INDIA COSMETIC MARKET

India cosmetic market is expected to grow at a CAGR of 10.2% during the forecast period owing to rising income and expanding middle-class along with innovations in the beauty industry.

Major India Cosmetic Market Drivers and Emerging Trends

Economic growth and rising disposable income are adding more and more people to the middle-class, leading to a rise in spending on beauty products and personal grooming. The World Bank indicates that in 2022 the consumer expenditure in the country surged to USD 2.4 trillion from just USD 1.9 trillion four years prior which contributes to growing market demand. The rise in disposable income is driving the need for cosmetics which encompasses skincare and makeup items, while growing purchasing power stands out as a fundamental factor affecting India cosmetic market size expansion.

Rising affluence within the middle class enhances personal care expenditures which in turn significantly supports the overall market expansion. With consumers looking to improve their looks and overall wellness, the beauty sector benefits from this trend which makes India a highly promising market for cosmetic companies. The lifestyle changes seen in millennials and younger consumers largely influenced by social media are generating greater interest in color cosmetics in India. Moreover, gen z and millennials consumers are seeking out luxury beauty products driven by their need for regular grooming and to maintain a fashionable appearance.

The other factor driving India cosmetic market industry growth is the surge in product innovation along with the increasing popularity of organic cosmetics. Consumers become more concerned about their health thereby there is a rising demand for organic products which reflects their preference for natural options. Beauty companies in the country are responding to this trend with creative formulations that utilize organic components. Innovative products and the organic movement not only meet the changing consumer needs but also puts the market for significant growth by providing a wide array of health-oriented beauty products.

Furthermore, the rise in internet connectivity has led to a notable increase in the online cosmetics market in India over the past few years. India cosmetic market analysis observes that consumers are finding products through marketing campaigns on different social media channels including Facebook and Instagram. Before making a purchase usually consumers take into account product reviews and recommendations from other buyers. They also tend to consider celebrity endorsements and look into comments on social media.

However, changes in regulatory standards can complicate product innovation which leads to significant compliance challenges and hinders market growth. Adjusting to changing regulations like labeling requirements and ingredient limitations requires a considerable investment of time and resources.

The skin care segment is leading the market based on the product type largely due to the growing recognition regarding the importance of taking care of the skin which prompts Indian consumers to actively looking for effective skin care products and sun protection. There has been a notable surge in demand for products that offer UV protection and natural ingredients. Factors like shifting lifestyles and rising knowledge regarding UV radiation’s negative effects are contributing to this trend. Beauty companies are introducing innovative products and marketing approaches to address various skincare demands which plays a crucial role in enhancing market growth.

The market can be divided into offline and online segments based on the distribution channels, with the offline category leading the market. It consists of various kinds of physical stores ranging from department stores, specialty stores, among others.

Specialty stores are crucial as they provide a dedicated space for consumers to discover and purchase a wide array of beauty products. These stores create an engaging experience which allows customers to discover multiple brands and various products under one roof. Additionally, these stores frequently provide opportunities for beauty consultations and product demonstrations which enhances the customer experience during shopping. By continuously adjusting to emerging beauty trends, these stores significantly enhance their presence in the dynamic India cosmetic market.

Nonetheless, online retailing is observing substantial growth as it provides a space to showcase various products which enables brands to establish their identities and effectively promote new launches to consumers. Brands are actively seeking endorsements from influencers to engage young consumers.

Online platforms also offer a convenient way for consumers to purchase products from home which allows them to avoid crowds typically found in physical stores. This offers customers the convenience of shopping and exploring products around the clock from their homes. Furthermore, these platforms enable cosmetic brands to quickly adapt to e-commerce which boosts their visibility in diverse urban and rural markets.

The market is divided by region into South, East, West, and North India. South India leads the market as it is crucial in shaping the cosmetics landscape due to various influencing factors. Urban hubs in the region including Bangalore and Hyderabad feature a large and varied consumer base with growing purchasing power. The region is also recognized for its strong interest in beauty and personal care which fuels a significant demand for various cosmetic products. The value placed on appearance within the culture also helps fuel a thriving cosmetic market while the climate boosts the need for skincare items.

Top Market Players

Some key players within the market include Marico Limited, Dabur India, Emami Limited, among others.

Segments covered in the Report:

The India Cosmetic Market has been segmented on the basis of product and distribution channel. Based on the product, the market is segmented into skin care, hair care, makeup, fragrance, others. Based on the distribution channel, the market is segmented into offline, online.

Report Coverage	Details
Market Revenues (2023)	USD Million
Market Base Year	2023
Market Forecast Period	2024-2031
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Product, By Distribution Channel
Regional Coverage	India
Companies Profiled	Marico Limited, Dabur India, Emami Limited, among others; a total of 3 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

India Cosmetic Market by Product

• • Skin Care
  • Hair Care
  • Makeup
  • Fragrance
  • Others

India Cosmetic Market by Distribution Channel

• • Offline
  • Online

India Cosmetic Market Leading players (Option 1: Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Marico Limited
  • Dabur India
  • Emami Limited