The personal care and cosmetics sector is expanding rapidly across all segments. The industry’s continued expansion reveals consumers’ sustained interest in fundamental personal care, hygiene routines and aesthetic regimens. Emerging markets offer tremendous opportunities as income levels rise and consumers look for quality items rather than cost-efficient products.
International Market
Over $500 billion were spent on personal care products globally in 2022, and the industry is anticipated to be worth over $600 billion by 2026. Skincare currently has the highest share in the industry, at 44%, followed by hair care and cosmetics. The industry is shifting towards organic, cruelty free and vegan products. The U.S, China, Japan, Brazil and Germany have the biggest market size of consumers. L’Oréal, Estée Lauder, Procter & Gamble, Beiersdorf, and Shiseido are a few of key market players dominating the personal care products industry. All are present in India.
The “direct-to-customer” approach, selling a product to a company’s own customers, also propels the beauty and cosmetics business forward. Before the Covid-19, pandemic, only small brands used these channels to reach customers. However, supply chain issues caused by the pandemic forced several established companies to launch “direct-to-customer” operations to get customers directly.
India’s Personal Care Market
In India, both women and men are substantial users of personal care products. Traditional Indian skin products play a major role in hair care and skin care and some Western companies have incorporated these ingredients into their own brands. Upper middle class Indians have embraced brands from Unilever, Procter & Gamble, L’Oreal, Avon, Revlon and Colgate Palmolive. Japanese and Korean companies have a significant role in India as well.
Indian Personal Care Industry
The personal care and cosmetic industry is one of the fastest-growing consumer products sectors in India. India’s top three export destinations are Hong Kong, UAE and the United States, whereas imports are primarily from China, USA and Vietnam. Herbal, organic, and Ayurvedic beauty products and cosmetics are popular Indian exports because of their high quality and all-natural ingredients. The advantage of Indian skincare products is the fact that they cater to a diverse range of skin types, a benefit lacking in international skin care brands. These products are generally certified from international accreditation bodies such as PETA, BDIH and COSMOS. Foreign firms with subsidiaries in India include Revlon, L’Oreal India, Avon Beauty Products India, Oriflame India, Procter & Gamble, Johnson & Johnson, and Unilever.
Local Production in India
India has a considerable strategic edge over ASEAN (The Association of Southeast Asian Nations) nations in manufacturing, thanks to the low cost of labor, power, and water, coupled with better export infrastructure, decreasing transit time abroad.
Local firms that that are strong include Nykaa, SUGAR cosmetics, Cavinkare, Dabur, Godrej, Lotus Herbals, Aroma Magic, Biotique, ITC, Himalaya Drug Company and Nature’s Essence.
Indian Regulatory Framework
The primary regulatory body for the cosmetics sector is India’s Central Drugs Standard Control Organization. The regulations cover formulation, label and claims and need to be registered through the e-Governance portal SUGAM.
Way Forward
The growth of the Indian middle class and the increasing per capita income of these consumer continues to expand all aspects of the personal care products market in India. Amritt experts can help your company to enter, expand and succeed in the Indian economy which is now larger than France and the United Kingdom.
