Le Secteur Du Cosmétique En Inde

1. India – Brief Profile

India is a large country with total area of 3.28

million sq.km., sharing land border with six

countries, and a long coastline of 7,000 km. The

country is a federation of 29 states and 6 union

territories (administrative units).

India’s total population is 1.17 billion, growing at

1.54% per annum. The overall literacy level is

59.5%. There are 14 officially recognized

languages. Hindi is the most used language.

English is widely used in business as well as in

everyday life.

India is among the fastest growing economies in

the world, with average GDP growth rate of 8.8%

2003‐04 to 2007‐08. Under unprecedented global

economic conditions in 2008‐09 where many

countries have registered negative growth Indian

economy is among the fastest growing, with

growth rate for 2008‐09 estimated at around 6.7%.

The business regulatory environment is fairly

open, and follows free‐market competition

principles. All quantitative restrictions on trade

were removed in 2001, except for a few highly

sensitive goods.

India is a unique market on accounts of its

diversity in age, income, and urban‐rural

demographics.

Age‐group distribution: India is a very young

nation with 85% of its population below the age of

45 years, and 55% of its people below the age of

25 years of age. Young adults, the group between

20‐35 years, represent nearly 25% of the consumer

base in the country, drive the lifestyle trends.

Urban‐Rural distribution: Nearly 32.3% of India’s

households are in urban areas. Nearly 38% of

urban households are in middle and higher income

strata, while only 14% of rural households have

similar income levels.

Income Classification: The real consuming class of

300 million people outnumbers several of the

world’s largest markets in terms of market

potential. Of these, around 150 million people (2

million very rich and 30 million rich households)

represent the consuming potential, particularly for

lifestyles goods and services.

Cities: Mumbai, Kolkata, Delhi, Hyderabad and

Chennai are the most populated and wealthiest

cities, closely followed by Bangalore, Ahmedabad,

Pune, Vadodara and Kanpur. The top seven cities

Mumbai, Delhi, Chennai, Kolkata, Hyderabad,

Ahmedabad and Bangalore together have over 6

million homes falling in the upper socio‐economic

strata.

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2. India’s Cosmetics Sector

2.1 Market Size

The total personal care market in India was

estimated at 2.3 billion Euros in 2008. Of this,

almost two‐thirds is constituted daily hygiene

product categories, namely personal wash

(soaps etc.), oral care (toothpaste and

powders) and shampoos. Excluding these

three categories from the personal care

market, the size of Indian cosmetics market is

estimated at 750 ‐ 800 million euros. Skin

care is most important category in value

terms, followed by hair dyes/colours and

colour cosmetics. Men’s grooming products,

which includes skin care, hair grooming and

deodorants / perfumes for men, is also

emerging as a significant segment in the

Indian cosmetics market.

Personal Care Market Segments, by Value

2.2 Principal Market Segments

Keeping in view the cosmetics portfolio, the

relevant market segments in the Indian

cosmetics products market are briefly

described below.

Skin and Body care products: skin care is a

crowded market, estimated at about 350

million euros, and has been growing up at 12‐

13% per year, with Fairness products having a

major share of the pie in sales, both by value

and volume. Traditionally fairness products

were targeted towards women consumers,

but in recent years the usage among male

consumers has increased significantly,

accounting for nearly 25% of the fairness

cream usage across the country

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