India’s skincare market has been constantly evolving to cater to its consumers’ diverse tastes and demands.. The pandemic did cause disruptions and the market has been undergoing various changes ever since then. However, the current scenario is such that it is growing at a rapid pace and seems to have a promising future.
Allied Market Research highlights in its recent report that the Indian skincare products market is expected to hit the $5033.7 million mark by 2027 and will grow at a CAGR of 9.5% from 2021 to 2027. This growth will primarily be due to factors such as the youth population, the surge in disposable incomes, and the transition of the Indian consumers towards a healthy lifestyle and increased focus on hygiene. According to Statista’s report, the skincare revenues in the country are also expected to stand at $7644.9 billion by the end of 2022 and the market is anticipated to grow at a CAGR of 5.15% from 2022 to 2026. These stats are indicative of the fact that the Indian skincare market is flourishing and is expected to boom even in the times to come.
During this growth journey, the market will witness various trends that will transform significantly. Some of the notable ones are shared below-
It’s all about making wise and conscious choices
The modern consumers are all the more cautious and conscious about sustainability and the choices they make especially when it comes to purchasing skincare products. The coronavirus has a major role to play in bringing about a change in the mindset and psyche of the consumers. They are now well informed and well aware. They research thoroughly before choosing the products they wish to purchase. They even screen the products well for their ingredients, manufacturing dates, expiry dates, etc. Hence, they make wise choices and prefer purchasing only after knowing the products well, especially while finalizing daily skincare products.
The preference for natural, made in India, and non-luxury products
As mentioned above, consumers today are educated and well-informed. Hence, they now demand natural products that are non-toxic to the skin. This trend was highlighted by Statista in its recent report which states that consumers now prefer non-luxury products and the ones made in India as they come with credibility to work on Indian skin. These reasons have made skincare brands focus on creating cruelty-free, safe and eco-friendly products offering- One stop solution.
The hectic lifestyle and demand to do more in limited time span have pushed for products with multiple actives. Customers don’t need an expansive 12 step beauty routine for healthy, happy skin. While they are constantly hearing about new ingredients they should be putting on the skin and their efficacy. There is a shift towards Serum which have multiple active for all their skin concerns. A serum with all-in-one formulations with ingredients like Vitamin C, Hyaluronic Acid, Niacinamide & Retinol in one bottle is the need of the hour.
Natural & Organic is the way forward
The top shelf commercial products are no longer their choices since these have chemicals like suplhate and mineral oil and can impact both the skin as well as the environment. Hence, customers prefer products that are vegan and sustainable. They demand skincare and haircare products that are devoid of toxic chemicals. The ones that are safe for usage and are prepared with organic and/or natural ingredients are their go-to option for their skincare regime.
The promising future of the organic skincare market: Factors driving its growth
The organic skincare market is evolving at a rapid pace. According to Grand View Research’s report, the global organic skincare market stood at $9.83 billion in 2021 and is projected to grow at a CAGR of 8.9% from 2022 to 2030. The Asia Pacific region is the fastest-growing market and will grow at a CAGR of 9.2% from 2022 to 2030. In fact, global certification bodies, Cosmos and Nature have also pointed out that India is emerging to be one of the strongest organic skincare markets. It is leading by surpassing even Japan and Korea in the Asian market.
Various factors are contributing to the growth of the segment. The growing consumer awareness, changing lifestyles, increasing disposable incomes, along with rising health and environmental concerns are expected to be the major factors driving the growth of organic skincare products in the APAC region, especially India. The consumers are ready to spend on products if they are organic and can naturally boost their skin health. The surge in the aging population, increasing awareness of organic products, the growing millennial population, and more working women are the other reasons contributing to the growth of organic skincare in this region. On the whole, it can be projected that the Indian organic skincare market will grow and seems to have a promising future!
Views expressed above are the author’s own.
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