The Indian cosmetic industry is going through a stage of rapid growth at the moment. The Indian cosmetic market was valued to be around $11.6 Billion in 2017 and is expected to grow at a CAGR of 15-20 percent during the period 2017-2025. The reasons for the growth of the Indian cosmetic industry are manifold. An increase in purchasing power, an increase in image consciousness among Indians, adoption of western culture and lifestyle have given the necessary impetus for the growth of the cosmetic industry.
India has a long history and rich heritage of beauty products since ancient times. At present, it is a booming industry and it is expected to be the largest cosmetic consuming country in the coming years. Due to the advancement in Television channels and internet connectivity, Indian customers are constantly updated about new beauty products.
The size of India’s cosmetic market is around Rupees 80,300 Crores approximately during the end of 2018; according to a research report published by KPMG.
The cosmetic market in India can be divided into several sections based on the type of product being produced. They are - Fragments, Skincare products, makeup products, skin, hair care products and so on and so forth. The size of the cosmetic industry globally is estimated to be around $274 billion while the Indian cosmetic market is worth up to $12 billion. Among these, the fastest-growing segment is color cosmetics, valued around $60 million in the market.
An important characteristic of the Indian cosmetic industry is the remarkable growth of e-commerce online retail stores which offers its customers with a plethora of beauty and cosmetic products – something that a traditional retail store fails to offer in most cases. Although the market is delivering great promise for local Indian cosmetic brands to develop, however it is not stopping international beauty brands to invest and expand their business operations in India. Brands that retail across the world, like Urban Decay, Tarte, TooFaced, Huda Beauty and SmashBox have so far made limited inroads into the Indian market, although the potential is infinite.
The cost of importing beauty products is much higher than in producing them in the country. Probably the most famous Indian cosmetic brand – Lakme was the first Indian brand to introduce beauty products to Indian women. It is a complete beauty brand that provides all services from color cosmetics to skincare extracts. While traditional players like Shahnaz Husain and Boutique made their mark during the 1990s and early 2000s with products based on Ayurveda and home remedies, newer brands like Kama Ayurveda and Forest Essentials have given these natural products a more luxurious spin. New waves of homegrown brands are creating products that are natural and minimally reliant on chemical extracts.