Indian cosmetics market poised for 17 percent growth during 2011-15

Rising purchasing power and fashion consciousness are driving the cosmetics sector in India, which is currently estimated at INR 261.4bn (EUR 3.91bn) and anticipated to grow at a CAGR of around 17 percent during 2011-15, according to a new report from Rncos.

 ‘Indian Cosmetic Sector Forecast to 2015’ highlights that the market has been boosted by media promotion and the rising influence of western culture, a trend which is expected to continue in the future.

Shushmul Maheshwari, chief executive of Rncos, told CosmeticsDesign-Europe.com that as Indian consumers are becoming more conscious of their looks, they are looking for tailored products to fulfill their specific needs, with demand in the market not just limited to traditional products such as talcum powder and fairness creams.

 “Anti-aging products, skin-brightening products, advanced hair care products like conditioners and hair colours are some of the cosmetics that are proving popular in India,” he said.

Use of skin care products has grown considerably

Maheshwari notes that the use of skin care products in the country has grown considerably due to factors such as rising disposable income and the wider availability of different products, whereas previously, the usage of skin care products was comparatively low.

Men’s grooming products are also increasing in popularity, according to the report, and the hair care market is forecast to become more prominent in the near future.

According to Maheshwari, fragrances and colour cosmetics are likely to witness maximum growth in India over the coming years. “Influence of the western world, the increasing working population and growing consciousness about looks and appearance are driving the growth in these segments,” he said.

The report also revealed that Indian consumers are increasingly moving towards more natural cosmetics. Maheshwari attributes this to growing awareness of “chemical ingredients in cosmetics products and their hazardous effects on health and environment”, together with the fact that “natural ingredients present in herbal cosmetics also enhance the skin’s biological function and provide nutrients necessary for skin and hair”. 

Various international cosmetic companies are present in India, including Avon, Revlon and L’Oreal, which has its own manufacturing plant in Pune.