Indian Cosmetics Market Projected To Expand Thrice In 2020

This rapid expansion of the Indian cosmetics market also implies the rapid influx of new players in the market. The applications for cosmetic product registration and cosmetic import license are sure to increase in the near future, and the authorities must be prepared to tackle such situations.

India is quickly becoming a global focal point in almost every aspect. India became the world’s fifth largest economy in 2019, which eventually means that people now have more money and they can spend more. With wealth comes well-being, and an interest towards grooming and beautification.

With the far reaching effects of globalization, along with the modernization and urbanization of India, the demand for cosmetic beauty products has increased tenfold in recent years. Thanks to the rapidly increasing corporate workforce and the influence of the entertainment and fashion industries on the daily lives of people.

The beauty Industry of India and its fast-paced growth can be comprehended by these interesting facts:

●     The CAGR of the cosmetics industry in India is expected to be around 17%

●     The beauty and cosmetics market of India is projected at a size of USD 2.68 billion by the year 2020. It’s currently valued at USD 950 million.

●     Women contribute over 85% of the industry’s revenue. While 35% of working women intend to spend 35% of their income on themselves.

These figures are indeed exciting for companies in the cosmetics sector. This exponential growth looks promising due to some very strong factors influencing the market. The major factors influencing this growth are the increased purchasing power and the growing fashion consciousness among common people.

Common people are now becoming more aware about personal hygiene and have started to accept the importance of physical appearance and presentation. Moreover, the increasing share of women in the country’s workforce is also a plausible driver of this growth in the market.

While women influence a major part of the market, men are also starting to catch up. The demand for personal grooming products is fairly increasing among men. Especially for hair products and complexion toning creams.

However, the expanding market is also an indicator of the increasing competition. While Indian people have a subtle fascination about premium foreign cosmetic products, they are also concerned about the price tag. Moreover, people are now shifting their interest towards ‘organic’ and ‘herbal’ cosmetic products which certainly don’t have any ill-effects on the body.

A part of this has also to be played by the government, to ensure that the registration procedures for new cosmetic products are less complex and more expedited to match India’s cosmetic industry with the global market.