Personal Care Industry

Overview

The personal care industry in India can be described as one of the most fiercely competitive industries and has a market size of over $4 billion. The sheer size of this industry has seen the growth of several Indian and multi-national companies with each of them offering several diverse products in terms of hair care, skin care cosmetics etc. This industry accounts for 22% of the country’s fast-moving consumer goods (FMCG), which is the term for Consumer Packaged Goods in India. Foreign direct investment in this sector was a mammoth $691 million in 2014. Some of the dominant players in the industry are Hindustan Unilever, Dabur, Marico and Colgate Palmolive.

Product Segmentation

Domestic and Global Outlook

Brands play a major role in the personal care industry and a company’s dominance can be best measured by the power of its brands. Shampoos, under hair care (which is the most important segment of the industry) is dominated by HUL’s Sunsilk, Clinic Plus and Clear brands. With a market size of $818 million, the shampoo segment plays an important role in the personal care business. Hair oil is another major product and is dominated by Marico’s Parachute and Dabur’s Vatika, which are leaders in the production of coconut hair oil.

 

The soap and bath segment is another important component of this industry and has seen a growth of over 5% over the last 5 years. It is dominated by Godrej’s Cinthol, Reckitt Benckiser’s Dettol, Wipro’s Santoor, and Unilever’s ,Hamam and Lifebouy

 

While the above are just snapshots of certain segments, the Indian health care industry offers enormous potential in monetary terms given the growth of the Indian economy in general. Besides this, the industry is trying its best in keeping up with changing trends, starting from purely health notions and moving on to fitness, to well-being coupled with beauty. In an effort to adapt to these changes, the industry has moved from basic products such as soaps, shampoos and hair oils to functional products such as cold creams and now to specialized products such as sun block lotions, body exfoliating creams and skin whitening & anti-ageing products.

 

Future Potential

In order to gauge the possibilities of the personal care industry in India, we will compare it to China’s personal care industry. China spends almost 10 times as much on skin care, 6 times as much on cosmetics and more than 2 times on hair care on a per capita basis, and this is despite the fact that the two countries have fairly similar amount of disposable income per household. This therefore, highlights the huge potential and several social, market and industry trends signal the realization of the same in the near future.

 

Market trends like the spread of organized retail to Tier II cities, development of non-traditional segments like men’s cosmetics (with products like hair gels and fairness creams) and development of a wide range of products at different price points are all factors which could contribute to the growth of the domestic personal care market. The organic skin care segment is also promising with a growth of over 20 percent annually and is expected to total $157 million in 2020

 

Within the personal care industry, hair care products are expected to grow at a rate of 9% per annum and the skin care segment is expected to grow at a rate of 5% per annum. The sector as a whole is slated to grow at a rate of 15-18% per annum and given the current growth of the Indian economy, this target is hoped to be accomplished.

What this report contains:

  • A detailed overview of the industry

  • Structure of the industry from both, domestic and international perspectives

  • Related industries that this industry has inter-dependencies with and their understanding

  • Detailed analysis of industry segments in terms of the value and depth of corresponding market

  • Analysis & insights about the elements and critical success factors of this industry using strategic models

  • A forecast on the state of this industry in 2021, predicting the growth and movement patterns for 2016 - 2021

  • Our professional analysis on the future of the industry based on strategic actions adopted by major industry participants analysis and their key strategic initiatives

  • Quantitative estimates and forecasts of the growth prospects of the industry using revenue and financial forecasting models and Valuations of major players of the market

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