Changing lifestyles, and growing awareness is contributing to a significant development in India’s cosmetic industry. India is ranked fourth globally for generating the highest revenue from the beauty and personal care market in 2021. The cosmetics market worldwide is controlled by a handful of conglomerates like Unilever, Procter & Gamble, and L’Oréal. Although these were immensely successful in India, domestic counterparts have an equal footing, with newer, organic brands entering the market. However, the international brands were not able to fulfil the demand for products suitable for Indian skin types which created an opportunity for local companies such as MamaEarth, Khadi Essentials Plum, and SoulTree to promote their homemade cosmetics and personal care products.

History and trade of the beauty and personal care market

Cosmetic products and their application have been documented since the Indus valley culture in India. Before the turn of the century, beauty products, including skincare and hair care were mostly homemade, using herbs and ingredients available locally in India. Besides, some beauty practices were based on routine and other practices were dependent on the seasons. In Ayurveda, Tailams (oils) and Ghritas (clarified butter or ghee) were used for facial beautification.
With globalization, beauty and personal care products from other countries became available in India, increasing accessibility and affordability. One example is the replacement of Shikakai (a powder made from parts of a dry shrub) with shampoos containing surfactants. Ironically, the word shampoo comes from the Hindi word Champo (meaning to press, knead and soothe) borrowed during the colonial era.

Online beauty and personal care market

The COVID-19 pandemic boosted online discovery and sales of a fresh generation of cosmetic products due to the closure of supermarkets, department stores, hypermarkets, and salons. Similar to China, India’s consumer relocation to online channels has benefited the DTC (direct-to-consumer) brands.

Moreover, consumers preferred the flexibility and safety of online purchasing and home delivery. Thus, e-commerce surged the beauty industry. For the first time, the market size achieved the largest rise for online beauty and personal care. Other factors that contributed to the expansion of the beauty and personal care market were the trends towards the use of clean and environmentally friendly products. This in turn increased concern about personal grooming driving demand for beauty and skincare business, and the rise of social commerce.

Content Credit: Statistica | Photo Credit: Unsplash | Edited by Simrita Dhillon