Indian personal care segment to surpass $14bn mark by 2015: Study

The Indian personal care segment, despite economic slowdown, is witnessing robust growth driven by the rising per-capita income and growing consumer trends.

The Indian market for high-end products and services, which is estimated at over $8bn currently, is growing at an annual rate of about 20% and is likely to surpass INR738.72bn ($14bn) mark by 2015, reports the website cosmetics.einnews.com.

According to the research firm Gyan Research and Analytics, the personal care industry, which has been growing at a rate of 13% annually, is valued at INR300.76bn ($5.7bn), while the service sector under this segment reported INR153bn($2.9bn) in 2010.

The study revealed that weak economic activities notwithstanding, the grooming industry is witnessing 20 to 25% growth in India, while the country’s economic growth was a mere 5.5% in the first quarter of 2012, as against 8% in the corresponding period of 2011-12.

The Confederation of Indian Industry (CII) said for the last two years Indian colour cosmetics and skin care markets havv been increasing and have registered a growth rate of 20% in 2010.

According to the another market researcher Nielsen, in 2011, it was found that 77% of the Indian women are willing spend more of their income in buying health & beauty care products.

The market is also ruled by men’s grooming products such as after shave, hair creams, shaving creams and others with a INR40bn ($758.07m) share, of which deodorants segment is the driver.

The deodorant market in India is worth about INR13bn ($246m), which has grown majorly owing to the male consumers with a growth rate at 20 to 25%.

The study concludes that top management in the industry feels that going forward, best returns for the long-term would come through investments in luxury assets and in the short-term, it would be luxury products.