Indian Cosmetic Market

Report by Official Research Partners “Net scribes – Leading Research Consultants”

The beauty industry in India is growing at a break-neck pace, almost twice as fast as that of the markets in the United States and Europe. According to recent research, the overall Indian beauty and cosmetic market is currently pegged at INR 60 billion and is expected to reach INR 170 billion by 2020; growing at the rate of 15-20% per annum.

The consumers of the Indian beauty industry have come a long way. From being satisfied with a simple red lipstick and black kohl eyeliner, they now want the whole package, with products ranging from an inbuilt sunscreen foundation to shampoos that not only cleanse the hair but enhance hair growth. One of the major evolutions the industry has witnessed is that beauty products are no longer restricted to women; men have taken to grooming and preening as well. The rise in the number of men’s salon these days bears testament to this fact. Services like manicure, pedicure, facial, and hair styling, which were once exclusively for women, have become part and parcel of men’s grooming routine too.

Beauty industry in India can be divided into some major segments like baby care, bath and shower, colour cosmetics, deodorants, depilatories, fragrances, hair care, men’s grooming, oral care, sets/kits, skin care, and sun care. The number of beauty salons in the country is increasing at a rate of almost 35 percent annually. According to research, in India, the market for hair care alone is valued at INR 36billionand growing annually at a rate of 20 percent. Another segment of the beauty industry which has become highly profitable in the recent years is bridal makeup. A typical bridal makeup package can cost anything between INR 50000 and INR 500000.

The prospects of the Indian beauty industry look bright, with the colour cosmetics segment predicted to continue its dominance over the market landscape. Valued at INR 3.8 billion, the colour cosmetics market accounts for 90% of the cosmetics market share.Especially with the advent of low and medium priced cosmetic goods that are high on quality, the colour cosmetics market is expected to bring in substantial revenue in the coming years.

Sourav Mukherjee, Founder of Netscribes, a leading market research agency that been actively researching the Indian Beauty industry for more than a decade, says “Driven by the revolutionized cosmetic consumption of the Indian consumers, the beauty industry in India has evolved tremendously over the years and is expected to become a INR 170 billion market by the end of 2020. One of the dominant sectors that have been witnessing growth is the men’s personal grooming market segment. Other sectors have also seen considerable development, thereby attracting various investors to fund expansion plans of salons, spas and other institutions that provide skin and hair treatments.