Indian cosmetic market is  US$1.5 billion in next three years

It is estimated that the Indian beauty market is worth more than US$1.5 billion and is rising at 25% p.a. - twice as fast as the US & Europe markets, thereby offering extensive opportunities to domestic and international players.  Around 20 million consumers in India use branded products by Unilever, Procter & Gamble, Godrej and Dabur. The reason for low penetration of international brands in India is the price differential due to which foreign brands constitute only 20 per cent of the market.The current size of India’s cosmetic and toiletries market is approx US$950 million  with colour cosmetics, accounting for around US$60 million,the skin care market  US$180 million ,the size of the hair care market in India is about US$200 million,the herbal cosmetics segment in India, estimated at US$100 million.

The  skincare sector is one of the fastest growing segments as Indian  consumers have started using specialized skincare products according to their skin type. The market for fairness creams, facial creams, moisturisers, cleansers are growing at a rate of 18-20%. It said despite high penetration of cosmetic items and new foreign brands foraying into the country, India's consumption of cosmetic and toiletries is far less than other Asian countries. The per capita consumption in Hong Kong is 50 times that of India, while Japan's consumption is 18 times.

The Indian cosmetic market, which has been traditionally a stronghold of a few major Indian players like Lakme and Ponds has seen a lot of foreign entrants to the market within the last decade.  India is a very price sensitive  market and the cosmetics and personal care product companies, especially the new entrants have had to work out new innovative strategies to suit Indian preferences and budgets to establish a hold on the market and establish a niche market for themselves. Given the price-sensitivity of the Indian consumer who do not normally prefer to fork out a large sum at one time, many cosmetic and toiletries companies launched their products in smaller pack sizes to make them more affordable.

A number of companies/firms is India is  dealing with perfumes, cosmetics, hair care, skin care, toiletries, salon, spa products and equipment, raw materials, packaging as well as private label products and services.In addition there are importers, distributors, retailers and traders related to beauty industry.