The Domestic Market For Beauty Products Is Projected To Grow At A CAGR Of Around 22% During The Period 2017-2020.
India is known to have a long heritage of beauty products and cosmetics, as well as aesthetic makeup products. Increasing influence of western trends and international beauty pageants has brought the cosmetics industry into the limelight in the country over the last couple of decades. The domestic market for beauty products is projected to grow at a CAGR of around 22% during the period 2017-2020. The beauty industry is being propelled by growth in organized retail, increase in the number of working women, changing lifestyles, rising disposable income and increasing affordability of luxury and lifestyle-oriented products. Below are the most lucrative market opportunities in the Indian beauty industry to invest your capital for better revenue generation.
Increasing Availability of Small and Affordable Products
There is an increase in the availability of small and handy cosmetic products in India. The desire to look fresh and alluring throughout the day among the Indian consumers is propelling the companies to introduce pocket-friendly sizes of their products, which can be easily carried everywhere. Currently, the market is flush with products in small packs or sachets. The launch of such products is important in small cities and rural areas. Availability of these pocket-friendly sizes has been turning out to be a major profit churner for the companies. Premium hair shampoo and conditioner brand such as TRESemmé has launched its range of shampoos and conditioners in sachets to increase the affordability of its products as well as to capture a broader set of women consumers.
Rising Women Participation in Workforce
The growing awareness about harmful effects of pollution, harmful effects of UV rays, excessive use of conventional cosmetics on the skin, etc., have driven the demand for women’s cosmetics in the country. Young working women in the country are willing to spend on cosmetics to enhance their beauty. Moreover, the launch of new and innovative women’s cosmetics is luring them to purchase more products.
Introduction of Innovative Products with Multiple Benefits
Products with multiple benefits such as anti-ageing, moisturizing and SPF protection are gaining prominence in the cosmetics industry. Foundation creams that are being introduced in the market include SPF protection moisturizers, are oil-free and do not clog pores. Such products with multiple benefits are in high demand, especially among young women.
Changing Distribution Strategies
Increasing internet penetration is driving sales of cosmetic products through online sales channels over traditional retail formats. Rapid urbanization and changing lifestyles are encouraging consumers to purchase cosmetic products through online sales channels instead of traditional formats.
Growing Consumer Interest in Cosmeceutical Products
A growing number of consumers using conventional chemical cosmetics are facing various skin related issues, and consequently, are considering standard chemicals to be unsafe for their skin. Since the raw materials used in the production of organic cosmetics are also produced without using any chemicals or pesticides, they are perceived to be completely safe by the consumers. Hence, consumers are switching to organic, natural cosmetics and cosmeceuticals that are free from harmful chemicals. Moreover, the increasing number of health issues due to chemicals in cosmetics and rising levels of pollution in major cities is driving people to switch to cosmeceuticals, organic or natural cosmetics instead of standard chemical based cosmetics.