Editorial May 2023 Changes Growth and Trends in the Cosmetic Industry

Rajiv Parikh

15 May 2024
HTML Content EditorAs per the Drug and Cosmetic Act 1940, “cosmetic” means any article intended to be rubbed, poured, sprinkled or sprayed on, or introduced into, or otherwise applied to, the human body or any part thereof for cleansing, beautifying, promoting attractiveness, or altering the appearance, and includes any article intended for use as a component of cosmetic.


The cosmetic industry is one of the most lucrative and dynamically changing industry in the chemical sector. With the short life cycles of cosmetic products, diverse climatic conditions and fast changing trends in the fashion industry the cosmetic products manufacturers need to be constantly evolving and innovative. The product competition is fierce and the rising middle class has contributed to the rise in the cosmetic industry along with new social media and marketing paradigm shift. Also the natural and ayurvedic products have increased competition in the personal care and cosmetic industry. Imagine Patanjali, an Indian Ayurvedic and cosmetics industry products are in direct competition with Hindustan Unilever and L’Oréal’s of the world.

The global cosmetic industry shows no signs of slowing growth. Its market size was valued at $380.2 billion in 2019 and is projected to reach $463.5 billion by 2027, registering a CAGR (Compound Annual Growth Rate) of 5.3% from 2021 to 2027. The Indian Cosmetic Market growth rate of 2.3% for the year 2019-2020, with a market value exceeding $15 billion in December 2020. According to one report, the Indian Beauty and Personal Care Market is projected to reach USD 24.53 Bn in 2022 and is expected to reach USD 33.33 Bn by 2027, growing at a CAGR of 6.32% (Research and Markets, 2022). The IPO launch of Nykaa, put the spotlight firmly on this sector, with analysts real- izing the potential in this evergreen industry. The success of Patanjali and the advent of international brands like Bath andBody works and Body Shop are few examples which has seen success in themarket of more than a billion people.

According to statista
 
  • Revenue in the Beauty & Personal Care market amounts to US$27.23bn in 2023. The market is ex- pected to grow annually by 3.38% (CAGR 2023-2027).
  • The market's largest segment is the segment Personal Care with a market volume of US$12.59bn in 2023.
  • In global comparison, most revenue is generated in the United States (US$91.41bn in 2023).
  • In relation to total population figures, per person revenues of US$19.18 are generated in 2023.
  • In the Beauty & Personal Care market, 12.7% of total revenue will be generated through online sales by 2023.

With the increasing shelf space in retail stores, many multinational brands have participated in the booming cosmetics and personal care space. According to TechSci research report, in association with Assocham, India accounts for a tiny share of the global cosmeceutical, cosmetics and personal care market. This is changing rapidly due to the macro economic factors such as improving demographics, development of Tier II and Tier III cities in India, rising middle class, expansion of retail and online stores, and social media influencer community promoting and marketing the products. Globally, the cosmeceutical, cosmetics, & personal care sector is expected to grow at a CAGR of around 3.5%, which is much lower than the anticipated growth in India. Various foreign FMCG multinationals such as Hindustan Unilever Limited (HUL), L’Oréal Paris, Procter and Gamble (P&G), Nivea, etc., have already established themselves in India. Increasing technology adoption, growing urbanization and structural reforms that are being introduced by the government are some of the major factors supporting growth in the Indian market. If you are a part of the cosmetic industry, connect with us, make your profile on the Chemical Market Leads Platform and list your raw materials used in the cosmetics industry.

On another note, Expo Paints and Coatings (EPC) 2023 going to be held in Delhi, Pragati Maidan from 13th – 15th July. We are booking the raw space and shell scheme for EPC 2023. For more details, please contact us or send us an email.


 

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