Published on April 28, 2014

In recent past years the Indian cosmetic industry which consist rite from skin care to colour cosmetics and fragrances to oral care categories has outperformed the leading cosmetic market of the world in terms of growth. Amid the rising beauty perception the Indian cosmetic market has started witnessing unbridled growth driven by enhanced spending power and rising consumer awareness about cosmetic products.

According to the sources, the market size of the cosmetic industry in India has been currently estimated to be worth USD 1.5 billion and by this year 2014 it is anticipated to reach almost USD 3 billion. The Indian cosmetic industry have been rising at an annual rate of approximately 20% which is noted twice as fast as that of the International market and till the year 2014, the surge of 19% CAGR has been projected.

In the recent years, changes in the outlook have encouraged a sumptuous loom to an outflow on cosmetics which has brought success for both India and its investors. According to the survey done by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), in past 10 years the expenditure on branded cosmetics have been increased by 75% which has been claimed by nearly 65% of teenagers. The augmented brand consciousnesses have also fostered the growth of many brands such as LOreal, Maybellene, Lakme, etc.

Over the last couple of years, the Indian cosmetic industry has been witnessing a rapid growth in the cosmetic market and according to the market research analyst, cosmetic sector shave been driven by the rising purchasing power and fashion consciousness. As per the recent cosmetics business market analysis reveals that many international companies are now outsourcing cosmetics to India and that the cosmetics market in India is growing at 15-20% annually.

Beauty product manufacturers in India have mostly been catering to the great demand for cosmetics and toiletries that fall into the low- or medium-priced categories as the greatest demand in India always revolve around economically priced products. The growth rate in the cosmetics market reflects increasing demand for beauty care products in India. Fragrance compounds and consumer products showed strong growth with the rise in net income of nearly 20 percentages in the year 2013.

In past few years, the highest growth of about 490 billion have been witnessed by the Indian wellness industry such as slimming products and services, fitness services and equipment and cosmetic treatments and by the year 2015 as per the market players the cosmetic industry consisting of salons, cosmetic treatment centers and cosmetic products is projected to reach over 400 million.