The Growing Indian Cosmetic Industry could be a Lucrative Segment for Business Investment

According to reports, the Indian cosmetic market is expected to register an annual growth of 25 per cent, reaching approximately USD 20 billion by 2025.

By Features Writer
The Growing Indian Cosmetic Industry could be a Lucrative Segment for Business Investment

Starting a cosmetic business is as daunting as any other business. It requires a great amount of patience, dedication, efforts, and investment of time as an enthusiastic entrepreneur. The current Indian business ecosystem is filled with different business ideas that could prove beneficial for entrepreneurs who are dreaming big.

Thus, starting a cosmetics-related business might be a great option for all budding entrepreneurs. Since, the demand for looking fit, attractive and confident is increasing among Indians, it might be the right time to invest in this sector with new business ideas and services.

Being a large segment in itself, the global cosmetic industry has several categorised sectors that could be targeted by young and passionate entrepreneurs. Some of them are :

o Skincare

o Haircare

o Makeup and colour

o Deodorants

o Fragrances


According to reports, the Indian cosmetic market is expected to register an annual growth of 25 per cent, reaching approximately USD 20 billion by 2025. Since the industry is being penetrated with new business ideas and innovations like organic cosmetic products, tech-based cosmetic services, and so on, the numbers will continue to elevate, emerging as one of the massive industries for business investment.

A Lucrative Segment for both Men and Women Customers

Things, in terms of business offerings and operations, become relatively easy when there is a huge audience to target for selling your products and services. Similar is the situation with the cosmetic-related business.

The industry has turned into something that is both men and women-centric where there are numerous cosmetic products for both. In fact, as per the sources, the demand for men-related cosmetic products will continue to grow, which is eventually helping the Indian male grooming industry to grow simultaneously. After all, with good, clean looks come confidence and a positive attitude, and who doesn't want that? 

The Growing Demand of Organic, Herbal, and Ayurvedic Products

Gone are those days when customers used to rely heavily on chemically produced cosmetic products for enhancing their beauty. Since staying fit and opting for a healthier lifestyle is in trend, customers are looking for healthier and safer options, even in the cosmetic industry.

This is why the demand for organic, herbal, and ayurvedic cosmetic products is increasing on a daily basis. People now want to look attractive, but in a healthier and guilt-free manner. This trend is here to stay for a long time, providing opportunities for aspiring entrepreneurs.

SushilKhaitan, CEO, Pure Nutrition says, "The market will maintain healthy growth due to rising preference for specialised cosmetic products such as organic, herbal and ayurvedic products. Principal areas that are expected to grow to include colour cosmetics, fragrances, specialised skincare, and make-up cosmetics."

The Rising Disposable Income

The rising disposable income of people is one major factor, which is booming the entire Indian cosmetic industry. This is allowing customers to spend more on different products along with experiencing different cosmetic services as well.

The increased premium on personal grooming, changes in consumption patterns and lifestyles are some other factors that will help the industry to elevate in the upcoming time.

Franchising: An Add-on Feature

Franchising is without a doubt, a one-stop destination for most of the entrepreneurs existing today. Franchising has managed to penetrate almost every business sector, including the cosmetic industry as well.

Brands like KAMA Ayurveda, Vega Industries Private Limited, La Aroma are already into franchising, all of which are doing excessively well along with expanding their business through different regions.

For example, the franchise of KAMA Ayurveda is available at a cost of around INR 30-50 lakhs whereas the franchise of Vega Industries could be obtained at an investment of INR 10-20 lakhs. An average area around 300-600 sqft is required for becoming a potential franchisee of such firms.

star franchise india
Sivakumar b : 29, Jul 2019 at 09:27 AM
I requered 25 laksh investors
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