November 14, 2012Procurement Consulting – Brickwork Sourcing

The Indian Makeover for the Cosmetics Industry The Indian Makeover for the Cosmetics Industry

Brickwork India (Confidential)

Brickwork Sourcing

The market size of the cosmetics industry in India is estimated to be worth US$1.5 billion

It is projected to reach almost US$3 billion by 2014

The industry has been growing at an annual rate of almost 20%

A market surge of 19% Compound Annual Growth Rate (CAGR) is anticipated by 2014

The Indian cosmetic industry's growth is twice as fast as that of the United States or Europe

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The Global Cosmetic Industry and India

For 65% of the teenagers in India, their expenditure on branded cosmetics has increased 75% in the past 10 years

Indian men's personal-care segment is estimated at over $200 US$ million

The expenditure of the male segment has reported a rise of about 80% in the past decade

India imports cosmetics, beauty products and intermediate raw materials such as essential oils worth $400 US$ million per year

Growth of many brands such as L'Oréal, Maybellene, Lakme, etc. in India is due to increased awareness about brands and fashion

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India and the Cosmetic Industry

Improved purchasing power and rising fashion consciousness among the population

Increased levels of brand advertising have captured the imagination and awareness of the people

The higher spending power of Indian women owing to them being placed at better paying jobs since the last decade

Impressions created on the youth by the Indian film industry over the importance of grooming and being fashionable

The changing mindset of the people has encouraged a much lavish approach to expenditure

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Major Driving Factors

The cosmetic market offers products ranging from a mere US$2 to about US$1000

The higher-end market range is considered to be within US$20 to US$200

The middle market consumes products that are priced below US$20

The untapped Indian rural market comprises of nearly 70% of the Indian population, i.e. nearly 828 million people

Cosmetic giants, such as L'Oréal, have set up research facilities to benefit from the overall market

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Market Segments

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9 April 2023

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