Organic formulations boost India's skincare market

The facial care category is projected to rise the fastest.

The Indian skincare sector is expected to grow from $2.5b (INR178.8b) in 2019 to $3.8b (INR294b) by 2024, as consumers become increasingly inclined to organic skincare formulations, according to a report from GlobalData.

This translates to a compound annual growth rate (CAGR) of 10.5%. This will be majorly driven by growth in the facial care category, which is projected to register the fastest CAGR of 10.7% during 2019–2024. The category is closely followed by body care, which is expected to record a CAGR of 10.2% during the next five years.

Anchal Bisht, consumer analyst at GlobalData, explained that the rising interest in natural skincare, as well as the growing penetration of international brands in the country will benefit the sales of skincare products in India.

“Furthermore, exposure to pollution and the ensuing need to maintain a healthy skin is necessitating consumers to look for effective skincare products,” Bisht added.

The value share of India in the global skincare sector is expected to grow from 1.9% in 2019 to 2.3% by 2024, whilst the country’s share at the regional level is expected to climb from 3.6% in 2019 to 4% by 2024.

Convenience stores continue to dominate the Indian skincare sector, accounting for the majority share of 38.7% in 2019, followed by department stores with a share of 17.8%. Convenience stores also held the majority share across all categories in the same year.

The rising brand awareness amongst the affluent and urban consumers is set to drive the growth of the market in the country, Bisht noted. “Consumers are adopting sophisticated skincare routines and are including face masks and toners in their everyday use which is expected to contribute towards the growth of Indian skincare sector,” she said.