The Indian consumers of cosmetic and beauty care products have become more knowledgeable and demanding today than ever before. Both, the Indian and global brands are rushing to cater to the Indian consumers’ requirements, leading to an exponentially growing market, laced with innovative products
The Indian market for beauty and body care products is set for a quantum leap in the next few years, if research reports by a number of reputed research agencies are any indication. The Indian beauty industry is said to be growing twice as fast as the markets of the United States and Europe with a CAGR of about 18 per cent, according to a recently published research report by KPMG.
The rise and rise of cosmeceutical products
The beauty and body care products nowadays also include cosmeceuticals, a term coined to describe cosmetic products with bioactive components claimed to have medical properties. The Indian cosmeceutical market is currently burgeoning with the emergence of online shopping portals, according to a research study by the business consulting and research firm, RNCOS, ‘India Premium Cosmeceuticals Market Outlook 2022’. The study forecasts this market to register a compound annual growth rate (CAGR) of about 16 per cent during 2016 to 2022. Anti-aging in the skin care cosmeceutical segment has substantially boosted the market growth in India. In the mean time, the global physician dispensed cosmeceuticals market is expected to reach US$ 31,322.14 million by 2026, according to the latest research study titled, “Physician Dispensed Cosmeceuticals Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2018 – 2026”, published by Transparency Market Research.
The growth contributors
The domestic market for personal care products is expected to grow at CAGR of around 22 per cent during the period 2017-2020, according to the Indian Cosmeceutical, Cosmetics & Personal Care Market,2022 study, conducted by TechSci Research, a global market research and consulting company, on behalf of Assocham India. The main reasons for the growth, according the report, include growing disposable income of the Indian middle class, increasing awareness of new products which have been successful globally, and the rise in urbanization.
Interestingly, the cosmeceutical, cosmetics and personal care sector is projected to grow at a CAGR of approximately 3.5 per cent globally, which is much lower than the expected growth in India, the study points out.
A natural touch
The growth of the internet and social media has provided even smaller companies the ability to reach out to a much wider customer base, the TechSci Research states. A factor which has escalated the competition in the personal care market. This has also resulted in the awareness of and demand for organic and Ayurvedic products – thanks to which a number of globally reputed beauty product companies can now be seen competing strongly with reinvigorated Indian companies in the ‘natural’ product space. The beauty product market has become more vibrant with the success of Ayurvedic product players like Patanjali which have been doubling their income since the last few years.
The global brands that have entered the Aurvedic beauty product market include L’Oreal, which launched its Ayurvedic ingredients based products including conditioner, oil, shampoo and cream under its Garnier Ultra Blends brand in 2016. The biggest segment in the Indian beauty care products market is skin care, which accounts for about 18 per cent of the total market. To capitalize on the growing demand for this product range, national as well as global players are currently in a launch spree of skin care products that include anti-blemish creams, face washes, scrubs, exfoliators and anti-ageing creams, among others, states the “India Premium Cosmeceuticals Market Outlook 2022” report.
Men’s grooming products
The Indian men’s grooming market is also growing at an incredible rate. According to another study by Assocham, jointly carried out along with MRSS, the men’s grooming products market has been witnessing a growth of over 42 per cent during the past five years, which is faster than the total growth in the Indian beauty care market in as many years. Meanwhile, the Indian herbal cosmetics industry is expected to grow at an annual rate of 12 per cent.
According to the Assocham study, the country’s cosmetic sector is expected to grow substantially to $35 billion by 2035, from the present $6.5 billion. Another research report findings published recently by Franchise India (Wellness) states that the Indian retail beauty and cosmetics market in India, which is currently worth about US$ 950 million, is expected to reach US$ 2.68 billion by 2020. The beauty care market is poised to become the main contributor to the growth of Indian wellness industry, which consists of cosmetic products, salons, and cosmetics treatment centers.