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The market size of India's beauty, cosmetic and grooming market will touch 20 billion dollars by 2025 from the current level of 6.5 billion dollars on the back of rise in disposable income of middle class and more and more people aspiring to live good life and look good, industry body ASSOCHAM said.
The industry has mainly been driven by improved purchasing power and rising aspiration among the lower strata of the society while and industry players spending are coming out with products and pricing to suit consumes across difference levels of purchasing power, the ASSOCHAM latest study.
The rural population too is joining the mainstream with improvement in linkages with the cities by roads, telecommunication and the firms reaching out to the people in villages and small towns. That is how it should be, said Secretary General of the ASSOCHAM Mr D S Rawat.
The consumption pattern of cosmetics among teenagers went up substantially between 2005 and 2015 because of increasing awareness and desire to look good. In fact, they are among the fastest growing segment for the manufacturers of a range of products including body sprays, Over 68% of young adults feel that using grooming products boost their confidence.
About 62% of young consumers in big cities prefer to buy online beauty and grooming products whereas, 45% of consumers tend to buy cosmetic, apparel items from any shop of their convenience rather than a single shop. Both quality and value for money is being sought by consumers.
Brands such as L'oreal, Lakme , Maybellene, Nivea and Color Bar are being pushed as mass market products and focus on younger women and women with lower buying power, noted the paper.While these are little expensive products, the price barriers are also being broken both by the consumers and the manufacturers.
The herbal cosmetics industry is also driving growth in the beauty business in India and is expected to grow at a rate of 12%. The Indian cosmetics industry has a plethora of herbal cosmetic brands like Forest Essentials, Biotique, Himalaya, Blossom Kochhar, VLCC, Dabur and Lotus and many more.
The flourshing Indian fashion/ film industry is also fueling growth into the cosmetic industry in India by making Indians to relaize the importance of having good looks and appearance
The men's grooming and personal care market in India is outpacing the personal care market at large for growth. Additionally, as more Indian men are looking to remain competitive in the workforce, they are seeking products to help them maintain a youthful look.
More male Indian icons, such as Hindi actors and cricket players, are working with beauty and personal care brands to encourage the use of personal care product by men.
There is a rising aspiration among Indian men to look better groomed, which has led to the Indian men's grooming market's rapid growth of more than 42% in the last 5 years. The study further showed that this growth is faster than the growth rate of the total personal care and beauty industry in India.
Interestingly, men who fall in the age group of 18 to 25, spend more money on grooming and personal care products than women in India. The aspirations and requirements of today's young Indian men are rapidly evolving. With a surge in disposable income, men are becoming more discerning and indulgent. In an evolving trend in India, men are beginning to look at innovative grooming and personal care products created specifically for them.
Due to changing demographics and lifestyles, deeper consumer pockets, rising media exposure, greater product choice, growth in retail segment and wider availability are the reasons for sharp rising demand of cosmetics among India men, especially the youth. Men in smaller towns are displaying greater desire for grooming, especially in the whitening and fairness segment, highlighted the study.
There has been sharp increase in number of beauty salon and spa in the country. It is estimated that about 25-30% of total salon business come from men's treatment.
Key drivers behind recent market growth are -
Rising Disposable income
Competitive workforce Environment
increasingly complex grooming routines
More Indian icons, such as Hindi actors and cricket players
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