18 May 2017, 03:05 PM

The evolution of Indian cosmetics industry

The evolution of Indian cosmetics industry

Indian consumers are more inclined towards natural and herbal cosmetic products. The herbal cosmetics industry is expected to grow at a rate of 12% in India.

The 1990s did not just witness economic liberalisation in India but also saw the most number of wins in beauty contests by Indians with two Miss Universe Crowns (1994 and 2000) and four Miss World Crowns (1994, 1997, 1999 and 2000).

It is widely believed that along with the growing popularity of yoga, the win by Indian beauties on the international platform contributed to the popularity and sale of cosmetics in India. The Indian cosmetics industry had a strong growth trajectory after the Miss World pageant that was held in India in 1996 and was sponsored by Godrej.

Since then, the Indian cosmetic industry has grown in leaps and bounds. There were many international brands, which entered the country after the policy of economic liberalisation. Side by side, the Indian cosmetics market expanded.  In 1999, the Indian cosmetics market grew 8% over 1998. It grew by 8.7% in current value terms in 2001, with value sales amounting to Rs.126 billion. Total value since 1995 was 54% in current terms, equating to 25% in constant terms. The increase in the middle class population with disposable incomes and increasing health and fashion consciousness can be considered to be the major factors behind the increasing demand of cosmetic products that are mostly herbal and came with an assurance of high quality.

Growth in the cosmetics industry in India

According to a recent report by Research and Markets named “India Cosmetic Market Overview” (November 2016), the country’s cosmetic market was growing with a CAGR of 17.06% over a period of five years. In 2008, the industry growth was counted to be 7% and it did a business of USD2.5 billion. In 2016, the market size of India’s beauty, cosmetic and grooming market was USD6.5 billion and is expected to reach USD20 billion by 2025, according to a report by Assocham (2016).