22 Oct 2020
Posted in Consumer
Rise in disposable income to drive cosmetics and toiletries industry in India, says GlobalData
Increasing number of working women with rising disposable income is set to drive the Indian cosmetics and toiletries industry from INR1.06bn (US$15.1bn) in 2019 to INR1.72bn (US$22.4bn) in 2024, at a compound annual growth rate (CAGR) of 10.2%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘India Cosmetics & Toiletries – Market Assessment and Forecasts to 2024’, reveals that haircare was the largest sector with value sales of INR308.7bn (US$4.38bn) in 2019. However, the fragrances sector is forecast to register the fastest value growth at a CAGR of 18.9%, during 2019–2024. It will be followed by make-up and feminine hygiene with CAGRs of 12.7% and 11.0%, respectively.
Anchal Bisht, Consumer Analyst at GlobalData, says: “With changing consumer lifestyle and standards of living, Indian consumers are opting for premium personal grooming products – a trend likely to fuel demand for high quality cosmetics and toiletries industry in the country.”
Convenience stores were the leading distribution channel in the Indian cosmetics and toiletries industry, with a value share of 47.4% in 2019, trailed at a distance by the hypermarkets and supermarkets, and department stores.
Unilever, L`Oreal S.A. and Procter & Gamble were the top three players in the Indian cosmetics and toiletries industry in 2019. Private labels accounted for 1.1% of the overall cosmetics and toiletries industry in the country.
Ms Bisht concludes: “Indian consumers are significantly influenced by western culture, which is driving the popularity of international brands, thus benefiting the sector expansion during the period 2019–2024.”