India’s cosmetic sector has, in fact, emerged as one of the markets holding immense growth potential. The Indian cosmetics market registered impressive sales worth Rs 264.1 billion (US$ 4.75 billion) in 2011. The industry is estimated to expand at a compound aggregate growth rate (CAGR) of around 17 per cent during 2011-2015, according to RNCOS latest research report titled ‘Indian Cosmetic Sector Forecast to 2015′.1
Boosted by the growing importance consumers give to their appearance, it has enjoyed double-digit growth in recent years (+13% in 2010), recording the highest growth of any country in the Asia-Pacific region.
The market is especially rich in opportunities since most products still have low penetration rates among the population. For instance, only 50% of households use shampoo and 23% use skin care products.
The outlook is encouraging: although cosmetics spending is still relatively low, sales of skin care products, as well as make-up and hair products – especially hair oils – which are already booming, should continue to grow but on the condition of innovating and adapting to the needs of these new consumers and of selling the products at the right price in the right place.
1 Source: India Brand Equity Foundation Retail Report, June 2012
Global Source: Indian Hair Care Market Forecast to 2015
Did you know ?
1/ India is a top destination for private clean energy investment, according to a research report released by The Pew Charitable Trusts.
India’s clean energy sector continued to flourish in 2011, with private investment increasing 54 per cent to US$ 10.2 billion, placing the country at sixth position among the G-20 nations.
This was the second highest growth rate among the G-20 nations.
2/ India is the global leader in the IT-business process outsourcing (BPO) industry with half of the world’s back office being located here.
Indian outsourcing revenue at US$ 59 billion for 2011, accounts for 51 per cent of the global offshore market share, as per a report by Tholons Research.
The total direct employment by Indian IT-BPO sector (as of 2011) was 1.98 million and indirect employment was 7.5 million
3/ The Indian internet economy is expected to touch Rs 10.8 trillion (US$ 203.77 billion) by 2016, according to a report titled ‘Connected World Series study’ by the Boston Consulting Group.
India’s internet economy’s growth rate of 23 per cent makes it the second fastest across the G-20 countries and ahead of many other developing nations.
The report ‘The $4.2 trillion Opportunity: The Internet Economy in G-20′, further notes that if the internet were a sector, it would be the eighth largest in India.