The Indian beauty & Cosmetic market is one of the fastest growing market in the world. It was valued at around 15.38 billion in 2020. The Indian cosmetics and beauty products segment has been witnessing steady growth of late. It is primarily categorized into five major categories – body care, face care, hair care, hand care and color cosmetics. Indian beauty and personal care (BPC) industry is estimated to be worth USD 8 billion.
The cosmetics and personal care industry is one of the fastest growing consumer products sectors in India with a strong potential for foreign companies. The personal care and cosmetics sector in India has shown continued strong growth, with increasing shelf space in retail stores and boutiques in India, stocking cosmetics from around the world. Overall the market is moving towards premiumization, with premium segment growing at 6.3%.
The swift growth of the beauty business has not only impacted Indian firms to encourage competition in the space, but has also lured numerous international brands to the country. To give an instance, today, India has very few professional make-up lines that can cater to the wide range of salons and professional make-up artists across the country. This gives an opportunity to international professional make-up lines to penetrate into the market.
The Indian beauty and cosmetic industry has witnessed significant growth over the years, driven by various factors such as increasing disposable incomes, changing lifestyles, and a growing focus on personal grooming and appearance. Here are some insights into the Indian beauty and cosmetic industry, along with relevant data:
1. Market Size and Growth:
The Indian beauty and cosmetic industry was valued at approximately $15.38 billion in 2020. It is expected to grow at a CAGR (Compound Annual Growth Rate) of around 7.4% from 2021 to 2026. The market is fueled by rising consumer awareness, urbanization, and the influence of social media.
2. Consumer Segments:
The industry caters to various consumer segments, including women, men, and children.
– Increasingly, men’s grooming and beauty products have gained popularity, with a growing number of men investing in personal care items.
– The demand for natural and organic products has also witnessed a surge, driven by health-conscious consumers.
3. Product Categories:
– The Indian beauty and cosmetic industry covers a wide range of product categories, including skincare, haircare, color cosmetics, fragrances, and personal care products.
– Skincare products hold the largest market share, driven by factors like rising pollution levels, awareness about skin health, and a desire for a youthful appearance.
– Haircare products, such as shampoos, conditioners, and hair oils, also constitute a significant portion of the market.
4. Distribution Channels:
– Traditional brick-and-mortar retail stores continue to dominate the distribution landscape, including standalone beauty stores, supermarkets, and pharmacies.
– However, e-commerce platforms have witnessed tremendous growth in recent years, providing consumers with convenience, wider product choices, and attractive discounts.
– Online beauty retailers, along with social media platforms, have played a crucial role in promoting and selling beauty products.
5. Key Players:
– The Indian beauty and cosmetic industry consist of both international and domestic brands.
– Some of the prominent international brands include L’Oréal, Estée Lauder, Maybelline, and MAC, among others.
– Indian brands like Lakmé, Lotus Herbals, Forest Essentials, and Biotique have also gained popularity.
– Additionally, several direct-selling companies like Amway and Oriflame have a significant presence in the market.
6. Government Regulations:
– The Indian beauty and cosmetic industry is regulated by the Food Safety and Standards Authority of India (FSSAI) and the Drug Controller General of India (DCGI).
– These regulatory bodies ensure the safety and quality of cosmetic products, including the labeling requirements and the prohibition of certain ingredients.
It’s important to note that the above-mentioned data is based on available information up until September 2021, and the industry dynamics may have evolved since then.