Impressive growth rate

Amid changing lifestyle and increasing consumer awareness, India cosmetics market now provides lucrative opportunities for existing market players as well as new comers.

In a new research report titled “Indian Cosmetic Sector Analysis (2009-2012)”, RNCOS explains that the cosmetic industry is among the most dynamic sectors in India and that colour cosmetics is the segment that should experiment the fastest growth, with a compound annual growth rate of around 12% during 2010-2013.

Main reasons for the growth of the colour cosmetics segment are increased access to branded products through specialist retailers, supermarkets, and increasing population of working ladies in the country,” explains RNCOS.

According to UbiFrance, the French trade commission, lipsticks and nail polishes account for 60% of make-up sales in India. Hindustan Lever Limited brand, Lakmé, which was created at the end of the 1950s, remains India’s leading beauty brand. M.A.C. (Estée Lauder) et Lancôme (L’Oréal) are among the leading foreign brands in the luxury make-up market segment.

All beauty segments concerned

Along with colour cosmetics, the entire beauty and personal care market in India should sustain its upward growth trend in the coming years.

The potential for growth is huge as most product categories only have low penetration rates within the Indian population. If 90% of Indian households use soaps, only 50% use toothpastes or shampoos and 23% only use skincare products.

According to RNCOS, even Indian males are showing a growing interest to cosmetics and the fast emerging men’s grooming products market is boosting the cosmetic sector. The mindset of male consumers is changing due to the increasing influence of media and western exposure.