Legacy Wellness Brands Battle D2C Startups for India's Gen Z

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AuthorVihaan Mehta|Published at:
Legacy Wellness Brands Battle D2C Startups for India's Gen Z
Overview

India's century-old wellness giants like Dabur and Hamdard are radically reinventing their brands and products to capture the Gen Z market. Facing stiff competition from agile direct-to-consumer startups, these legacy players are shedding their traditional image for modern, science-backed wellness narratives. This strategic pivot is crucial for survival in the rapidly evolving $40 billion Indian health and wellness sector.

The Gen Z Wellness Shift

India's established wellness companies face an existential challenge. Direct-to-consumer (D2C) startups are redefining how younger generations approach health supplements, forcing century-old brands like Dabur and Hamdard to adapt or risk obsolescence. The battle is on to define wellness for India's next demographic, pitting trusted scale against digital-first innovation focused on science, clean labels, and lifestyle integration.

Legacy Brands Modernize

Traditional players are undertaking a significant overhaul, moving beyond mere packaging changes. Dabur India Ltd. is launching sugar-free variants and new formats like tablets for products such as Chyawanprash, previously known as sugar-laden tonics. "Consumers want science-backed efficacy rooted in tradition, but in formats and language that suit modern lifestyles," stated Durga Prasad, ethics and marketing head at Dabur. The company reframes classical Ayurvedic concepts like immunity and gut health into outcome-led language appealing to younger audiences. Hamdard Laboratories Ltd., a 117-year-old Unani medicine company, is cautiously introducing sugar-free options and capsule formats for products like Safi, while ensuring a gradual transition to retain its loyal customer base.

The Startup Disruption

Digital-native brands like Wellbeing Nutrition and Kapiva have rapidly scaled, demonstrating agile product development and consumer engagement strategies. Kapiva, for instance, secured over $60 million in funding, while Hindustan Unilever acquired Oziva and took a stake in Wellbeing Nutrition. These D2C players leverage online discovery, influencer marketing, and quick commerce, focusing on convenience and visible results. "Digital brands were built for belief and adherence," noted Avnish Chhabria, founder of Wellbeing Nutrition, contrasting them with legacy brands built for distribution.

Market Dynamics

The urgency is driven by market performance. Dabur's healthcare segment showed steady growth, contributing ₹603 crore in Q2 FY26. In stark contrast, Wellbeing Nutrition's revenue surged from ₹2 crore in FY20 to ₹72 crore in FY24, and Kapiva expanded from ₹42 crore in FY21 to ₹349 crore in FY25. The Indian health and wellness market was valued at approximately $40 billion in 2024, with nutraceuticals, a rapidly growing segment, accounting for about $8 billion and expanding at an 11% CAGR. Legacy companies argue their R&D, clinical validation, and supply chain control offer durable advantages, suggesting a future convergence of strengths rather than a zero-sum game.

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