India Cosmetics Market Competition Forecast & Opportunities

The Indian cosmetics sector is consistently growing since last few years. Based on Goldstein research, the value of this sector was USD 11.16 billion in the year 2017 and is estimated to increase at a CAGR of 5.91% in coming years. Moreover, the surge in the number of cosmetic product registrations and cosmetic import registrations in India backs this fact even firmly.

Along with this, it is further estimated that annually the vend sale of cosmetics is growing in a range of 15-20% with domestic demand as one of the rapidly growing sectors worldwide. In the last 5 years, it has grown by 60%.

The cosmetics industry is influenced by the increasing personal(not reusable) income of people, who are becoming more aware of body aesthetics along with high demand for herbal products. People nowadays are steeply inclined towards herbal products. A sector of cosmetics growing at 15% annually. Consumers have now become highly aware about all the side effects that may arise by using products with harmful chemical formulations.

The global personal care market was worth USD 381.57 billion in the year 2016, and is estimated to grow extensively because of enhancing awareness on individual health and very sturdy campaigning as well as advertising ways executed by established companies.

The main use of personal care products is beautification, alteration in appearance and increasing the self-appeal. Novel packaging along with an increase in online product sale is the most influential factors that will drive the market upwards during the forecast period.

The personal care products mainly include creams, moisturizers, soaps, toothpaste, lotions along with shampoos. These products play a vital role in up-keeping the health and hygiene of a person. This increasing awareness for health, grooming and hygiene among the present day population will further enhance the demand for all personal care products.

But in contrast, increasing costs of raw material along with packaging may cause some hindrances in the market growth in the period between 2014-2024. Along with that, the invention of the latest technologies like cosmetic surgery, chemical peels and laser technology will also affect the growth of personal care products to some extent.

Cosmetic market analysis based on product type segmentation:

The cosmetic market mainly comprises of skincare, hair care, oral care, and fragrance products along with some other segments.

The skincare product accounted for about 30% of the whole market in the year 2016. With the rising demand for skin toning products, this sector is expected to rise at an unprecedented rate in the coming years. Whereas, the fragrances sector will grow faster because of the rise in e-retail sales.

The oral care market accounted for about 15.5% in the year 2016. It is estimated that the oral care segment will maintain very steady growth because of the improved awareness of oral hygiene and increased marketing of such products.

According to forecast trends, the Asia Pacific region has the biggest market share, because of the increasing awareness about hygiene and personal care products. North America and Europe are showing steady growth in the forecast period. Similarly, the Middle East & Africa also showed a CAGR 7.2% growth.

Thus, according to these trends, the cosmetics market including all its sectors are now set to increase at an expedited growth rate in the coming years.