Indian Cosmeceutical market to grow at 22% by 2025
The Cosmeceutical industry in India has witnessed a boom since its penetration in the country. The potential has always been high, especially in its volume, considering an ever-growing consumer demand. Furthermore, the sector continues to gallop and remains the fastest growing sector in India. Currently valued at $6.6 billion, the Indian Cosmeceutical market is expected to grow at a CAGR of 22% by 2025, according to the Ministry of Economy and Industry.
Currently, India accounts for a little over 1% of total global personal care, cosmetics, and Cosmeceutical market and is set to grow markedly over the next five years. The primary growth factors include increased disposable income, a huge % of young, elite millennial, and a rising middle-class population.
The factors driving demand for the cosmeceutical market in India
More consumers are now consciously choosing products that not only enhance their beauty and but can also nourish the skin and the body. With a growing number of global and domestic manufacturers entering the Indian beauty and personal care market, the trend has slowly been moving from superficial beauty to beauty from within.
Shift towards Natural Beauty
India, the land associated with Ayurveda and organic products, has witnessed a shift from artificial to organic products for beauty and wellness. In the quest to seek beauty from within, consumers in India are exclusively purchasing healthcare products and supplements which use natural ingredients. As the products are natural, there are minimal to none side effects and being bought and used in huge numbers by consumers.
The E-commerce boom
The Indian cosmeceutical industry is the most popular among the youth of India, constituting 60% of the total population. With the benefits and ease of e-commerce websites and apps, the younger demographic now use online channels to buy cosmetics. The growth of the internet and social media has provided even smaller companies the ability to reach out to a much wider customer base. According to a report by Forbes, internet users in India have reached 475 million as of 2018, and as a result, direct sales by e-commerce websites have taken over retail sales.
Increased Awareness
People using cosmetics regularly need to know which product or brand works for them. The decision is largely based on their skin type, lifestyle, budget and ingredients used in the products. To cater to their intellectual curiosity, cosmetic companies invest heavily in marketing their products and creating positive goodwill for their products. This investment to reach more consumers to achieve beauty from within has driven the demand for cosmetics.
Healthy Lifestyle
Currently, health is a prime factor for many individuals. However, aspects such as pollution, food adulteration, hectic lifestyle and stress can adversely affect wellbeing goals. With limited time available, people are switching to healthcare products which can contribute towards better health and protect from all negative factors. The desire to live a healthy lifestyle to look and feel great is one of the main reasons for the growing cosmeceutical market in India.
The cosmeceutical market is witnessing Indians spend a hefty amount on their well-being. According to a report by the World Bank, India’s per capita income increased from Rs 93,231 in 2016 to Rs 126,406 in 2019 (showing a 10% rise). With more disposable income at hand, the cosmetics market is experiencing a larger consumer share and higher spendings, contributing to expanded market growth in India.
Ajit Marathe,Co-founder, Director
Adroit Biomed
