Published on October 14, 2013

Indian Cosmetic Industry is a very wide sector which caters to all sections of the society with various products. In 1991, with the liberalization of the domestic sector, cosmetic industry started to flourish. It had a rapid growth and was growing at a CAGR of around 7.5% in 2006- 2008. Two things helped this sector, the purchasing power increased and brand and fashion awareness in the minds of the spenders.

Cosmetic Giants saw great potential in the growing market of India and started investing. Another thing that helped in the domestic cosmetic market was the growing fashion and film industry. Currently, the market size of the cosmetics industry is estimated at USD 1.5 billion and is expected to reach US 3 billion by the year 2014. The industry has attained a growth rate of 20% which has been almost double than compared to the growth rate of market in US or Europe. A market surge of 19% CAGR is anticipated till 2014.

According to the report by Associated Chambers of Commerce and Industry of India (ASSOCHAM) the growth of this industry can be attributed to the youth of the country. The survey which was done by ASSOCHAM stated that 65% of the teenagers claimed that around 75% of their expenditure has increased on branded cosmetics in the past 10 years.

Another growth spectrum is increasing use of cosmetic by men. According to reports Male-grooming is now a Rs. 38,000 crore market. This is the segment where the companies are currently targeting as it is a new and growing segment and possibilities of new entrants too. This sector clocked in a growth of 21% and is expected to reach Rs. 5270 crore in the next three years.

Majorly, this was one of the very few industries which were not affected by the depreciation of rupee. Overall, this industry is flourishing and foreseeing good growth.