Indian skin care market stood at $1.6 billion in the year 2017, and as per market research companies in India, it is expected to grow at 9% CAGR rate and to reach $ 2.7 billion by 2023. This growth is anticipated because of the rise in disposable income, changing lifestyle, increasing affordability, growing awareness and increase in skin care product demand across all age groups. The boom of e-commerce business is also leading us to a new phase. Brands like Nykaa and Purple are playing an important role in this rapid growth of the skin care market. It is now easy to imagine high-level growth in this market for international brands. As quoted by Shiseido India’s Managing Director, Benjamin Suzuki, “This growth can be attributed to the increased initiatives by both domestic and international beauty players who are ensuring that country is aligned with the global products and services offered.”
But market condition and features are rapidly changing due to various norms and regulations. Along with that, the demand and idea of the consumer are also changing. The brands who want to seek their way into Indian market need to create awareness about their brand and along with that, they also have to be aware of the Indian market.
The revenue in this industry comes majorly from the women population. Over the years, the grooming and skincare products for men also witnessed a steep rise in demand. However, the demand for skin lightening products is there in both men and women because consumer in India has a more intensive skincare regime.
As people are switching to the cosmeceutical, natural and organic products instead of chemical-based products, India regulation around this has also become strict. As of April 2013, compulsory registration of imported cosmetic products is required to sell products in the Indian market. These products need to be registered with the Central Drugs Standard Control Organization (CDSCO) which is the Indian licensing authority within the Drug Controller General of India in the Ministry of Health welfare and Government of India. All this can be done with the help of consulting companies. The cost of the product is decided in terms of time, money and administrative requirement of the international companies to sell their products in India.
Global industries are now focusing on products such as free radical fighting supplements, cosmeceuticals and probiotic skincare. Another product on which manufacturers should focus on is nanotechnology. These products enable micro-particles in the skin products to penetrate more deeply into the skin. If we follow the present trend, then these are the products which in high demand in the Indian market. India offers a promising market for aspiring foreign investors who want to enter the Indian skin care market.
Conclusion
The biggest existing players in the Indian market are L’Oreal, Hindustan Unilever, and Colgate Palmolive. Top notch international brands like Maybelline New York, Christian Dior, Estee Lauder, Max Mara, Avon, Burberry, Bobbi Brown, Calvin Klein, etc. are interested in the raging market in India. They want to establish their stronghold beforehand in order to reap the benefits during the very early stages. The Merger and acquisitions consulting firms in India will provide proper real-time insights regarding the
existing skincare brands in India so that the international brands can take the right step to enter the market. Grow your business with the growth of the Indian economy.
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