Beauty Industry Growth in India
India‘s retail beauty and cosmetics industry, currently estimated at $950 million, is likely to almost treble to $2.68 billion by 2020, experts said. Annual growth in the Indian beauty and cosmetics markets is estimated to remain in the range of 15-20 percent in the coming years, twice as fast as that of the US and European markets.
Massooma, Editor at New Age Salon & Spa magazine and knowledge partner for ‘International Beauty Mart’ (IBM) 2014, believes awareness in India of the latest global beauty trends and the numbers are prompting more international players to set up shop and increase their presence in India.
“India’s cosmetics market is reportedly growing at 15-20 percent annually, twice as fast as that of the US and European markets. Demand for skin whitening products by men as well as women, is driving the trend but other beauty products are not far behind,” she said in a statement.
Over the last five years, cosmetics products have seen a growth of 60 percent. Skin care cosmetics have experienced a relatively slower growth and products such as anti-wrinkle creams, cleansers and toners are not as popular as facial creams, moisturisers and fairness creams in this genre. Companies like Pond’s and Fair & Lovely top the list in this segment.
The number of salons have also gone up. Its growth rate is 35 percent. Cosmetic treatments are also growing at the rate of 5 percent. The hair and beauty industry is seeing a per capita annual spend of $1.2 which is expected to grow to $ 6.2 by 2015. The spa and body treatment segment is estimated to grow approximately $772 million over the next five to eight years.
“Driven by growing consumption in rural and semi-urban areas, the fast-moving consumer goods (FMCG) market is set to double from $14.7 billion in 2008-09 to $30 billion in 2014 in order to become the fourth largest sector in the economy with a market size in excess of $14.7 billion,” Manoj Mehta, chairman, IBM 2014, said.
According to a study titled “Prospects in the FMCG sector,” recently made public by the Associated Chambers of Commerce and Industry of India, FMCG sector will witness more than 50 percent growth in rural and semi-urban India by 2014.
Originally published in Standard Business.