Indian cosmetics exhibit double-digit growth

19 September 2007 07:13  [Source: ICIS news]

NEW YORK (ICIS news)--India has become one of the fastest growing cosmetic and toiletry (C&T) markets worldwide with a growth rate of 13%, an industry analyst said late on Tuesday.

“India has the lowest per capita spending for C&T at $3.40/person last year but the country’s growing preference for Western lifestyle in addition to increased disposable income has made India a big market opportunity for multinational cosmetic companies,” Carrie Mellage, director of consumer products practice for Kline & Company’s research division, said.

Speaking at this year’s HBA (Health and Beauty America) Expo held in New York, Mellage estimated India’s C&T market last year at $3.7bn at manufacturer’s level.

“Other toiletries such as soaps, deodorants and shaving products hold the largest category at 39.6%. Fragrances, with market share of 2.3% showed the fastest growth while the oral care segment, accounting for 13.7% of the Indian C&T market, exhibited the slowest growth last year,” said Mellage.

Natural cosmetic ingredients continue to dominate the market especially with the use of talcum powders in deodorants and perspirants, and oils in hair styling, said Mellage,

“Indian consumers, however, are starting to move away from traditional talcum powder toward more modern deodorants and antiperspirants. Marketers are now expected to rise to the occasion with innovative products and revamped pricing strategies to help garner a significant share of this segment of the market,” Mellage added.

Over 50% of C&T sales in India are held by foreign marketers. Skin care, fragrances and hair care segments are dominated by multinational players such as Unilever, Colgate-Palmolive, Procter & Gamble, L’Oreal and Johnson & Johnson.

The annual cosmetic show started on Tuesday and ends on Thursday.

By: Doris de Guzman
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