The Growth Story of Aerosols and Fragrances in India
The aerosol is basically a suspension of fine solid particles or liquid droplets in the air. They can be natural or anthropogenic. There are various applications of aerosols which include the medical treatment for the respiratory disease, delivery of deodorants, paints and other consumer products in sprays; they are used for research and testing samples for equipment and air filters, for application of pesticides in agriculture and for fuel injection systems and other combustion technology. Aerosols are widely used as air filters in offices, homes,and cars.
A number of companies manufacture aerosols in different types and styles. If you are using one for your home, you will be able to choose from a large number of fragrance options. It is expected that the global aerosol market will grow to $27 billion in 2020 at a growth rate of 4.5%. This is mainly due to the increase in demand for personal care aerosol products. Lotions, sprays, creams, gels,and mousses can be dispensed in a wide range of applications. It is mainly this versatility that allows aerosol to move into new areas. There is also a potential for growth in new areas like sunscreens, after sun lotions and food. The packaging used in aerosols allows for a 360-degree usage which means consumers can apply the products all over their body with a spray system. It might not have been possible to imagine that the industry will thrive like this. The industry works hard to innovate and use products that are not environmentally damaging.
A consumer barrier is the belief that aerosols are wasteful in terms of its application and they are difficult to recycle. Aerosols have the capability to concentrate products and there are some compressed format products available in the market now. Unilever has introduced compressed aerosol where a 75 ml can last as long as a 150 ml can. There are almost 25% less gas and aluminum used and it is appealing to the consumers. There are three billion aerosol deodorants sold each year across the world. The entire industry is driven by consumer demand and the manufacturers need to keep moving according to their demands. Innovation can range from new formulations and fragrances to the changes in hardware. There are new developments in the industry with the introduction of recycled material which is used to make aluminum cans that are 15% lighter than the standard aerosol can.
It is difficult to achieve sustainability in the industry. One of the biggest challenges is the skills gap. Many professionals are not aware of the opportunities in the aerosol industry and there is a major gender imbalance. There are skill gaps because people are retiring and moving into new sectors. The future for the industry looks positive with a mature technology. The personal care industry is a major contributor to the market. The segment is expected to create substantial opportunity in the coming decade.
In addition to aerosols, the fragrance industry has also dominated the sector. India fragrance market has shown a steady growth in the last five years and with the advances in technology, it has become possible to make a strong impact on the personal grooming industry. There is increased consumer spending and the growth of e-commerce has made international brands very popular in the country. The fragrance market has grown at a CAGR of 10%. The size of the perfume industry in the country is estimated to be INR 2000 crores and it is expected to grow by 50% and reach INR 3000 crores by next five years. The online perfume market is expected to grow at the rate of 120%. With more and more consumers turning to online shopping, the market share is expected to rise in the next three years.
In order to make a mark in the International market, India needs to make an investment in research and development activities. There is a dearth of the skilled human resource at every stage. The industry also needs to carry out the standardization of a number of products. There is a need for investment in technology in the sector.
There is a huge scope for growth in the coming years if sufficient investment is made in the sector. Foreign players are driving consumers through e-commerce channels and offering a range of high-quality products. With malls and smartphone penetration in Tier 2 and Tier 3 cities, it has become easier for the companies to reach out to a wider consumer base. The industry has undergone a revolution and changed the face of cosmetic and personal care industry. With investment and technology, it can achieve higher growth and success in retail through e-commercechannels. Consumers are willing to spend more on luxury fragrances and are making informed decisions by engaging with the brand. India has a huge potential but needs skilled personnel and investment to make it to the top.
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