Legislation deficiency hindering growth of Indian ingredients market

By Katie Nichol

- Last updated on GMT

The deficiency of proper legislation has hindered the growth of the Indian personal care ingredients market, both internally and abroad, according to recent research from Frost and Sullivan.

The company’s recent research, Strategic analysis of the Indian personal care active ingredients market, ​revealed that​lack of regulation and intellectual property or trademarks for ingredients is making it difficult for domestic manufacturers to effectively compete in the market.

No standard regulations for the personal care ingredients sector

Natasha Telles, senior research analyst of chemicals, materials and foods at Frost and Sullivan, said that the Indian personal care market is hindered by uncertainty, as there are no established laws or rules that specifically cater to this sector.

Presently, all cosmetics are governed by the 1940 Drugs and Cosmetics Act and by the Indian Food and Drug Administration (FDA).

“There are no specific laws catering to the individual sub-segments of active and inactive ingredients,”​ Telles told CosmeticsDesign, adding that as a result, manufacturers set their own standards through research and development.

Whilst Indian subsidiaries of multinational companies follow the standards of their parent companies and bodies such as the European Cosmetics Toiletry and Perfumery Association (COLIPA), smaller companies do not have access to such standards, which has resulted in the market being filled with products of varying standards and consistency, she explained.

Loss of credibility for exporters

As well as making in difficult for domestic manufacturers to compete in the Indian market, which is dominated by international players, this loss of credibility also extends to those in the export sector.

“Indian manufacturers exporting abroad are unable to compete with their

international counterparts in terms of quality and standard accreditation,” ​Telles explained.

“In addition, the lack of patents and ownership of extracts result in a dearth of intellectual property till the multi-national corporations step in and patent a product that Indian manufacturers have been selling for decades without any IP rights,”​ she added.

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