Sunteți pe pagina 1din 31

Trends in aging and skin care: Ayurvedic

Hema Sharma Datta and Rangesh Paramesh

Author information Article notes Copyright and License information
This article has been cited by other articles in PMC.
Go to:
The association between Ayurveda, anti-aging and cosmeceuticals is gaining importance in the
beauty, health and wellness sector. Ayurvedic cosmeceuticals date back to the Indus Valley
Civilization. Modern research trends mainly revolve around principles of anti-aging activity
described in Ayurveda: Vayasthapana (age defying), Varnya (brighten skin-glow), Sandhaniya
(cell regeneration), Vranaropana (healing), Tvachya (nurturing), Shothahara (anti-
inflammatory), Tvachagnivardhani (strengthening skin metabolism) and Tvagrasayana
(retarding aging). Many rasayana plants such as Emblica officinalis (Amla) and Centella
asiatica (Gotukola) are extensively used.
Keywords: Ayurveda, anti-aging, cosmeceuticals, beauty, longevity, skin care
Go to:
The contemporary concept of wellness includes beauty, health, fitness and anti-aging treatments,
and is expected to become a US $1 trillion business by 2010. According to Euromonitor
International's recent Industry report, today's consumers clearly prioritize age-prevention above
any other category of cosmeceuticals. Hence the naturals and wellness segment basically targets
consumers in the 3555 age group for anti-aging cosmeceuticals, and even teens who want to
postpone the aging process.[1]
Cosmeceuticals are topical cosmeticpharmaceutical hybrids intended to enhance health and
beauty through ingredients that influence the skin's biological function.[2] The various topical
application products that delay and/or reverse visible signs of aging are termed anti-aging
cosmeceuticals. Research trends in anti-aging skin care products are moving towards developing
new plant extracts and botanical ingredients based on their traditional medicinal uses.[3]
Ayurveda is one of the most ancient medical traditions practiced in India, Sri Lanka and other
South Asian countries, and has a sound philosophical and experiential basis.[4] Atharvaveda,
Charak Samhita[5] and Sushruta Samhita are its main classics, giving detailed descriptions of
over 700 herbs. Ayurveda has several formulations for management of aging and related
conditions. Its literature describes over 200 herbs, minerals and fats to maintain and enhance the
health and beauty of the skin.[6] Today there is once again a revival of preference for natural
products, and in recent years there has been a great upsurge in the study of Indian herbs.[7]
Go to:
The origins of Ayurvedic Cosmeceuticals date back to the Indus Valley Civilization. The use of
cosmetics was not only directed towards developing an attractive external appearance, but
towards achieving longevity with good health (Sanskrit - Aayush and Aarogyam). There is
evidence of highly advanced concepts of self-beautification, and a large array of cosmetics used
by both men and women in ancient India. Many of these practices depended on the season
(Rutus) and were subtly interwoven with daily routine (Dinacharya). The whole range of
cosmetic usage and its practice as conceived by the ancient Indians was based on natural
resources.[8] Skin care procedures forming the daily routine described in Ayurvedic literature
consist of numerous formulae involving herbs and other natural ingredients. They were used as
external applications in the form of packs, oils, herbal waters, powders etc. Applications of these
as pastes have been classified into several kinds based on the temperature, duration and thickness
of application, effect of the application for healing, beautifying, anti-aging etc.[9,10]
Ayurvedic cosmeceuticals are very much prized for their safe, holistic action. Based on the vast
and established knowledge of Ayurveda, herbal extracts, fruit extracts and essential oils are now
being effectively used in medicines, food supplements and personal care. Ranges of Ayurvedic
cosmeceuticals are available for ageless skin, tonifying it, smoothing its imperfections, and
increasing its hydration level, thus restoring a radiant and healthy look. Such preparations
actively protect the skin and prevent premature aging.[11]
Go to:
Market and regulatory trends
Cosmeceuticals are not regulated as such in the European Union, United States or Japan. In the
EU, most are considered cosmetics; in the United States, most are seen as drugs, that have
probably not been approved by the U.S. Food and Drug Administration (FDA). In Japan, they
are regulated as quasi-drugs.[12] Today, new challenges are presented to government regulatory
agencies as new molecules from natural sources with true biological activity are being
discovered and tested. Traditional recipes of historical significance have become important
segments of the cosmeceutical market. Whereas there are clear guidelines for manufacturing and
advertising drugs as compared to cosmetics, the same is lacking for cosmeceuticals. Being
hybrids, cosmeceuticals are difficult to classify. The tightening of government regulations for
products claims and safety testing are on the horizon.[13] Natural and organic cosmeceuticals is
one of the fastest growing segments of the health and wellness market place. US Market
Research Data shows that sales of natural and organic personal care products totaled $7.9 billion
in 2008, and is expected to exceed $10 billion by 2010. The US is a less mature market than
Europe with lower penetration, and hence is expected to grow at the faster rate of 8.2% as
against 4.6% for Europe.
Standards for organics include the USDA National Organic Program (NOP), which enforces the
Organic Food Production Act (OFPA). Organic and Sustainable Industry Standards (OASIS)
allow both organic and made with organic in the global marketplace. Under OASIS, made
with organic starts at 70% minimum organic content, while organic requires 85%, but the
requirement will increase to 90% in 2010 and 95% in 2012. Europe has a number of organic
standards for harmonization, including French Ecocert, German BDIH (Bundesverband
deutscher Industrie-und Handelsuntrernehmen), U.K. Soil Association and the nonprofit NaTrue.
Its major certification bodies have banded together, consolidating their efforts via COSMOS,
which includes the UK, Germany, France, Italy and Belgium. For products designated as natural,
the Natural Products Association (NPA) recently brought out its Natural Personal Care Standard
to help ease consumer confusion in this market segment. NPA's new standard requires a
minimum of 95% of ingredients from natural sources.[1416]
Product and ingredient trends
Nutricosmetics - Nutricosmetics is the term often used for nutritional cosmetics and relates to
eat and drink products in co-ordination with usual skin care routine for better overall results.
Companies like Glowelle, Borba and Perricone have captured this trend with innovative
ingestibles promising cosmetic results. In the anti-aging market segment Beauty-from-Within
cosmeceuticals are becoming very popular. These orally ingested functional products promote
youthfulness by targeting and reversing specific physiological processes normally associated
with aging, such as the irreversible breakdown of cells and tissues. Many such nutricosmetics
contain vitamins, phytonutrients and other natural ingredients to achieve the desired results.
Anti-oxidants used in such nutricosmetics or oral anti-aging products include vitamins A, C and
E, fatty acids like alpha-lipoic acid, and botanicals such as green tea. Superior products also
include ingredients, which promote skin health, have anti-inflammatory action, and include an
anti-stress component. Between 2005 and 2007, the sharpest rise in new cosmeceutical food and
drink product launches was in Europe. In 2005, 14% of global cosmeceutical NPD originated in
Europe, and this rose to 23% in 2007.[13] Some common ingredients included in this category
are Echinacea, Green Tea, Garlic, Gingko Biloba, Aloe Vera and St. Johns Wort.[17]
Consumer trends
Changes in the Gender Divide: the market share of men's cosmeceutical products is starting to be
significant, but they have a long way to go before they rival those for women. A report published
by the Natural Marketing Institute (NMI) in 2007 showed that the fastest growing segment today
is the men's cosmeceutical range. The demand for looking good and maintaining youthful
healthy skin is no longer just for women. The first major wave of men's skin care products
appeared in the mid 1990s and has since grown steadily to a projected $6 billion in sales for
2008. Men are no longer embarrassed to shop for creams or admit their equal desire to look
young. Anti-aging skincare lines for men can be designed using cosmeceutical ingredients such
as vitamins, phytochemicals, acids, anti-oxidants and essential oils.[18] The youngest age group
being addressed for skin care are babies, with baby cosmeceutical products including sunscreens
and special actives.[13]
Price trends
Producing efficacious anti-aging cosmeceuticals requires a lot of science and research, which can
prove expensive. Hence many cosmeceuticals, like La Prairie's $200 anti-aging cream, are
situated at the premium end of the market. However, mega companies like P&G with products
like Olay Regenerist are now aiming to be more affordable for the everyday consumer in the
mass market. Further lower cost alternatives would have a large scope in the marketplace.[19]
Research trends
Anti-aging cosmeceutical concepts in Ayurveda
According to Ayurveda, a number of factors determine skin health and youthfulness. These
include proper moisture balance (Kapha in balance), effective functioning of the metabolic
mechanisms that coordinate all the various chemical and hormonal reactions of the skin (Pitta in
balance) and efficient circulation of blood and nutrients to the different layers of the skin (Vata
in balance). The health of the following three dhatus (types of body tissue) are especially
reflected in the skin: nutritional fluid (Rasa), blood (Rakta) and muscle (Mamsa). Rasa supports
all the body tissues, particularly keeping the skin healthy, Rakta, in association with liver
function, helps detoxify the skin of toxins, while Mamsa provides firmness to the skin. An
effective Ayurvedic anti-aging cosmeceutical should provide support to all these three areas.
Anti-aging treatment includes two types of therapies Urjaskara (promotive) and Vyadhihara
(curative). For vata skin to stay youthful, skin care products that can nourish and rehydrate the
skin should be used, otherwise it may be susceptible to wrinkles and premature aging. Warm oil
self-massage and all natural moisturizers may help. For pitta skin, good sunscreens for protection
from the sun, and good facial skin oils should be used daily. Tanning treatments and therapies
that expose delicate sensitive skin for extended periods of time to steam/heat should be avoided.
For kapha skin, a daily warm oil massage and cleansing of skin with gentle exfoliant should be
Anti-aging properties of Ayurvedic cosmeceutical ingredients[2124]
1. Age defying activity (Vayasthapana) The ingredient that nourishes the skin and ensures
its optimum physiological functions and has an overall anti-aging property is called
vayasthapana, which literally means maintaining youthfulness or arresting age.
Vayasthapana herbs give overall support to the skin by keeping all three doshas in
balance. Centella asiatica (Gotu-Kola) is the foremost vayasthapana herb with anti-aging
effects; one of its many properties is to enhance collagen synthesis.
2. Youthful Radiance (Varnya) An important group of herbs called Varnya, has the ability
to enhance the radiance or bright complexion of the skin. If the skin does not have a
healthy glow, or varnya quality, then it is not considered youthful in Ayurveda. Varnya
herbs include sandalwood, vetiver, Indian madder and Indian sarsaparilla and so on.
3. Protection from normal wear and tear (Sandhaniya) Sandhaniya herbs help coalesce
discontinued tissue, and in healing and regenerative functions of the skin, repairing
effects of aging. Sensitive Plant enhances healing and regeneration of the nerves by 30
to 40%.
4. Deep healing (Vranaropana) Vranaropana herbs enhance deeper healing abilities in the
skin. Vranaropana herbs include Gotu Kola and sensitive plant, and are known for their
ability to heal wounds.
5. Enhancing and nurturing (Tvachya) These herbs support moisture balance and provide
overall nourishment to the skin. Gotu Kola, Silk Cotton Tree, Costus and Rose Petal are
the most widely used. Grapefruit extract and natural sources of Vitamins A, C and E
nourish the skin and enhance the value of herbs. Feeding the skin properly is very
important to prevent it aging.
6. Anti-inflammatory (Shothahara) By protecting the skin against allergens, inflammatory
substances, chemicals and even stress, this group of herbs provide the anti-inflammatory
effect, essential to all anti-aging formulations. Many factors in the external environment
can cause inflammation or breakouts. Inflammation is considered a prime cause of aging;
an inflamed site forms a micro-scar that over time develops into a wrinkle or blemish.
Inflammatory mediators such as leukotrienes and prostaglandins, cytokines and growth
factors target skin texture, integrity and tone. Containing inflammation at its root is
therefore an effective anti-aging strategy.[25] And while one can protect every other part
of the skin by covering it with clothing, facial skin is always exposed. Rose petal, Silk
Cotton Tree and Aloe Vera are Shothahara herbs with appropriate anti-inflammatory
Gum resin exudates of Boswellia serrata have been used in the Ayurvedic system of
medicine in the management of several inflammatory conditions.
7. Strengthening the skin's metabolic mechanisms (Tvachagnivardhani) This means
literally to enhance the luster of the skin by enhancing the skin's metabolism. As one
ages, metabolism generally slows down; similarly skin metabolism also weakens. If
enzymes become imbalanced, metabolic toxins are created, ama. Ama in the skin clogs
the channels, leading to wrinkles, dryness and other signs of aging. Clogged channels
also create dullness and lack of youthful glow. Application of Centella asiatica enhances
enzyme principles; topically, it improves circulation early. Also, by removing ama and
deep impurities, it helps prevent varicose veins, cellulitis, aging skin, and weakened
immunity to allergens and skin diseases.
8. Maintaining skin health and retarding aging (Tvagrasayana) In Ayurveda the concept
of anti-aging is embodied in rasayana. Tvagrasayana means literally skin rasayana,
which refers to refined and powerful herbal formulae designed to prevent sickness and
aging of the skin.
Phyllanthus emblica (amalaki), a potent antioxidant, rich in Vitamin C, tannins and gallic
acid, is foremost amongst the anti-aging drugs (vayasthaprana) or best amongst the
rejuvenating herbs; it has properties like rasayana (adaptogenic), ajara (usefulness in
aging), ayushprada (prolongs cell life), sandhaniya (improves cell migration and cell
binding) and kantikara (improves complexion).[6] In 2008, Mintel picked up 46 haircare,
45 skincare, 8 colour cosmetics and 2 soap/bath launches containing amalaki.[26] Thus
we can see that use of amalaki is widespread in the cosmoceutical industry.
Go to:
The aging process is a challenging human experience common to everyone, and the desire to
look young prevails in the majority of us. The latest trends in beauty, health and wellness sectors
are giving rise to a new realm of possibilities by fusing anti-aging cosmeceuticals with traditional
Indian medicine Ayurveda. Ayurveda offers vast amounts of information on principles of anti-
aging activity, skin care and anti-aging herbs, helping in the exploration of possibilities of
developing new anti-aging cosmeceuticals with natural ingredients for topical applications. A
number of cosmetic companies have used Ayurvedic knowledge for developing anti-aging
cosmeceuticals. The future for beauty-from-within functional cosmetics that offer
multifunctional benefits in the area of anti-oxidant cellular protection and skin health with anti-
inflammatory and anti-stress properties is bright. Backed by sound science and substantiated
structure and function, they will have a big market in the anti-aging cosmeceutical sector. This
review may help cosmetic and personal care industry, marketers and modern scientists
understand various different trends of potential use to research on anti-aging cosmeceutical
approaches to delaying, defying, and preventing skin aging.
Go to:
Source of Support: Nil
Conflict of Interest: None declared.
Go to:
1. Falk J. The new age of antiaging. Global Cosmet Industry. 2009;177:5459.
2. Grace R. Cosmeceuticals: Functional food for the skin. Nat Foods Merchandiser. 2002;23:92
3. Roehl EL. Consumption. In: EU Market Survey 2000- Natural Ingredients for Cosmetics.
2000;2:136. Compiled for, CBI, center for promotion of imports from developing countries.
4. Patwardhan B, Vaidya AD, Chorghade M. Ayurveda and natural products drug discovery.
Curr Sci. 2004;86:78999.
5. Dash B, Sharama BK. Charak Samhita. 7th ed. Varanasi, India: Chaukhamba Sanskrit Series
Office; 2001.
6. Datta HS, Mitra SK, Patwardhan B. Wound healing activity of topical application forms based
on Ayurveda. Evid Based Complement Alternat Med. 2009 in press. [PMC free article]
7. Sharma L, Agarwal G, Kumar Medicinal plants for skin and hair care. Indian J Trad Know.
8. Patkar KB. Herbal Cosmetics in ancient India. Indian J Plast Surg Suppl. 2008;41:S134. [PMC
free article] [PubMed]
9. Klingman LH. Preventing, delaying and repairing photo edged skin. Cutis. 1988;41:419.
10. Ghersetich I, Brazzini B, Peris K, Cotellessa C, Manunta T, Lotti T. Pyruvic acid peels for
the treatment of photoaging. Dermatol Surg. 2004;30:326. [PubMed]
11. LaYouth - Ayurvedic Cosmeceuticals for ageless skin. [cited in 2009]. Available from: .
12. Steinberg DC. Cosmeceutical regulations: A global overview. Cosmetics and Toiletries. 2005
13. Abedon B. West, international trade show and conference. Las Vegas: 2009. Nov 11th-13th,
Consumers seeking nutricosmetics with multifunctional benefits; pp. 78.
14. Corley JW. In: Natural and Organics in Cosmetics: From R and D to the Marketplace. IL,
USA: Allured Publishing Corporation; 2007. Natural and Organic: The Emerging Revolution;
pp. 5566.
15. Matthews I. In: Natural and organics in cosmetics: From R and D to the Marketplace. IL,
USA: Allured Publishing Corporation; 2007. Naturals hit mainstream; pp. 1720.
16. Whittaker MH, Engimann E, Sambrook I. Eco-labels: Environmental marketing in the beauty
industry. Global Cosmet Industry. 2009;177:304.
17. Beyer AM. You can lead a woman to nutricosmetics and cosmeceuticals, but will she try
them? Global Cosmet Industry. 2008;176:256.
18. Alford B, Hoffman J. Skin care brand focuses on male luxury consumers. Global Cosmet
Industry. 2008;176:64.
19. Myer S. Inside the cosmeceutical market. [cited on 2009 Nov 20]. Available from:
market.aspx?pg=2 .
20. Datta HS, Mitra SK, Paramesh R, Patwardhan B. Theories and management of aging:
Modern and Ayurveda perspectives. Evid Based Complement Alternat Med. 2009 in press.
[PMC free article] [PubMed]
21. Newton KG. The biology of aging (JARA): An Ayurvedic approach. Bull Indian Inst Hist
Med. 2001;31:16179. [PubMed]
22. Manyam BV. Dementia in Ayurveda. J Altern Complement Med. 1999;5:818. [PubMed]
23. Tabassum IF, Naveen S. The quest for eternal youth. Amruth. 2004;8:402.
24. Valiathan MS. In: The legacy of Caraka. Vol. 2. Chennai: Orient Longman Pvt Ltd; 2003.
Procedures for rejuvenation and enhancing virility (rasayana and Vajikarana) pp. 628.
25. Prakash L, Majeed M. In: Natural and organics in cosmetics: From R and D to the
Marketplace. IL, USA: Allured Publishing Corporation; 2007. Navigating the challenges of
formulating with naturals; pp. 918.
26. Lewis N. Planet natural: New actives from around the world. Beauty innovations. In-
cosmetics 2009 - Marketing Trends Review. [cited on 2009 Nov 20]. Available from: .

Articles from Journal of Ayurveda and Integrative Medicine are provided here courtesy
of Medknow Publications

ePub (beta)
Printer Friendly
Related citations in PubMed
Scientific basis for the use of Indian ayurvedic medicinal plants in the treatment of
neurodegenerative disorders: ashwagandha.[Cent Nerv Syst Agents Med Chem. 2010]
Neuronutrient impact of Ayurvedic Rasayana therapy in brain aging.[Biogerontology.
Amla (Emblica officinalis Gaertn), a wonder berry in the treatment and prevention of
cancer.[Eur J Cancer Prev. 2011]
Effect of Emblica officinalis (fruit) against UVB-induced photo-aging in human skin
fibroblasts.[J Ethnopharmacol. 2010]
Theories and management of aging: modern and ayurveda perspectives.[Evid Based
Complement Alternat Med. 2011]
See reviews...See all...
Cited by other articles in PMC
In vitro techniques to assess the proficiency of skin care cosmetic
formulations[Pharmacognosy Reviews. 2013]
Adding life to years with Ayurveda[Journal of Ayurveda and Integrative Medicin...]
See all...
Taxonomy Tree
Recent Activity
ClearTurn OffTurn On
Trends in aging and skin care: Ayurvedic concepts
Your browsing activity is empty.
Activity recording is turned off.
Turn recording back on
See more...
Herbal cosmetics in ancient India.[Indian J Plast Surg. 2008]
Patkar KB
Indian J Plast Surg. 2008 Oct; 41(Suppl):S134-7.
Preventing, delaying, and repairing photoaged skin.[Cutis. 1988]
Kligman LH
Cutis. 1988 Jun; 41(6):419-20.
Pyruvic acid peels for the treatment of photoaging.[Dermatol Surg. 2004]
Ghersetich I, Brazzini B, Peris K, Cotellessa C, Manunta T, Lotti T
Dermatol Surg. 2004 Jan; 30(1):32-6; discussion 36.
Theories and management of aging: modern and ayurveda perspectives.[Evid Based
Complement Alternat Med. 2011]
Datta HS, Mitra SK, Paramesh R, Patwardhan B
Evid Based Complement Alternat Med. 2011; 2011():528527.
You are here: NCBI > Literature > PubMed Central (PMC)
Write to the Help Desk

EY Client Portal
About us
Our values
Our global approach
Our leaders
Global review
Entrepreneur Of The Year
Our people and culture
Diversity and inclusiveness
Our history
Our awards
Our alumni
Corporate responsibility
EY/Ethics hotline
PR contacts
PR activities
Analyst relations
Facts and figures
Connect with us
Email alerts
Mobile applications
Social media
Global (English)
Location selector
Top of Form
Remember my selection
Bottom of Form
Albania (English)
Algeria (French)
Angola (English)
Argentina (Spanish)
Armenia (English)
Aruba (English)
Australia (English)
Austria (German)
Azerbaijan (English)
Bahamas (English)
Bahrain (English)
Barbados (English)
Belarus (English)
Belgium (English)
Bermuda (English)
Bolivia (Spanish)
Bosnia-Herzegovina (English)
Botswana (English)
Brazil (Portuguese)
British Virgin Islands (English)
Brunei (English)
Bulgaria (English)
Cambodia (English)
Canada (English)
Canada (French)
Cayman Islands (English)
Central America (English)
Channel Islands (English)
Chile (English)
China (English)
China (Simplified Chinese)
Colombia (Spanish)
Congo (English)
Costa Rica (Spanish)
Croatia (English)
Curacao (English)
Cyprus (English)
Czech Republic (Czech)
Czech Republic (English)
Denmark (Danish)
Dominican Republic (Spanish)
Ecuador (Spanish)
Egypt (English)
El Salvador (Spanish)
Equatorial Guinea (English)
Estonia (English)
Ethiopia (English)
Fiji (English)
Finland (Finnish)
France (French)
Francophone Africa (English)
FYROM - Macedonia (English)
Gabon (English)
Georgia (English)
Germany (German)
Ghana (English)
Global (English)
Greece (English)
Guam (English)
Guatemala (Spanish)
Guernsey (English)
Guinea (English)
Honduras (Spanish)
Hong Kong (English)
Hong Kong (Simplified Chinese)
Hungary (English)
Hungary (Hungarian)
Iceland (English)
India (English)
Indonesia (English)
Iraq (English)
Ireland (English)
Isle of Man (English)
Israel (English)
Israel (Hebrew)
Italy (Italian)
Ivory Coast (English)
Jamaica (English)
Japan (English)
Jordan (English)
Kazakhstan (English)
Kazakhstan (Russian)
Kenya (English)
Korea (English)
Korea (Korean)
Kuwait (English)
Laos (English)
Latvia (English)
Lebanon (English)
Libya (English)
Lithuania (English)
Luxembourg (English)
Macau (English)
Macau (Simplified Chinese)
Madagascar (English)
Malawi (English)
Malaysia (English)
Maldives (English)
Malta (English)
Mauritius (English)
Mexico (Spanish)
Middle East and North Africa (English)
Moldova (English)
Mongolia (English)
Montenegro (English)
Morocco (English)
Mozambique (English)
Namibia (English)
Netherlands (English)
Netherlands (Dutch)
New Zealand (English)
Nicaragua (Spanish)
Nigeria (English)
Norway (Norwegian)
Oman (English)
Pakistan (English)
Palestinian Authority (English)
Panama (Spanish)
Papua New Guinea (English)
Paraguay (Spanish)
Peru (Spanish)
Philippines (English)
Poland (Polish)
Portugal (English)
Qatar (English)
Romania (English)
Russia (English)
Russia (Russian)
Rwanda (English)
Saint Lucia (English)
Saipan (English)
Saudi Arabia (English)
Senegal (English)
Serbia (English)
Seychelles (English)
Singapore (English)
Slovak Republic (English)
Slovak Republic (Slovak)
Slovenia (English)
South Africa (English)
South Sudan (English)
Spain (Spanish)
Sri Lanka (English)
Sweden (Swedish)
Switzerland (German)
Switzerland (English)
Switzerland (French)
Taiwan (English)
Taiwan (Traditional Chinese)
Tanzania (English)
Thailand (English)
Trinidad and Tobago (English)
Tunisia (English)
Turkey (English)
Turkey (Turkish)
Uganda (English)
Ukraine (English)
Ukraine (Ukrainian)
United Arab Emirates (English)
United Kingdom (English)
United States (English)
Uruguay (Spanish)
Uzbekistan (English)
Venezuela (Spanish)
Vietnam (English)
Zambia (English)
Zimbabwe (English)
Business environment
Driving growth
Governance and reporting

Audit Committee
Public policy
Managing finance
Managing risk
Operational effectiveness
Talent management
Capital and transactions
Consumer Products
Financial Services

Asset Management
Banking & Capital Markets
Government & Public Sector
Life Sciences
Media & Entertainment
Mining & Metals
Oil & Gas
Power & Utilities
Private Equity
Real Estate

About Advisory Services
Performance Improvement
Advisory for Financial Services

About Assurance Services
Accounting Compliance and Reporting
Climate Change and Sustainability Services
Financial Accounting Advisory Services
Financial Statement Audit
Fraud Investigation & Dispute Services

About Our Global Tax Services
Country Tax Advisory
Cross Border Tax Advisory
Global Trade
Global Compliance and Reporting
Human Capital
Personal Taxes
Tax Accounting
Tax Performance Advisory
Tax Policy and Controversy
Transaction Tax
Transfer Pricing and Tax Effective Supply Chain Management
VAT, GST and Other Sales Taxes
Strategic Growth Markets

How We Help
Initial Public Offering
Venture Capital
Family Business Services

About Transaction Advisory Services
Lead Advisory
Operational Transaction Services
Transaction Support
Transaction Tax
Valuation & Business Modelling
Specialty Services

Climate Change and Sustainability Services
China Overseas Investment Network
Family Business Services
French Business Network
Japan Business Services

The EY difference
Your role here
Your development
Life at EY
Joining EY

The EY difference
Your development
Life at EY
Joining EY

Top of Form
Search country_name

Bottom of Form

> Services
> Transactions
> Growth strategies investment intent tops capital agenda
Capital Confidence Barometer, October 2013
Growth strategies investment intent tops capital agenda

Capital Confidence Barometer Home
Economic outlook
Access to capital
Growth strategies
Mergers & acquisitions
Country reports
Sector reports
About this survey
The Global Capital Confidence Barometer gauges corporate confidence in the economic outlook, and
identifies boardroom trends and practices in the way companies manage their Capital Agenda EYs
framework for strategically managing capital.
It is a regular survey of senior executives from large companies around the world, conducted by the
Economist Intelligence Unit (EIU). Our panel comprises select global EY clients and contacts and regular
EIU contributors.
In September we surveyed a panel of over 1,600 executives in 72 countries; half were CEO, CFO and
other C-level executives.
Respondents represented more than 20 sectors including financial services, consumer products,
technology, life sciences, automotive, oil and gas, power and utilities, mining and metals, diversified
industrial oroducts, and construction.
Companies annual global revenues ranged from less than US$500m to greater than US$5b: <US$500m
(19%); US$500m US$999.9m (24%); US$1b US$4.9b (30%); and >US$5b (27%)
More than 900 companies would have qualified for the Fortune 1000 based on revenue.
Company ownership was publicly listed (65%), privately owned (20%), family owned (7%),
government/stateowned (5%), and PE/portfolio owned (3%).

Focus on growth is at two-year high
Over the next 12 months, growth is the primary focus for almost 60% of companies. Continued
operational efficiency and cost control measures have largely eliminated concerns about stability and
Q: Which statement best describes your organizations focus over the next 12 months?

Excess cash is used to pay down debt and fund growth
In the near term, 36% of companies will use excess cash to pay down debt, which is one of the
remaining ways to optimize their capital structure. And 48% of companies plan to use excess cash to
fund growth starting with lower-risk organic strategies. As companies find organic strategies no
longer sufficient to achieve desired growth rates, they may look to M&A.
Organic growth strategies will center on core products and existing markets
To address their need for growth, companies will initially focus on lower risk organic platforms: existing
products, channels and markets. This strategy allows them to pursue low risk growth while maintaining
financial discipline and governance objectives. As they exhaust those lower-risk organic options,
companies will pursue higher-risk organic strategies: new products, channels and geographies.
Growth is now a global imperative, as almost 60% of executives say they plan to accelerate their growth
strategies over the next 12 months.
Companies have weathered a prolonged period of uncertainty. During this time, they have strengthened
their balance sheets and largely optimized their capital structures.
Companies are now ready to capitalize on the improving global economy and credit markets to
implement their growth agendas. Growth strategies are shifting from organic to inorganic strategies.
Coupled with positive leading indicators, the greater focus on growth points to a return of increased
M&A activity deals, globally.
Q: Which statement best describes your organizations focus over the next 12 months?

Connect with us
Stay connected with us through social media, email alerts or webcasts. Or download our EY Insights app
for mobile devices.

Contact us
Pip McCrostie
Global Vice Chair
Transaction Advisory Services
Steven Krouskos
Deputy Global Vice Chair
Transaction Advisory Services

Download latest report

EY Capital Confidence Barometer October 2013 - April 2014


Watch Pip McCrostie, Global Vice Chair, Transaction advisory Services, discuss the latest findings on
CNBC's Squawk Box.

Cash remains king for deals in Gulf states
Mohammad Raza, Business Development Leader of MENA TAS, speaks about confidence among CFOs in
MENA, their appetite for M&A and the emerging domestic financing opportunities.

Capital Insights
Stay ahead of the trend with our Capital Insights mobile app.

Related content
Capital Confidence Barometer - April 2013

US Companies are focused on growth
Global executives resuscitate flat-lining M&A as more than a third look to do deals

Tehira Taylor
EY Global Media Relations
+44 (0)20 7980 0703
Global Code of Conduct
Site map
Our locations
Contact us

EY refers to the global organization, and may refer to one or more, of the 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.