Key Driving Factors of Cosmetics Industry in 2018
The cosmetics market in India currently has an overall market standing of USD 6.5 billion and is expected to exhibit strong growth of 22% by 2025. The beauty industry makes up 22 percent of India's market for consumer packaged goods. With the improving purchasing power, demand for enhanced products and increasing image consciousness of the Indian clientele, many international brands have established footprints in India. There are many factors that fuelled up the beauty industry of India. Below are the major factors that drove the cosmetics industry in 2018
Multi-purpose Products
Products with multiple benefits such as those with anti-ageing properties, moisturizing care and suntan protection were very popular in the skin care cosmetics industry this year. Foundation creams that offer multiple benefits such as sun protection, moisturizing, oil-free and no pore-clogging have witnessed rising demand, especially from the working women population. High demand for anti-dandruff and anti-hair loss hair care products were being witnessed in the hair care segment.
Shifting Trend to Organic-based Cosmetics
With the increase in the number of healthcare problems associated with traditional cosmetics, consumers were compelled to shift to organic cosmetics. These were especially popular among the younger generation. A major share in demand for organic cosmetics across the globe was emanating from consumers in the age group of below 30years.
Growing Demand for Innovatively Packaged Cosmetics
The innovative packaging has played an important role in driving sales of cosmetics in 2018. Multinationals preferred to use environmentally friendly packaging material.
Packaging requirements of men are different from that of women. For instance, when it comes to face creams, men do not like to stick their fingers into a jar. Thus, companies had been offering creams in pump packages. Pack functionality was also very important in this sector as male consumers seek more practical and simple forms of packaging.
Further, consumers are actively seeking cosmetics with packages/labels, which depict that the manufacturer complies with environmental ethics. Understanding how this commitment to sustainability can be communicated on the packaging was becoming a key factor to attract more consumers.
New product developments happening in the market
Going green became the new anthem in the fashion and lifestyle categories. As a result, cosmetic brands have gone eco-friendly with the range. With an increasing inclination of Indian consumers towards natural and herbal cosmetic products, the Indian cosmetics industry encountered numerous herbal cosmetic brands like Amway, Forest Essentials, Biotique, Himalaya Herbals, Blossom Kochhar, VLCC, Dabur, Lotus, Jovees, Kama Ayurveda, Patanjali, Just Herbs, and many more. Even foreign brands have now dived into natural products this year.
