Increase in awareness and disposable income to drive further growth for cosmetics in India

By Andrew McDougall

- Last updated on GMT

Related tags: Disposable income, Hygiene, Cosmetics

Thanks to the availability of international products and rising disposable income in the country, the Indian cosmetics market is poised for further growth, according to a new market report.

The Cosmetic and Personal Care market forms a large part of the parent fast moving consumer goods (FMCG) industry in India, and the latest report from consulting solutions firm Netscribes India claims that the rise of the ‘look good feel good’ factor is taking precedence in the region.

According to the report, expenditure on personal care products has increased over the years with the spurt of media penetration and rising consciousness to global fashion and trends sculpting the course of consumer spending.

Poised for growth in future

“[With]the availability of international products and aided with rising disposable income, the sector is poised for further growth,”says the report.

The biggest factors for growth identified are the increase in disposable income; the growth in the men’s grooming segment; an increase in awareness; growth in the rural segment; and the rise in organized retail.

The increase in disposable income is the primary driving force in the sector as people have the capacity to spend on such products, more so than before.

The male grooming sector is another factor that has emerged, as men pay more attention to their appearance and image, opening the category up to a host of products delineated strictly for their needs.

Market to the masses

Media penetration has been a chief stimulant in heightening awareness among the masses. The big players continue to advertise and look to provide promotional offers in order to create visibility and awareness regarding products to further off-takes.

The report also explains that the big players have been able to reap the rewards by improvising on existing products and catering them towards the needs of local consumers.

Finally, the rural segment has also played an imperative role in the markets growth story. The majority of India’s population resides in rural areas and Netscribes claims the means to tap this segment spells higher margins and could lead to future growth.

The six sub-segments the report concentrates on are skin care, hair care, oral care, color cosmetics, bath and shower, as well as fragrances.

Related topics: All Asia-Pacific, India, Market Trends

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