A new report titled: “India Women’s Cosmetics Market Forecast & Opportunities”, published by TechSci Research hints that growth will hit a CAGR of over 16% during the period 2015 – 2020, putting it amongst the hottest markets in the world for growth in cosmetics.
The report outlines how growth is being driven by an increase in per capita income, a rising urban middle class population and the growing desire among women to look their best and alluring.
The changing social structure and mobility in the country is also giving way to a larger distribution network for cosmetics, which in turn is seeing a distinct pattern of increased growth in smaller cities and associated urban areas.
Changing social structure and attitudes
On top of this social attitudes regarding the use of colour cosmetics are also fast changing, with Indian women no longer reserving the use of make-up for special occasions, but adding it as a regular part of their everyday beauty routines.
So what’s driving the growth? The market researcher believes that an increasing awareness of new products bought on by aggressive advertising campaigns, combined with a significant increase in the number of products being launched to target women is what is really driving the market right now, and will continue to do so in the next few years.
What is also prompting women to try new products, often for the first time, are promotions and samples on the back of advertising campaigns, that help give them new ideas for their beauty routines and the type of look they want to achieve.
The rising influence of the West
Likewise, rising Western influence and the introduction of associated fashions has also led to more Indian women reaching out for cosmetic help to achieve the looks they are aspiring to, the market researcher says.
"Owing to the rising desire amongst Indian women to be financially independent, there has been more than 10% increase in the number of working women in India over the last four decades,” said Karan Chechi, research director with TechSci Research.
“High disposable income and changing lifestyle pattern among women is anticipated to intensify the opportunities for women's cosmetic players operating in the country.The market is currently being dominated by HUL, which is expected to retain its dominance through 2020."