Indian market for high-end beauty products and services estimated at more than US$8B and growing at annual rate of 20%, driven by rising per-capita income and evolving consumer trends, according to new report

Nevin Barich

INDIA , November 26, 2012 (Commodity Online) – Personal care industry in India is witnessing robust growth amid economic slowdown. The Indian market for high end products and services is estimated at over eight billion dollars and is currently growing at an annual rate of about 20 per cent and is likely to cross $14 bn during the course of next three years on the back of rising per capita income and evolving consumer trends. The personal care industry has been growing at 13 percent per annum and valued at USD 5.7 billion its wellness service market was assessed at USD 2.9 billion in 2010 according to Gyan Research and Analytics. Grooming industry is witnessing 20 to 25 percent growth in India despite weak economic activities. India s economic growth was a mere 5.5 per cent in the first quarter of this year against eight per cent in the corresponding period of 2011 12. A quarter before the GDP grew just 5.3 per cent. According to Confederation of Indian Industry (CII) the Indian colour cosmetics and skin care markets have been increasing for the last two years and have recorded a growth rate of 20 percent in 2010. A study by Nielsen in 2011 found that 77% of the Indian women are willing to use their extra income in buying health beauty care products. Men s grooming products such as after shave hair creams shaving creams and others have a Rs 4000 cr market in India out of which deodorants constitute a major share. The deodorant market in India is worth about Rs.1300 cr most of the customers are men say reports. Also India s deodorant market is growing at 20 to 25percent. The top management in the luxury industry feels that going forward best returns would come through investments in luxury assets for the long term and luxury products in the short term about 66 per cent of CEOs opined that Indian economy is expected to improve in the short term temporarily owing to the recent reforms together with monetary and fiscal measures initiated by the government states a recent study by Assocham (The Associated Chambers of Commerce and Industry of India). Published by HT Syndication with permission from Commodity Online. For any query with respect to this article or any other content requirement, please contact Editor at htsyndication@hindustantimes.com

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