The India Skincare market is expected
to grow at a robust growth rate owing to growing customer awareness regarding
variety of skin care products, increasing number of working women, rising
disposable income, and increasing demand for organic products.
India Skincare Market Scope
Skincare refers to the
practice of maintenance and enhancement of one's appearance with the help
different skin care products, such as creams, lotions, and others. Skincare
is essential for facial and body care. In addition, there is a growing demand
for personal care products owing to the increase in the number of working women,
as they can afford these products easily. The growth of online retail in
India's skin care industry is being attributed to the emergence of online
brands such as Nykaa and Purplle as well as rising internet usage. The Indian
skin care market is growing because of increased customer demand for skin care
products, which is also driving manufacturers to launch new products.
India Skincare Market Overview
In India, women are becoming
more conscious about their appearance, not only in terms of tone but also in terms of
radiance, diminished wrinkles, etc., which is driving up demand for various
skin care products. Furthermore, companies are emphasizing on launching various
marketing campaigns that target particular types of customers for their
products. Skincare products are becoming popular in both small cities and rural
India. A
lot of customers prefer going to skin therapy centers, spas, and dermatologists
for skin treatment methods, which has resulted in significant demand for
professional skin care products.
Skincare accounts for about
45% of the personal care market. Anti-wrinkle, anti-blemish, and anti-tanning
creams are some of the most popular skincare products. Moreover, the increasing
trend for clear, flawless skin among Indian consumers is encouraging them to
purchase latest skincare products. The demand for premium products is growing
at a faster rate in India as Indian consumers are shifting their preferences from
functional products toward premium cosmetic products. Although the market is
highly saturated, it is still one of the best investments for market players
due to increasing demand of skincare products.
India Skincare Market Drivers
The primary source of traffic
for the websites of new companies of skincare products is social media.
Social media platforms are primarily used by newly established companies
to gain popularity. It is one of the most crucial resources for companies for
interacting with their target market. Customers are altering their approach to
skincare products because of access to social media influencers and availability
of personal care content online. Social media has made it
possible for ordinary individuals to create their own brands by engaging
with innovative content. For instance, a significant part of
Mamaearth's marketing strategy includes social media websites. The company has a
presence on several social media platforms, such as Facebook, Twitter, and
Instagram. Mamaearth is known for using influencer marketing along with using
hashtags on these social media platforms. Furthermore, companies have
realized they can use social media networks for promotion because of their
frequent usage among consumers. Thus, with the increasing influence of social
media and the internet, consumers are becoming more aware of the benefits and
importance of skincare. This has led to an increase in demand for skincare
products.
The increasing number of
working women are willing to spend money on skincare products to improve their appearance.
Additionally, the launch of organic and innovative range of women's cosmetics
encourages them to purchase more skincare products. Thus, these factors are
expected to lead to a significant increase in demand for skincare products.
India Skincare Market Trends
Indian consumers now view
skincare products as necessary products for regular wellbeing. Rising consumer
awareness, purchasing power, and accessibility, etc. are some of the factors
supporting this trend. Growing demand for skincare products is also influenced
by product developments and changing perception of consumers. Sunscreens
are no longer used as just creams these days. For instance, in 2022, mCaffeine
launched Coffee Powder Sunscreen, which is India’s first powder sunscreen. The
sunscreen offers benefits of coffee and caffeine, and they provide eight hours
protection from harmful UVA & UVB rays. The company
has also launched Coffee Sunscreen Lotion along with it. Sprays,
creams, tinted moisturizers, and other sunscreen products are some of the
product ranges offered in this market. Thus, consumers can anticipate more
changes in the skincare market owing to the introduction of new products and
higher consumer demand.
As more Indian consumers are adopting
western lifestyles, there has been a shift toward more sophisticated skincare
routines, including the use of multiple products. Ayurvedic products, such as aloe
vera in skin care products or plant-sourced Vitamin E in serums for various
skin types, are being preferred by customers. For instance, in 2020 Emami
launched organic aloe vera gel under BoroPlus brand. Moreover, increasing awareness
of vegan skincare products that contain ingredients which are good for skin,
such as plant-based salicylic acid for skin prone to acne, is further driving
the skincare market in the country.
India Skincare Market
Challenges
One of the biggest challenges
faced by the Indian skincare market is the price sensitivity of consumers. A
large section of the population is highly price-conscious and tends to opt for
affordable products, even if it means compromising on quality. Many
consumers in India do not have a good understanding of skincare and the
importance of using quality products. This lack of awareness can lead to consumers
using products that may not be suitable for their skin type or may cause harm
in the long run.
The Indian skincare market is
not easy to penetrate particularly in well-established segments. The cost of
retail establishment is very high in India and these platforms are limited to
premium stores. The high manufacturing cost of skincare has also become a challenge
for India skincare market.
Market Recent Developments
- In 2023, Oriflame India launched
its first range of ‘cosmeceutical’ products named ‘NovAge Proceuticals’,
therefore expanding its skincare offering for Indian Market. The
new line of cosmetics and beauty products is intended to address the individual
skin problems and concerns of its customers.
- In 2022, Hindustan Unilever
Limited acquired 51% equity stake of OZiva (Zywie Ventures Private Limited)
which is a plant-based consumer wellness brand.
- In 2022, L'Oreal India relaunched
its beauty brand, Lancôme in India. The company will offer skincare, makeup,
and fragrances under the brand Lancôme in India. Through its high-end beauty
brand Lancôme, the company is also introducing well-known products, such as
Advanced Génifique Youth Activating Serum, Teint Idôle Ultra Wear Foundation,
and La Vie Est Belle Fragrance.
- In 2021, Emami Limited acquired
a majority of its stake in Brillare Sciences, which is a beauty care company
offering products in hair & body care, skin, for professional salon and
home use.
- In 2020, Emami Limited launched a new product, Aloe Vera Gel, under its Boroplus
brand. With this launch, Emami hopes to strengthen its position in the nation's
booming Ayurveda market.
- In 2020, Hindustan Unilever
Limited launched a new brand called Nature Protect in the naturals segment.
Market Opportunities
- Consumers are shifting toward
organic skin care products due to the rising demand for ingredients that are
naturally derived, which is anticipated to fuel market development during the forecast
period. Another factor accelerating the growth of the market is the increasing
awareness of the negative effects of chemicals and synthetic products. Most of
the customers favor purchasing products labelled as natural or organic, which
stimulates market expansion. Thus, owing to increasing demand for products
free of parabens, preservatives, and harmful ingredients, the demand for organic
skincare products will increase, hence fueling the overall skincare market
growth.
- Consumers are becoming
more conscious about the negative effects of pollution on their skin. Moreover,
issues such as pollution and poor water conditions are driving up the demand
for anti-aging products. People spend large amount of money and time for
purchasing anti-aging products. Companies invest a lot of time and resources
into developing anti-aging products. Thus, companies are implementing
innovative strategies such as product innovations, mergers, and acquisitions to
improve their positions in skincare market.