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COSMETIC INDUSTRY
Many of the world’s popular cosmetics brands entered the Indian
market in the 1990s as the Indian market opened up to foreign
companies. The cosmetics and personal care industry has been growing
at an average rate of 15-20 percent for the last few years. Growth
has come mainly from the low and medium-priced categories, which
account for 90 percent of the cosmetics market in terms of volume.
Even though mass-market products still constitute the major portion
of the India cosmetics and toiletries market, increased disposable
income has led to growth in demand for premium products. The urban
population in particular, with its rising purchasing power, is the
main force that drives the demand for various cosmetic products in
India.
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The reasons for the growing demand for cosmetic products in India
also include: greater access to television, which has created a
growing awareness of the western world; increased advertising in
general; and greater product choice and availability. The success of
contestants from India at various well known international beauty
pageants in the last few years has also contributed to making Indian
women more conscious of their appearance and more aware of western
cosmetic products and brands. Also, a boom in the Indian fashion
world has contributed to the rise in demand for professional beauty
care products.
The current size of India’s cosmetic and toiletries market is about
$950 million.
The market for specialized skin care products such as sunscreens,
toners, cleansers, astringents, dark circle removing creams,
anti-wrinkle creams and day and night creams has grown steadily in
recent years. Most consumers, however, are still are using only
facial cream and moisturizers, with moisturizing lotions, fairness
creams and facial cleansers being the most popular products. |
