By 2025, India will become one of the top-five global markets for cosmetics, finds a study. The market is expected to more than triple to $20 billion by then, growing at a CAGR of 25 per cent.
The global cosmetic market is growing at 4.3 per cent and is expected to be worth $450 billion by 2025. Growing from $6.5 billion to $20 billion, India will be one of the top-5 markets for cosmetics by 2025, finds RedSeer Consulting.
Realising the improving purchasing power, demand for enhanced products and increasing image consciousness of the Indian clientele, many international brands started establishing footprints in India in the past few years. These include Mac Cosmetics, Avon, Estée Lauder, L'Oreal, and Willa professionals.
By 2020, a pool of luxury brands such as Labiocos, Bodyography, and Victoria Secret are expected to clamour for the Indian consumer wallet and mindshare. Social media and favourable demographics are playing an important role in spreading awareness about cosmetics products, not only in metros but also in tier-1 and 2 cities.
While relaunching German brand Be-Yu in Indian last year, Sascha Reinhard, its managing partner, had said, “Indian cosmetic market has evolved over these years. At that time the market was not mature enough for BeYu. Lipsticks were sold at Rs 400 and now the average price has gone up to Rs 800”.
Herbal cosmetics products too are driving growth due to increasing adoption. The segment is expected to grow at 15 per cent as people become more aware of the possible perils due to consistent use of chemical formulations.
“Cosmetics is one of the fastest growing segment in the online space as the channel provides women from cities beyond tier II easy access to a large portfolio of products,” said Ujjawal Chaudhry, engagement manager, e-tailing, RedSeer.