Growth Drivers Of Beauty Industry In India
The cosmetics market in India currently has an overall market standing of USD 6.5 billion and is expected to exhibit strong growth of 22% by 2025. The beauty industry makes up 22 percent of India's market for consumer packaged goods. With the improving purchasing power, demand for enhanced products and increasing image consciousness of the Indian clientele, many international brands started establishing footprints in India. There are many factors that are fuelling up the beauty industry of India. Below are the major factors that drive the cosmetics industry.
Products with multiple benefits such as those with anti-ageing properties, moisturizing care and suntan protection are very popular in the skin care cosmetics industry. Foundation creams that offer multiple benefits such as sun protection, moisturizing, oil-free and no pore-clogging are witnessing rising demand, especially from the working women population. High demand for anti-dandruff and anti-hair loss hair care products is being witnessed in the hair care segment. Increasing pollution and unhealthy lifestyles have compelled the consumers for the adoption of alternatives such as cosmeceuticals, natural and organic hair care products across the country.
Shifting Trend to Organic Based Cosmetics
With the increase in the number of healthcare problems associated with traditional cosmetics are compelling consumers to shift to organic cosmetics. These are especially popular among the younger generation. A major share in demand for organic cosmetics across the globe is emanating from consumers in the age group of below 30years.
Increasing Research & Development Activities
Major players are investing heavily in the research and development of new cosmetics and cosmeceuticals. These players are investing significantly in innovations like hypoallergenic creams, which have minimal impact on health. Cosmeceuticals generally have lower contamination of pesticide residues, which makes them an attractive choice for consumers.
Growing Demand for Innovatively Packaged Cosmetics
Currently, the Innovative packaging is playing an important role in driving sales of cosmetics. Multinationals prefer to use environmentally friendly packaging material. Moreover, specifications such as easy to open caps, packs which stand up better in showers, portion control devices are convenient and easy to use. Packaging requirements of men are different from that of women. For instance, when it comes to facing creams, men do not like to stick their fingers into a jar. Thus, companies are offering creams in pump packages. Pack functionality is also very important in this sector as male consumers seek more practical and simple forms of packaging. In case of men’s fragrances, innovative bottle designs hugely influence the purchase. Further, consumers are actively seeking cosmetics with packages/labels, which depict that the manufacturer complies with environmental ethics. Understanding how this commitment to sustainability can be communicated on the packaging is becoming a key to attract more consumers.
New product developments happening in the market
Going green has become the new anthem in the fashion and lifestyle categories. As a result, Cosmetic brands are also going eco-friendly with the range. With increasing inclination of Indian consumers towards natural and herbal cosmetic products, the Indian cosmetics industry encountered numerous herbal cosmetic brands like Forest Essentials, Biotique, Himalaya Herbals, Blossom Kochhar, VLCC, Dabur, Lotus, Jovees, Kama Ayurveda, Patanjali, Just Herbs, and many more. Even foreign brands have now dived into natural products. For Instance, in 2016, French cosmetics brand L’Oreal came out with Ayurvedic shampoo, conditioner, oil, and cream under its Garnier Ultra Blends brand. Patanjali Ayurved, in a short span, has become a household name. Patanjali has a vast collection of shampoos, soaps, and beauty products. Indian herbal and natural cosmetic products have a great demand in the overseas market as well.