07 May 2019
Posted in Press Release
Indian cosmetics & toiletries market poised for strong value CAGR of 9.7% over 2018-2023, says GlobalData
A steady economic progress, backed by rising disposable income among consumers, is rendering robust growth to the Indian cosmetics & toiletries industry, which is expected to grow at a compound annual growth rate (CAGR) of 9.7% from INR915.5bn (US$13.3bn) in 2018 to INR1,457.5bn (US$20.0bn) in 2023, says GlobalData, a leading data and analytics company.
GlobalData’s latest report, ‘Country Profile: Cosmetics & Toiletries in India’, reveals that haircare products held the largest value share of 28.4%, followed by personal hygiene products, which accounted for a value share of 23.6% in 2018.
The company predicts the fragrances category to grow at the fastest value CAGR of 19.6% while make-up products to record a CAGR of 13.1% during 2018–2023.
Shivangi Gupta, Consumer Analyst at GlobalData, says: “Growing employment opportunities in the country has brought about lifestyle changes among consumers, especially in urban areas. These professionals in a quest to look good at their workplace are increasingly using cosmetics products, such as make-up, thus driving the growth of the industry.”
The report further points out that India’s value share in the APAC region, which stood at 8.1% in 2018, is expected to rise to 8.8% in 2023, mainly attributed to the projected slower growth of cosmetics & toiletries products among other leading countries in the region, such as Japan and Australia.
The per capita consumption (PCC) of cosmetics & toiletries, which is low in India compared to both APAC and global levels, is set to increase from 8.6 units in 2018 to 10 units in 2023.
Unilever, Procter & Gamble and Marico Ltd. were the leading market players in India while Parachute, Fair & Lovely, and Lifebuoy were the top brands. Convenience stores are the dominant distribution channel for the sales of cosmetics & toiletries products while private label products accounted for a meager penetration level of 1.3% by value in 2018, according to GlobalData.
Gupta concludes: “With consumers growing more concerned about the harmful effects of chemicals in cosmetics, the demand for products with claims such as ‘organic’ will cater to the growth of the industry in the coming years.”