Indian Cosmetics Market Up 7.5%

The Indian cosmetic Industry has witnessed rapid growth in the last couple of years, growing at a CAGR of around 7.5% between 2006 and 2008, according to Research and Markets. With improving purchasing power and increasing fashion consciousness, the industry is expected to maintain the growth momentum (with marginal slowdown due to economic slowdown) during the forecast period (2009-2012). It is projected to grow at a CAGR of around 7% during the forecast period, according to Research and Markets.

Both electronic as well as print media are playing an important role in spreading awareness about cosmetic products and developing fashion consciousness among the Indian consumers. With the introduction of satellite television and a number of television channels as well as the Internet, the Indian consumers are constantly being updated about new cosmetic products, translating into the desire to purchase them. Additionally, the flourishing Indian fashion/film industry is fuelling growth in the industry by making Indians to realize the importance of having good looks and appearances.

Despite the massive surge in the popularity of cosmetic products, our report finds that the average consumer spending on cosmetic products in India is much lesser than any other part of the world. This implies that the Indian cosmetic industry has an even greater potential for growth in future than present.

At present, most of cosmetics manufacturers in India cater to the domestic market but they are gradually establishing their footholds in overseas markets. In recent years, the Indian cosmetic manufactures have received orders from overseas markets; for example – Indian herbal cosmetic products have a tremendous demand in the international market.

However, manufactures should not forget that the Indian domestic market is price sensitive and they need to work out innovative strategies to establish a foothold here, the report added.

More info: Research and Markets, www.researchandmarkets.com