Why Ayurvedic D2C Growth Isn’t Translating into Profits

Ayurvedic D2C is growing fast, and burning faster. Brands like Kapiva and Nat Habit are clocking strong topline growth, but profits remain elusive.

Don’t believe? Look at the numbers.

Kapiva, which sells ayurvedic nutrition and wellness products, reported an operating revenue of Rs 342 crore in FY25, up 50% from the previous year. Now, if you think this high-octane growth would have had a rub-off on the bottom line, then here’s the spoiler: Losses have increased to Rs 69 crore in FY25 as against Rs 56 crore in the last fiscal, according to Entrackr.

Ditto for Nat Habit. The personal care brand, which recently rebranded itself as Breathe Life, reported operating revenue of Rs 106 crore in FY25, up 47% year on year. However, its net loss rose sharply to Rs 29 crore from Rs 18 crore a year earlier.

So, does this mean that the market opportunity is restricted? No. The headroom for growth—in India and abroad—is massive. The global ayurveda market size was pegged at $20.42 billion in 2025 and is expected to reach $85.83 billion by 2033, growing at a CAGR of 19.72% between 2026 and 2033, according to market research platform Grand View Research.

Marketing and branding experts explain what is driving this boom. “One of the primary reasons is the increased awareness among youth for health and wellness-related issues,” reckons Ashita Agarwal, professor of marketing at SP Jain Institute of Management and Research. Millennials and Gen Z, she underlines, are moving back to basics and seeking preventive health care options.

But if the market is growing, this brings us to the next question: why are D2C Ayurvedic players still in red?

No-brainer, it’s the usual suspects.

Skyrocketing ad spends, relentless competition and broken unit economics have turned scale into a cash sink, making every growth spurt more expensive, and putting long-term sustainability under lens. Rising input costs, higher employee expenses, logistics and continued reliance on paid marketing have limited the benefits of scale.

The pressure on margins is closely linked to the competitive environment both brands operate in.

Take, for instance, Nat Habit. It competes in the crowded natural personal care segment alongside brands such as Mamaearth, Plum, WOW Skin Science, Biotique and Lotus Herbals. “There are legacy brands like Dabur and Himalaya that have traditionally occupied this place,” says Agarwal. Hence, for newer D2C brands, it is not easy to build a place for themselves and establish trust. This can be possible only when people are aware of these brands and their differentiation. “This requires high investment in advertising and marketing,” she adds.

Kapiva too operates in a cluttered space. The ayurvedic wellness and nutrition segment--where competition comes from both established players such as Dabur, Himalaya Wellness and Patanjali, and newer digital-first brands—are targeting specific health concerns. This fragmented landscape has made sustained marketing spends critical for visibility and recall. “It’s not easy for D2C brands to build a place for themselves and establish trust. This can be possible only when people are aware of these brands and their differentiation,” underlines Agarwal.

Together, Kapiva and Nat Habit reflect a broader shift underway in India’s ayurvedic D2C market. The early phase of ad-led growth is giving way to tougher questions on unit economics. For brands in this space, the real test now is not how fast they can grow, but whether they can do so without continuing to burn cash.