The Indian skincare sector is expected to grow from INR178.8bn (US$2.5bn) in 2019 to INR294bn (US$3.8bn) by 2024, at a compound annual growth rate (CAGR) of 10.5%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘India Skincare – Market Assessment and Forecasts to 2024’, reveals that the sector is majorly driven by growth in the facial care category, which is forecast to register the fastest CAGR of 10.7% during 2019–2024. The category is closely followed by ‘body care’, which is expected to record a CAGR of 10.2% during the next five years.
Anchal Bisht, Consumer Analyst at GlobalData, says: “Growing penetration of international brands in the country along with increasing inclination for organic and natural skincare formulations will benefit the sales of skincare products in India. Furthermore, exposure to pollution and the ensuing need to maintain a healthy skin is necessitating consumers to look for effective skincare products.”
The value share of India in the global skincare sector is expected to increase from 1.9% in 2019 to 2.3% by 2024 while the country’s share at regional level is expected to increase from 3.6% in 2019 to 4% by 2024.
With strong retail presence, convenience stores continue to dominate the Indian skincare sector. It accounted for the majority share of 38.7% in 2019 followed by department stores with a share of 17.8%. Convenience stores also held the majority share across all categories in the same year.
Unilever, Amway Corporation and L’Oréal S.A. are the top three companies in the Indian skincare sector. Fair & Lovely, Pond’s and Garnier were the most popular brands in the country in 2019. Private labels held a 1.4% share of the overall skincare sales in 2019, with highest penetration in depilatories category.
Bisht concludes: “The entry of international brands has increased the exposure of Indian consumers to premium skincare products. Also, increasing brand awareness among the affluent and the aspirational urban consumers is set to drive the growth of skincare market in the country. Consumers are adopting sophisticated skincare routines and are including face masks and toners in their everyday use which is expected to contribute towards the growth of Indian skincare sector.”