Future And Growth Of Beauty Industry of India
The overall Beauty Business in India is growing rapidly with the cosmetics market growing at 15-20% annually. The retail beauty and cosmetics market in India currently estimated at USD 950 million is pegged at USD 2.68 billion by the year 2020. The beauty care market in India is likely to become the main contributor to the growth of Indian wellness industry and it consists of salons, cosmetic products, cosmetics treatment centres and cosmetic products. Women contribute to over 85% of the Salon industry revenue, while men’s hair is the next wave set to hit the Indian Salon Industry. The Indian Cosmetics Industry has seen a tremendous growth in the last few years due to rising beauty concerns among both men and women.
Over the last five years the growth figures are:
-Cosmetic Products - 60%
-Salons - 35%;
-Cosmetic Treatments - 5%
According to a research report, the Indian cosmetics industry holds promising growth prospects for both existing and new players. The forecast for hair and beauty industry is pegged at a per capita annual spend of USD1.2 which is expected to grow to USD 6.2. The country’s cosmetic sector has, in fact, emerged as one of the markets holding immense growth potential. The future outlook seems exceptionally bright due to new product launches which are catering to consumers’ growing requirements and will fuel growth in the industry. According to the latest research report, the Indian cosmetics market registered impressive sales, and with rising purchasing power and growing fashion consciousness, the industry is estimated to expand at an annual growth rate of around 17%. Based on an analysis of consumer behaviour, it has been observed that many consumers are increasingly shifting towards ‘natural’ and ‘herbal’ cosmetic products as they are associated with bio-active ingredients and safe for human skin. In addition to this, it is noticed that women are spending more on cosmetics as they are actively earning and spending money on grooming themselves.
It was revealed that colour cosmetics market is growing at a rapid rate in comparison to other segments. As for the International players already present in India, there has been a slew of beauty products makers have lined up to cash in on a business boom in India. Various luxury brands such as Victoria Secrets, Bodyography and Labiocos are expected to clamour for the Indian consumer wallet and mindshare by 2020. Although a slowing economy and slowdown in consumer spending on non-essential products and services clearly haven't stopped Indian women or men from putting up their best face. Most of the international brands are trying to cash in on the huge appetite for foreign cosmetic brands in India amid growing spending power among the country's large section of women, thanks to the increasing number of ladies entering the corporate workforce every year. On an average, working women intend to spend 35% or more of their income on themselves