Indian market researchers RNOS have published a report on the cosmetics market in the country, predicting annual growth of nearly 7 percent between 2009 and 2012.
Defining the cosmetics market as comprising of skin care, hair care, color cosmetics, fragrances and oral care, RNOS said it is currently worth $2.5bn.
The Indian market has grown up quickly in recent years, drawing in some of the biggest international companies. Last week, ingredients supplier Cognis opened an affiliate in India after sales in the country rose 30 percent last year.
Guido Appl, general manager of Cognis India said: “Many of our existing and potential customers are also exploring business opportunities in India.”
The increased involvement of major international firms is indicative of the growth potential of the Indian market.
RNOS said the Indians are increasingly beauty conscious and their newfound awareness of cosmetic products is driving growth.
High growth segments
Within the cosmetics sector, RNOS said color cosmetics and skin care are the highest growing segments. They are expected to register annual growth of nearly 13 percent and 20 percent respectively until 2012.
In the new report, the researchers also said Indians are embracing entirely new segments of the market such as spa, salon and herbal cosmetics.
Estee Lauder targeted these emerging trends last year when it took out a minority stake in Forest Essentials, which specializes in Ayurvedic products and is the number one spa brand in India.