Outlook for Personal Care Industry: An Indian Perspective
he Indian personal care industry has taken rapid strides in the last few years, moving towards premium products incorporating specialty ingredients in their formulation. However, a comparison with per capita consumption in China reflects the largely untapped nature of the Indian market. Favorable demographic factors and increasing beauty consciousness indicate high future demand for personal care products and specifically for active ingredients. Industry participants need to build greater awareness and distribution reach and develop products tailored for the Indian market. Key trends, including nanotechnology and green chemistry besides others, will influence their strategies. The eventual winners would be those who ensure better value offerings to meet the needs of the Indian consumer. Chemicals & personal care From soaps and shampoos in the morning to the overnight repair face creams, from the sunscreen products in summers to moisturising lotions in winters; personal care products literally touch our daily lives. The personal care products we use are in some measure the signature of our lifestyles and standards of living. . The awareness
about ubiquitous personal care products is perhaps matched only by the total ignorance or misinformation about the chemicals that make these products what they are. From the metallic salts of fatty acids used to make the common bath soaps, to the highend cosmeceuticals that combine the beauty related properties of cosmetics with the functional benefits of pharmaceuticals, chemicals (whether derived from natural or synthetic sources) are an integral part of personal care products. Specialty chemicals are widely used in personal care products as active ingredients in the form of emollients, foaming agents and stabilizers. Their performance characteristics like thickening, foaming, imparting smoothness and conditioning are the key functionalities sought in several personal care products. Indian personal care market The personal care market in India is estimated to be worth ~$ 4-bn. Personal hygiene products (including bath and shower products, deodorants etc.), hair care, skin care, colour cosmetics and fragrances are the key segments of the personal care market.
PRATIK KADAKIA, ABHISHEK NIGAM & ASHWIN RAO
Tata Strategic Management Group Nirmal, 18th Floor, Nariman Point, Mumbai 400021, India. Tel: +91-22-66376789; Fax: +91-22-66376600. E-mail:firstname.lastname@example.org www.tsmg.com
Each of these segments exhibits unique trends and growth patterns. For example, the largest segment of personal hygiene products, largely dominated by bar soaps, has grown at ~5% p.a. over the last five years. In comparison, the second largest segment of hair care products has seen a much higher growth of ~9-10% p.a. during the same period. The skin care market is relatively smaller and is growing at a high rate while moving away from basic creams and moisturizers to specialized products such as anti-wrinkle and dark circle removing creams. For example, the anti-ageing segment, though only
Figure 1: Indian market for personal care products
Chemical Weekly October 6, 2009
Female population (25-44 years) (mn) Personal disposable income per household($)
Female population (25-44 years) (mn) Personal disposable income per household($) Fig 2: Demographics & economic drivers, India vs China
2% of the skin care market, has been growing at a rate greater than 90% p.a. over the last few years. Key trends and growth drivers in India As in other parts of the world, the driving force behind personal care products has evolved considerably in India. Starting from purely health notions and moving on to fitness, the current trend is towards well-being coupled with beauty. In an effort to adapt to these changes, the industry has moved from basic products, such as...