A report from market research firm RNCOS claims that the Indian cosmetic industry is one of the rapidly growing industries due to the changing lifestyle and spreading consumer awareness, and urge to look and feel good.
The "Indian Cosmetic Sector Analysis (2009-2012)" report, also states that with increasing disposable income and product availability, cosmetic sales in India are expected to surge at a CAGR of around 18 per cent during 2011-2014.
Men starting to play catch up
And although the market growth is accredited to female consumers, the mind set of men in India also appears to be changing due to the increasing influence of the media and Western exposure.
The men's grooming products market is fast emerging and has boosted the cosmetic sector. Further to this, urban areas contribute the maximum to the overall cosmetic revenue, however the rural region still holds a huge potential for players.
The key factor for future growth in the rural region, according to RNCOS, will be low price and high quality products with easily accessible supply chain networks.
Industry players playing ball
The report claims that the optimistic future outlook of the Indian cosmetics industry is based on the rise in a variety of products offered by the industry players.
These companies have started going for online retailing and are offering specialised products to generate revenue from every segment.
RNCOS also states that rising demand for cosmeceuticals and nutricosmetics from Indian consumers will also pave way for the Indian cosmetic market during the forecast period, and help sustain future growth.