Indian beauty care market to grow at 20-25%: Study

Hair and skincare products continue to take a majority stake in the Indian wellness market, though, colour cosmetics and fragrances are forecasted to beat growth in hair and skincare segments by 25 to 35% by 2014, according to a study by PricewaterhouseCoopers (PWC) and Federation of Indian Chambers of Commerce and Industry (FICCI).

The market report has revealed that the consistent experience of products by consumers is giving the the organised segment a fillip , reported The Times Of India.

According to the study, organised players, such as Jawed Habib Naturals, VLCC and Lakme, have also started discovering new methods of earning more revenue by extending into branded products or adding additional wellness services into their portfolio.

The study has shown that growth for most players continues to be driven by the addition of new outlets.

Since 2011, the salon category saw value growth slacken, as consumers showed an increased preference for relatively inexpensive non-surgical treatments over more expensive surgical cosmetic treatments. This is allowing new entrants, such as UK-based Saks Hair & Beauty, to enter the salon market in India, the report said.

The report has also shown that the non-surgical treatments sector doubled its growth during 2011.

The fitness and slimming market has registered a growth of 25 to 30%, which was posted across services in the sector that is fragmented with a large number of players.

Many leading fitness chains across the country have shown aggressive growth ,causing them to double their number of centres. Expansion was more prominent in tier II and tier III cities and towns.

The report has also shown that organised fitness service providers, in order to gain new customers and retain interest levels, are looking beyond commonplace services and adding new service offerings, such as pilates, spinning, zumba and power yoga, to boost revenues.