, and quality ensures both commercial viability and policy relevance.

<h2>Formalisation and Compliance: The Foundation for Growth</h2>

Formalisation is essential for scaling. MSMEs should register on the Udyam Registration Portal (<a href="http://udyamregistration.gov.in/">udyamregistration.gov.in</a> ) to access government incentives, finance, and capacity-building programmes. Registration also enables participation in flagship initiatives such as the Raising and Accelerating MSME Performance (RAMP)scheme, which supports competitiveness and market readiness. Manufacturers in the wellness or ayurvedic domain must also comply with standards set by the Ministry of AYUSH (<a href="http://ayush.gov.in/">ayush.gov.in</a> ). Obtaining AYUSH licenses, ensuring proper product testing, and following packaging and labeling norms not only build consumer trust but also qualify enterprises for trade fairs and export promotion programmes.

<h2>Building Capacity and Ensuring Quality</h2>

Sustained success in wellness manufacturing depends on maintaining high-quality, consistent, and environmentally responsible production. MSMEs can enhance their capacities through the Micro and Small Enterprises Cluster Development Programme (MSE-CDP), which helps establish common facility centres for processing, testing, and packaging. The Zero Defect Zero Effect (ZED) Certification Scheme (<a href="http://zed.msme.gov.in/">zed.msme.gov.in</a> ) further supports MSMEs in adopting sustainable manufacturing practices reducing waste, improving energy efficiency, and boosting brand credibility. ZED-certified enterprises can also access new green markets and financing options.

<h2>Strengthening Brand Presence through Digital Integration</h2>

In today’s competitive marketplace, digital visibility and branding are vital. The Digital MSME Scheme (<a href="http://dcmsme.gov.in/">dcmsme.gov.in</a> ) assists small businesses in adopting ICT tools for marketing, e-commerce, and enterprise management. By developing a strong brand identity, storytelling, and online presence, wellness MSMEs can reach consumers directly via e-commerce platforms and social media. Additionally, the Entrepreneurship and Skill Development Programme (ESDP) provides training in packaging, design, and digital marketing, helping businesses compete more effectively. Participation in government-supported trade fairs and buyer-seller meets further enhances brand exposure and networking opportunities.

<h2>Innovation, Export Readiness, and Sustainability</h2>

Once an enterprise secures its domestic base, innovation and export readiness become the next frontier. The Ministry of AYUSH supports R&D in herbal and ayurvedic formulations, guiding MSMEs on Good Manufacturing Practices (GMP) and international certifications. Collaborations with AYUSH clusters and research bodies can help develop scientifically validated, globally competitive products. India’s focus on sustainability, as reflected in MoMSME’s vision, encourages MSMEs to adopt eco-friendly packaging, renewable energy use, and circular production systems. These practices meet rising environmental standards while boosting export appeal in global wellness markets.

<h2>The Road Ahead</h2>

India’s personal care and wellness sector represents the fusion of heritage, innovation, and entrepreneurship. For MSMEs, the journey begins with identifying a niche, formalising operations, ensuring compliance, building production capacity, and integrating technology and sustainability. With supportive government policies and schemes promoting finance, innovation, and market access, India’s MSMEs are poised to transform age-old wellness traditions into globally recognised brands. By harnessing this opportunity, they can play a key role in achieving the vision of Atmanirbhar Bharat, a self-reliant, inclusive, and wellness-driven economy.