India maintained its tag of ‘one of the fastest growing consumer markets’ across the globe, turning from an unorganized informal economy to an organized retail market in major Indian cities and tier-II towns in the country. The personal care industry of India is one of the fastest growing consumer products sectors in the country with a strong potential growth for the US-based companies. The sector has shown a strong growth prospect, owing to the rising stocking of cosmetics, cohesive government policies, and increasing shelf space in retail stores and boutiques in India. As per Telecom Regulatory Authority of India (TRAI) 2018, the high penetration of smartphones and internet that exists on the fingertips of nearly 560 million Indians, have been driving the cosmetics and personal care industry in India. As per Invest India, the rural India accounts for over 40.0% of the consumption in major FMCG industry, such as fabric care, personal care, and hot beverages. In urban areas, home, and personal care products, such as household care, skin care, and feminine hygiene will continue to grow with the attractive valuations in near future. This will substantially rise the imports of cosmetics and personal care products in India. 

Scenario of Indian Personal care ingredients industry 

As per the OMR Analysis, India will grow at the fastest CAGR in Asia-Pacific personal care industry, even after the impact of the COVID-19 pandemic. There are several companies in India that focusses on manufacturing performance products and specialty chemicals for the personal and home care industry. One such market player is Galaxy Surfactants Ltd. that has over 100 products and their variants, with six manufacturing sites located in India, one in Egypt, and one in the US. Moreover, there are various trade shows and exhibitions that take place regularly across the country to inspire new product launches and innovation in personal care ingredients. Such trade shows and exhibitions bring various personal care ingredients suppliers at one platform where the suppliers display the latest cosmetic ingredients, personal care ingredients, homecare ingredients which are being used in the formulation of the products. This, in turn, presents new expansion opportunities for the personal care ingredient market across the country.

Personal Care Trade shows/exhibition held in India

Import of cosmetics and personal care products 

India entertains the import of cosmetics only through the specified ports, which includes Mumbai, Chennai, Kolkata, and Cochin sea ports, and through airports of Chennai, Kolkata, Delhi, Mumbai, Bengaluru, and Ahmedabad. Moreover, India has imposed a ban on the animal testing for cosmetics in 2013, and the same provisions are relevant for all cosmetics products imported into India. In 2020, UK, China, France, Germany, and the US are the major suppliers of cosmetics and personal care products in India with imports gradually increasing from Malaysia, Thailand, Japan, Hong Kong, and South Africa, and Israel.

The major cosmetics items imported by India includes long-lasting lipsticks, eye make-up, fragrances, color cosmetics, liquid lip color, and other specialized skincare products, such as anti-blemish, anti-ageing/anti-wrinkle, and skin whitening creams, professional hair-care, nail colors and nail care products and artificial nails, hair coloring and styling products, and preparations for shaving creams and skin care products for men. Moreover, the sun care products, such as sun blocks and sun protection products are continuously in demand in India. Likewise, the demand for slimming treatments, body treatments, and massage and bath products that are used in spas and professional skincare setups are increasing. The imports of the organic personal care and cosmetics products is on the rise, especially in the professional segment.

Distribution Channel and Marketing 

In the last decade, India emerged as an emerging economy with immense growth prospect in modern organized retail channels, such as hypermarkets, department stores, supermarkets, specialty store chains, and shopping malls. This further includes the direct sales and a highly competitive e-commerce industry for cosmetic brands. Large format retailers, supermarkets, and department stores are restructuring to attract interest of cosmetics brands by earmarking more floor space for cosmetic brands. Likewise, the cosmetics brands are continuously innovating on their selling methods. An increasing number of cosmetics companies are dealing with consumers directly through exclusive counters in department stores chains such as Lifestyle, and Shoppers Stop, and malls featuring their own beauty consultants.

Personal care products Industry news 

• In March 2020, Hindustan Unilever Limited (HUL) signed an agreement with Glenmark Pharmaceuticals Ltd. to acquire its intimate hygiene brand VWash. Through this acquisition, HUL has planned to enter the niche intimate hygiene sector. This proposed acquisition is in line with HUL’s plans to enter the fast-growing segments of the future in the premium beauty and personal care category.
• In December 2019, Wipro Consumer Care and Lighting (WCCL), acquired Canway Corp., a South Africa-based personal care products manufacturer, to enter the country with 58 million consumer bases. Canway Corp, a Durban-based company is $21 million personal care company having portfolio in category, such as hand cream, bath and shower, body spray and kids' products and markets mass brands such as Oh So Heavenly, Iwori and IQ. Moreover, the company already has a small presence in South African market with its flagship soap brand Santoor. The company plans to evaluate its launch in India, after this deal, in terms of appealing packaging, perfume parameters and gifting by February.

Recent funding rounds in the Indian personal care products industry (2020)

Personal care products Market players Outlook

The Indian personal care products market, which was typically a stronghold of a few major domestic players, such as Lakme, has seen a lot of foreign brands enter the market over the last two decades. There is a continuous growth trend in the cosmetics market reflecting an increasing demand for cosmetics products in India. Moreover, the premium global brands are gaining momentum as the Indian consumers are moving from the adoption of functional items to more advanced and specialized cosmetic products. Many international brands, such as Revlon (the first international cosmetics brand to enter India in the mid-nineties), Cartier, Christian Dior, Avon, Burberrys, Calvin Klein, Estee Lauder, Coty, Oriflame, L’Oreal, Elizabeth Arden, Lancome, Chambor, Yardley, Rochas, Yves St. Laurent, Tommy Hilfiger, Wella, Schwarzkopf, Escada, Nina Ricci, Max factor, Max Mara, Shiseido, Body Shop, Maybelline New York, MAC, among others have been present in India from considerable time.