Market Segment - 500 words

India Cosmetics Market was valued USD 13191.23 Million in FY2020 and is forecast to grow at double digit CAGR of 16.39% through FY2026 to reach USD 28985.33 Million by FY2026 (India Cosmetics Market Report 2021). 50.79% of Indian wear cosmetics daily, 14.14% more than twice a week and 9.84% once a week (Statista Research Department, Mar 24, 2021). Skin care and hair care beauty products own the growth of cosmetics industry in India

India’s middle and upper-middle-class consumers are far more aware of the latest trends in personal grooming, not just in India but across the world. This increasing consciousness has opened up the way for a wide range of new-age cosmetics in a way that simply wasn’t possible before. Of course, there’s also the fact that Indian women now have increasing purchasing power, allowing them to make more adventurous purchase decisions. Finally, there’s India’s young demographic; 34% of the population comprises millennials. As a group, millennials across the world are willing to spend money on unique products and experiences, which is exactly where the Indian cosmetics industry is headed.

This shift in consumption patterns is also the reason why, although the cosmetics industry as a whole is currently growing between 13-18%, some areas are growing much faster than others. And natural cosmetics are one of the fastest-growing categories. Natural cosmetic products include a wide range of products - from organic products to toxin-free products to Ayurveda-based products. The Indian organic skincare market, for instance, is valued at $125 million right now but is growing at a whopping rate of 25% per year (Ghazal Alagh, Aug 17, 2019).

Increasing demand for herbal cosmetic products among Indian consumers is also creating a wide growth opportunity for manufacturers. Rising awareness towards body aesthetics, especially among women is making India one of the largest consumers of cosmetic products around the world.

The Indian Cosmetics Market is categorized based on category, distribution channel and competition. Based on category, the market is categorized into body care, hair care, color cosmetics, men's grooming, fragrances, and others. Body care products which include products such as hand cream, body lotion, among others led the market with a share of 45.01% in FY2020 (India Cosmetics Market Report 2021) and the trend is forecast to continue in the coming years as well.

Rising disposal incomes along with higher levels of awareness and consciousness have led to a major demand for natural cosmetic products. Consumers are quickly realizing that the number of toxins that regular cosmetics carry, from SLES to mineral oil to parabens, can cause serious harm to the body in the long run. While parabens have been found to be highly carcinogenic, mineral oils interfere with the body’s vitamin absorption. Today’s young consumers want to know that the products they use on their hair and skin on a daily basis are actually good for their bodies in the long run.

References:

India Cosmetics Market Report 2021: Analysis & Forecasts 2014-2026 by Body Care, Hair Care, Color Cosmetics, Men's Grooming, Fragrances, Others

Statista Research Department - Frequency of skin care product use in India 2019 https://www.statista.com/statistics/996497/india-use-of-skin-care-products-by-frequency/

2021 Analysis and Review: Organic Cosmetics Market by Product Type – Skin Care, Hair Care, Makeup, Body Care, and Fragrances for 2021 - 2031

(Ghazal Alagh, Aug 17, 2019) Why "Natural Beauty" Is All the Rage: The Journey of India's Alternative Cosmetics Industry