Beauty, personal care market to touch $10 billion by 2021: IBHA
Beauty and personal care (BPC) market in the country is expected to touch USD 10 billion by 2021 growing at an annual rate of 5-6 per cent on the back of evolving consumer awareness and aspirations, according to a report by IBHA.
On a global comparison, per capita spend in India at USD 7 (about Rs 450) on BPC is significantly lower than that in developed nations and the market is estimated to be USD 8 billion, according to the Indian Beauty and Hygiene Association (IBHA).
Yet, the expansion of the market is in line with India's GDP growth, it said, adding the rural market will also start driving growth.
"There is a paradigm shift in consumer preference from looking good to feeling good, and the industry is innovating to address the evolving consumer awareness and aspirations," IBHA said in its report.
The BPC industry is categorised into five segments -- body care, hair care, face care, hand care and colour cosmetics.
While the market is predominantly urban, going forward, growth is expected to rise in rural markets too.
Godrej Group Chairman Adi Godrej, who is also a member of IBHA, said consumer behaviours and spending patterns have shifted and continue to shift as incomes rise and Indian society evolves.
According to the report, body care is the largest category and grew at about 4 per cent CAGR between 2014 and 2016 while colour cosmetics was the fastest growing category, at 12 per cent.
The premium segment is expected to grow at 6.3 per cent per annum, compared to the 1.1 per cent growth predicted for the mass market products, it added.
IBHA is a trade association of the beauty and personal care industry in India.
Its members include Hindustan Unilever,?Marico, Godrej, P&G, Johnson & Johnson, Wipro and L'Oreal India, among others.