The grooming and cosmetic market in Indian to touch $20 billion by 2025
With the improved purchasing power and aspirations among the lower-middle and middle-income groups in the country, brand consciousness and sense of grooming are witnessing a phenomenal rise. As a result of this, the industry players are focusing on bringing out products and pricing to suit consumers across different levels of purchasing power. Indian cosmetic market is also growing at a great speed.
According to a recent study by Associated Chamber of Commerce and Industries (ASSOCHAM), India’s beauty, cosmetic and grooming market will rise to 20 billion dollars by 2025 from the current level of 6.5 billion dollars on the back of rising disposable income of the aspiring middle class. This particular section of society is becoming increasingly concerned about not only a good and healthy life but also wants to look well-groomed.
The rural population has also joined the rally as rural areas are well connected with the cities by roads, telecommunication, and the firms reaching out to the people in villages and small towns.
The consumption pattern of cosmetics among teenagers grew rapidly between 2005 and 2015 because of increasing awareness and desire to look good. The teenage segment has emerged to be the fastest-growing segment for the manufacturers of a range of products including perfumed body sprays and deodorants. Over 68% of young adults feel that using grooming products helps in boosting their confidence.
Among the key factors which influence this trend include rising disposable income, competitive workforce environment, increasingly complex grooming routines, social media, selfie mania, growth in the number of Indian icons such as film and television actors, and sportspersons, young population.
There is a rising aspiration among Indian men to look better groomed as well, which has led to the Indian men’s grooming market’s rapid growth of more than 42% in the last 5 years. The study further showed that this growth is faster than the growth rate of the total personal care and beauty industry in India.
More male Indian icons are endorsing beauty and personal care brands to encourage the use of personal care products by men.
The men’s grooming and personal care market in India is outpacing the personal care market at large for growth. Moreover, as more Indian men are looking to remain competitive in the workforce, they are seeking products to help them maintain a youthful look.
Interestingly, men who fall in the age group of 18 to 25, spend more money on personal care products than women in India. With a rise in disposable income, men are becoming more discerning and generous. In an evolving trend in India, men are beginning to look at innovative grooming and personal care products created specifically for them.
Brands such as Lakme, L’oreal, Nivea, Maybelline, and Color Bar are being pushed as mass-market products and focus on young women and middle-aged women with lower purchasing power noted the paper. While these are little expensive products, the price barriers are also being broken both by the consumers and the manufacturers. The premium brands in the segment are also trying to expand the consumer base by coming up with a better pricing strategy.
The herbal cosmetics industry is not lagging behind in the race; it is driving growth in the Indian beauty business. The herbal cosmetics industry is estimated to grow at a rate of 12%. The Indian cosmetics industry has a number of herbal cosmetic brands such as Dabur, Himalaya, Forest Essentials, Biotique, VLCC, Blossom Kochhar, and Lotus.
The number of beauty salons and spas in the country has increased sharply in recent years. It is estimated that about 25-30% of the total salon business comes from men’s treatment.
About 62% of young consumers in metros and big cities prefer to buy online beauty and grooming products whereas, 45% of consumers tend to buy cosmetic, apparel items from any shop of their convenience rather than a single shop: further reveals the study.