The Indian Beauty and Personal Care (BPC) market was expected to grow at a CAGR of 9% and become a $22 billion industry by 2022. The personal care industry saw a steady rise simultaneously with the income of Indians. This created a strong desire to upgrade the quality of life.
The most important sector within the industry was Mass beauty worth $11 billion. Skincare was the major topic within this section. It was followed by hair care and personal hygiene products, with a combined market value of $3 billion.
But the pandemic screeched its breaks and the industry incurred a loss of Rs 70 billion in 2020. Yet it is believed it will regain its momentum and reach $28958 million by FY26. Till 2016, the biggest players in the market were all international players namely, Hindustan Unilever, Colgate-Palmolive India and L'Oréal India. Their combined market share was 36.4%.
But the tides have changed. In 2018, herbal cosmetic and wellness segment grew by 15-20%. As many customers realised the perils of chemicals, natural and herbal brands like Himalaya, Dabur, Biotique and Patanjali gained centre stage. Since 2017, Vandana Luthra’s VLCC brand has dominated the global herbal skincare market especially in South Asia and the Middle East.
With these leading players, many lesser-known companies started receiving the spotlight. Companies like Khadi Essentials, Dr Sheth’s, Kama Ayurveda and more started serving not only the Indian demographic but also foreign. Brands like Estee Lauder, Body Shop and Bobbi Brown are facing competition in the premier and luxury category from Indian brands like Shahnaz Hussain and Forest Essentials.
Seeing the rise of ‘natural and organic’, Sequoia India contributed Rs 130 crores in MamaEarth and Procter & Gamble announced a growth fund of Rs 400 crores for the Aatmanirbhar ideology. The demand for herbal and ayurveda in the Indian market is undeniable. According to Goldstein Market Intelligence, the top companies in the Indian cosmetics market are Himalaya, Biotique, Dabur, Lotus and Patanjali.
Hindustan Unilever Limited claims that consumers are themselves wanting ‘meaning over materialism’. It is time to contribute our bit in the vocal for local campaign. Vocal For Local not only helps the Indian economy but also nurtures our traditional roots. Which Indian healthcare brand are you most proud of?