Indian companies focus in on global organic cosmetics market
Increasingly, Indian companies are getting involved in the supply of organic certified ingredients to the $7bn global industry, while there is equally scope amongst more affluent middle class consumers for the products in the country.
Speaking at a recent convention at the Taj President in Mumbai, Dr Selvam Daniel, managing director of Ecocert India said that an increasing number of Indian companies are looking at business plans that focus on the market.
Tapping into huge global growth
“The mind-blowing growth in the global organic cosmetic industry continues with the number of product launches increasing from 615 products in 2002 to about 2,000 products last year,” said Dr. Daniel.
He went on to explain that the US, the UK, France, Canada and Japan are the top five markets for organic certified cosmetic and personal care products.
All of these are highly developed markets where the potential for further growth is limited, but in India, where the middle class is rapidly expanding, the scope for future growth should prove to be enormous.
Longer-term consumer prospects look good
For the moment the market for organic personal care products in the country is still very small, as most wealthier Indians tend to buy these type of products when they travel abroad, but the longer-term prospects look good for the development of organic products.
Despite the immediate scope being more limited for the consumer market, Indian suppliers to the personal care industry are in a strong position because of extensive resources and cost advantages.
Although gaining certification remains a challenge, more and more ingredients suppliers are taking the plunge in an attempt to muscle in on the market and Ecocert India wants to encourage more to take up the challenge.
Ecocert India gaining ground on certification
Ecocert India is a division of Ecocert France and has worked on certifying companies in the areas of processing, exportation and farming, having now certified a total of 300,000 hectares of land in the country.
“After China, India is the most bio-diverse country and today every kind of natural solvent is available in the India market,” said Dr. R Govinaragan, principle scientist at the Himalaya Drug Company.
“The situation is fast improving for players in the Indian organic cosmetic industry. They are in a position to command higher margins while increasing their global and India market share rapidly.
