Growth in the market for cosmetics and personal care products in India is forecast to continue booming on the back of increased income and consumer knowledge, according to market researcher RNCOS.
Consumer habits in western culture have had a great deal of influence on the spending patterns and consumer habits of the Indian population in recent years, particularly the middle class, who are keen to try new products.
This has led many Indian consumers through a period of experimentation with their personal care routines, acquiring new habits that have helped forge the development of niche and evolving categories.
One new emerging category in particular is the market for green and natural cosmetics, a trend that is mirroring the growth already seen in Western markets, while further growth is also forecast for the nutricosmetic and cosmeceutical categories.
Cosmetics market will nearly double in four years
According to RNCOS all of these factors have helped to drive the market to a value of INR422.3bn (€6.77bn), and is expected to grow at an estimated CAGR of 18 per cent between 2011 and 2014 to reach INR812.7bn by 2014.
The trends and forecasts for the value of the market are contained in a newly published report entitled ‘Indian Cosmetics Sector Analysis (2009 – 2012) that highlights the most important trends and future growth prospects.
“Our research identified that, as the country’s literacy rate is improving, consumers are becoming more conscious about their looks and lifestyle, thus resulting in the increased demand for specialized and high quality cosmetics products,” RNCOS stated about the report.
“Foreign players have identified this market opportunity and reacted efficiently with their offerings of world renowned portfolios, which not only fulfilled the existing demand, but also made the Indian consumer familiar with the international cosmetic brands."
Domestic players respond to market movement
RNCOS also identifies that, in parallel with the development of the foreign players, Indian cosmetic companies are also starting to make greater inroads into the market by upgrading the quality and technology for their products.
The winner in this equation is the Indian consumer, who, according to the market researchers, has ended up with better quality personal care products at more affordable prices.