With a CAGR of 40 per cent per year, the spa industry is the subsector with the most significant growth prospects among all personal care subsectors in India.
‘Invest on yourself, because t is going to carry you all your life.’
People tend to have taken this saying quite seriously these days, which is one of the reasons, why the growth potential of beauty and personal care industry in India is so high.
Himanshu Gupta , General Manager, Sales & Marketing B2B Events, Sumansa Exhibitions, said, "The overall beauty and personal care market in India is estimated at Rs. 74,700 crore by retail sales value and the personal care industry in India has been expanding at 13 per cent year-on-year, far surpassing the overall economic growth rate. India’s incredibly large consumer base has a growing disposable income and places importance on personal care. Retail sales look to increase at an average of seven percent over the next decade and that presents a huge opportunity to global brands to tap exponential growth that we are going to witness. The beauty business is booming and there’s enough room for more players."
As per analysts, the Ayurvedic market is estimated to be at Rs 4,500 crore at present. The herbal products forms 6-7 per cent of the overall personal care products market currently while the estimates are thatit could grow to about 10 per cent of the segment by FY20 as the trend accelerates. Thus, various players are rebooting their business strategies and investing in new products or making new acquisitions to reap in the benefit of the herbal age.
With a CAGR of 40 per cent per year, the spa industry is the sub sector with the most significant growth prospects among all personal care sub sectors in India.
Here are other factors which contribute to the rapid growth of beauty and personal care industry in India:
Earlier, the lifestyle was different; people used all the natural products, which they were directly getting from nature. But now the time has changed and very few get to enjoy the luxury of natural benefits directly from nature.
Due to pollution in water and air, one hardly dares to use the natural products available in the market in cities, which are either adultered or highly fertilized, thus they have valued to take care of their body through natural spas and salons, where they extract natural oils for the customers.
India is a land of Ayurveda, which has been its core strength from thousands of years. Now that the beauty industry has recognized the benefits and demands of Ayurveda, the foreign companies are flying down to India to invest in here. The local companies too have grown in numbers.
Shahnaz Husain, the lady whose name is synonymous with Herbal and Ayurveda has over 200 Signature salons and spas worldwide states, ‘India being a land of Ayurveda and a hot topic these days has special attraction for the foreigners and as per an estimate by Associated Chambers of Commerce and Industry ASSOCAM, each foreigner visiting India is likely to spend around Rs. 10,000 to Rs. 35,000 for availing services pertaining to this field. The maximum inflow of tourists is expected from UK, Canada, Australia, Malaysia, South Africa, Singapore and Sri Lanka, apart from over 4 lakh domestic tourists. Over 40,000 professionals would be employed to cater to the burgeoning 500 crore Ayurvedic Industry and still counting!!
Pushkaraj Shenai, Chairman, Advisory Committee – Beauty India & CEO – Lakme Lever Pvt. Ltd., said, "A platform like Beauty India has the potential to shape the future of the Indian beauty industry. The US $3 billion beauty services industry offers huge opportunities across the value chain for talented beauty and styling professionals, managers and entrepreneurs. Apart from the opportunity in the domestic market there is significant interest in the global market for all things Indian."
According to Pawan Kamra of Kairali Ayurvedic centre, “Spa franchise is becoming hot market with profit margins in the spa industry as high as 60-65 per cent. With 25 spa centres that includes even franchisees, in India and abroad.”
Kairali's mantra is, “A massage a week will keep the doctor away”.