Aveda was founded in 1978 by Horst Rechelbacher, a hairstylist. The vision was to bring to beauty professionals botanical products that would be good for them, their guests, and the Earth and its communities. Horst integrated the ancient Indian believes of Ayurveda in his salon business model. Aveda incorporated a holistic way of thinking, the belief that individual beauty is directly linked to the beauty of the world around us. To that end,  Aveda salons are known for their ecologically-minded way of doing business.

The company’s concern about the dangers of chemical fertilizers and pesticides has Aveda sourcing for organic products, in keeping with Ayurvedic principles. Aveda partners with the Indian firm, Nisarga to obtain organic ingredients. Such includes organic turmeric and amla for some of their products, including Invati™ Solutions for Thining Hair.

Aveda was acquired by Estee Lauder in 1997.