Changing lifestyles, and growing awareness contributed 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. One such success story in the sector, founded by Falguni Nayar was Nykaa one of the leading cosmetic companies with the largest share in the online beauty and personal care market.
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.
Table of Contents
1. Global overview
Description: In 2021, revenue created by the beauty & personal care market across the globe was highest in the United States, with 80.2 billion U.S dollars. China creating a revenue of 51.7 billion U.S. dollars ranked second in front of Japan with a revenue of 37.8 billion. Germany ranked first among European countries with more than 200 million dollars more in annual revenue than the United Kingdom.
Description: This statistic shows the brand value of the leading 10 cosmetic brands worldwide in 2022. In that year, L’Oréal Paris was at the top of the list, with a brand value worth of about 11.22 billion U.S dollars. dollars.
Description: This statistic shows the number of personal care contract manufacturers worldwide as of March 2022, by country. That year, there were 315 contract manufacturers for personal care products in the United States.
Description: The Asia Pacific region accounted for 43 percent of the global cosmetics market in 2020, solidifying the region as the world`s biggest cosmetics market. Asia Pacific`s global market share has increased steadily from 2015, in which the region made up 36.2 percent of the global cosmetics market.
2. Market overview
Description: Household and personal care made up the highest share of India’s FMCG market in financial year 2019. Food and beverages, on the other hand made up only 19 percent during the measured time period. The market was worth an estimated 110 billion U.S. dollars in 2020.
Description: n 2020, the market size of the beauty and personal care industry was valued at one trillion Indian rupees in India. The market size for this industry is likely to increase to about two trillion Indian rupees by the year 2025.
Description: In 2021, the total funding for beauty and cosmetics companies was 1.9 billion U.S. dollars in India. This was a decrease as compared to the previous year when the funding was 2.1 billion U.S. dollars.
Description: In fiscal year 2020, the revenue growth was highest for online beauty and personal care company, MyGlamm, at 221 percent in India. In comparison, the revenue growth of Purplle was down 13.5 percent during the same year.
Description: MamaEarth experienced the highest growth in the number of employees with a gain of 8 percent in August 2022. This was followed by Just Herbs and Nykaa with 2 percent growth in the number of employees.
3. Market players
Description: As of March 2022, Hindustan Unilever was the leading company in the household and personal care segment with a net sales of approximately 459 billion Indian rupees. Dabur India came in second with a net sales of approximately 71 billion Indian rupees.
Description: In financial year 2022, Hindustan Unilever Limited reported a gross sales value of about 503 billion Indian rupees, up from about 267 billion Indian rupees in financial year 2013. Hindustan Unilever is a subsidiary of the British-Dutch FMCG company Unilever and it is headquartered in Mumbai.
Description: Dabur Limited reported a net sales value of about 72 billion Indian rupees in financial year 2021. This was an increase as compared to the previous fiscal year. Dabur Limited is an Indian consumer goods multinational company. The company manufactures natural and ayurvedic products.
Description: Marico Limited reported a net sales value of 63 billion Indian rupees in financial year 2021. This was an increase as compared to the previous fiscal year. Marico Limited is an Indian consumer goods multinational company. The company manufactures health, beauty and personal care products.
Description: The net sales of Godrej Consumer Products amounted to nearly 70 billion Indian rupees at the end of the financial year 2022. There was a consistent increase in the net sales for the Indian FMCG company since the financial year 2017 except for a dip in financial year 2020.
Description: Colgate-Palmolive India Limited reported a net sales value of over 48 billion Indian rupees in fiscal year 2021. There was a consistent increase in net sales since fiscal year 2017. This company is the subsidiary of Colgate-Palmolive, an American multinational consumer products company.
Description: Emami Limited reported a net sales value of over 25 billion Indian rupees in financial year 2021. This was a consistent increase since fiscal year 2016. Emami Limited is a multinational FMCG company with headquarters in Kolkata, India. The company manufactures personal and healthcare products such as Navratna oil, Boroplus antiseptic cream, and Zandu balm.
4. Digital players
Description: In 2020, the market size of the online beauty and personal care industry was valued at three billion U.S. dollars in India. The market size of the online beauty and personal care industry is likely to reach to about six billion U.S. dollars in 2025.
Description: In 2021, the share of Nykaa in the online beauty and personal care market was 38 percent in India. In contrast, the share of Amazon and Flipkart was 20 percent during the same year. Vertical market companies provide specific insight and specialized services to the customer.
Description: The Indian online marketplace Nykaa experienced an exponential growth since 2018. Starting with a revenue of only a little more than five billion Indian rupees, the yearly revenue amounted to 32 billion rupees in the fiscal year 2022.
Description: The online beauty and cosmetic platform Purplle had a revenue of more than 1.2 billion Indian rupees during the fiscal year 2021. This was an increase as compared to the previous year when the revenue for Purplle was 914 million Indian rupees.
Description: In 2021, the revenue from operations of Sugar Cosmetics amounted to 1.26 billion Indian rupees in India. This was an increase as compared to the previous year. Sugar Cosmetics is a fast growing luxury cosmetics company with headquarters in Mumbai, India.
Description: In 2020, the revenue of MyGlamm was worth 439 million Indian rupees. This was a significant increase as compared to the previous year. MyGlamm is an online beauty brand providing direct-to-consumer services with headquarters in Mumbai, India.
5. Consumer behavior
Description: According to a survey conducted on social media’s impact on purchase decisions of consumers in India in March 2022, 76 percent of respondents bought skincare and makeup products because of social media influence. Moreover, 70 percent of participants bought personal care products due to the influence of social media.
Description: In India 53 percent of the respondents said that their preferred purchase channel for buying personal care products are online aggregators. Another important purchase channel with a share of more than 30 percent are online cosmetic platforms. Physical stores were preferred by less than one fifth.
Description: According to a survey conducted on the purchase preferences of Indian consumers for online beauty and personal care products in February 2022, effects on the skin and fragrance of products with delighter’s scores of 7.4 and 5.5 are the most important factors for consumers while purchasing a beauty or personal care product online. In contrast, the price of the product with a delighter’s score of 2.6 is the least important factor for online buyers.
Source from Statista
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