Indian Personal care Opportunities - 2017

• Publication date: December 2012
• Report size: 53 pages

SYNOPSIS The Indian economy, Asia's third-largest, has been growing briskly at above 8 percent for last couple of years with occasional hiccups. In the context of the global scenario, despite the worldwide economic slump, the personal care product market in India is one of the fastest-growing beauty markets, valued at USD 24.4 billion in 2010. The personal care industry is directly aligned with the population base. ...

SYNOPSIS

The Indian economy, Asia's third-largest, has been growing briskly at above 8 percent for last couple
of years with occasional hiccups. In the context of the global scenario, despite the worldwide
economic slump, the personal care product market in India is one of the fastest-growing beauty
markets, valued at USD 24.4 billion in 2010.

The personal care industry is directly aligned with the population base. With the median age at 25
years, India is among the world’s youngest nations, as compared to 43 years in Japan and 36 years in
the US. In addition, the country’s population base of 1.2 billion people is estimated to rise to 1.5
billion people by the end of 2030. Urbanization will also increase by 45 percent in the next 30 years.
India’s 1.2 billion people can be roughly divided into 250 million households. Of late, the Indian
consumers are looking for newer shopping experiences and products. Consumer concentration has
shifted from traditional offerings to new generational ones, for instance demand for soap cakes to
liquid soaps, shaving creams to foams and gels.

It is quite evident that the cosmetics and toiletries industry in the developed markets is close to
saturation and growth has slowed down. Meanwhile, countries such as India, with its growing
economy, offer a lucrative market for large multinationals. As per a recent study by the
Confederation of Indian Industries (CII), the Indian color cosmetics and skin care markets have been
increasing for the last two years and have recorded a growth rate of 20 percent in 2010. So this
market already experiences the entry of several brands, including MAC Cosmetics, Channel,
Givenchy, Versace, Red Earth, The Body Shop, Christian Breton, ArtDeco and MAX Factor during this
period. Several of the foreign players are expanding; for instance, Baccarose is expanding its Parcos
brand cosmetics stores, as are the MKP and Cosmos brands.

The objective of the report is to state that it is just the right time for global cosmetics and skin care
companies to participate in the growth story. Some researchers anticipate 25 percent growth rate in
the Indian personal care industry in the next few years. According to the Emerging Market Forum,
the per capita income of India is expected to increase by about 18 times by 2039, while disposable
income for households is estimated to grow three times by 2025. Globalization, rise in incomes,
greater awareness about self needs and a change in consumption patterns of households are the
accelerating factors behind this rapid growth. However, even with double-digit growth rates,
penetration of cosmetics and toiletries products is very low. Current per capita expenditure on
cosmetics is about USD 1, compared to USD 36.65 in other Asian countries. This low market
penetration for cosmetics and personal care products offers an opportunity to service 1.2 billion
people of the country. There is a huge scope for international and national Spa chain as Southern
India has the most of the spas of the country.

The second big opportunity is that some major European cosmetic retailers are looking for
distributors and third-party manufacturers to set up joint ventures in the country. In fact after China,
India is being seen as a strong manufacturing hub and a good source for natural ingredients. The
country’s personal care sector is characterized by high volumes and low prices of cosmetic products.
The ultimate winners would be those that ensure better value offerings to meet the needs of the
Indian consumer.

This report will facilitate the international and national players of personal care product sector.
Investor, retailer of beauty products, fitness chains, fitness equipment maker, beauty appliances
manufacturer, beauty product ingredient producer, banks or financial institution will get assistance
and benefit in their way to investment, expansion and entrance in Indian personal care market.
India’s B and C class towns are yet to see such focused approach from vendors and these towns has
mass-market product users. This is a segment that presents a big opportunity for brands both
national and international.


SCOPE OF THE REPORT

• Entire Indian Personal care Product and services industry with their market size and share
• Providing full assistance to the way investment, expansion and entrance in Indian personal
care market.
• Opportunities in various segments of the industry
• Outlook of the industry


KEY FEATURES DISCUSSED

• Indian & Global market outlook
• Growth drivers and trends of the industry
• Implications of the Union Budget 2012-13 on the industry
• Emerging fields and their growth trends
• Comparative Cost Advantage
• Key Investments and M&A activities in respective segments


WHY ONE SHOULD BUY

• Comprehensive outlook of the industry
• Detailed analysis of all the segments and their opportunities has been discussed
• Better understanding of the market vis-à-vis market prospects
• Better positioning of products and service

BENEFICIARIES OF THE REPORT

• International and National players of personal care product sector
• Investor
• Retailer of beauty products
• Fitness , Spa, Salons and Parlors chains
• Fitness equipment maker
• Commercial and Investment banks
• Beauty appliances manufacturer
• Individuals who track the industry progress
• Beauty product ingredient producer

Personal Care Industry in India

Table of Content

1. Executive Summary

2. Overview

2.1 Global
2.2 Indian

3. Industry Overview

3.1 Current Scenario
3.2 Market size and Trends
3.3 Growth Drivers
3.4. Critical Success Factors

4. Market Segmentation

4.1 Personal care Products
4.1.1 Beauty and Cosmetic Products
4.1.2 Hygiene Products
4.1.3 Feminine Hygiene
4.1.4 Personal care Appliances
4.1.5 Men’s Toiletries/Grooming Products
4.2 Personal care Services
4.2.1 Spa Industry
4.2.2 The Fitness Industry
4.2.3 Ayurvedic and Alternative Medicine Industry

5. Market Dynamics

5.1 Demand and Supply Analysis

6. Industry Forecast

7. SWOT Analysis

8. Policy, Rules and Regulations

8.1 FDI policies
8.2 Excise Duty
8.3 Service Tax
8.4 Value Added Tax (VAT)
8.5 Import Duty
8.6 Others

10. Investment

11. Issues and Challenges

12. Key Players

13. Outlook



List of Charts

Chart 1: Global Personal Care Segment - 2010
Chart 2: Outlook of Global Personal care Industry - 2017
Chart 3: Global Percapita Spending on Beauty care - 2010
Chart 4: Household Size in India, 2011
Chart 5: Market share of Beauty Care - 2010
Chart 6: Penetration of Hygiene Products - 2010
Chart 7: Per Capita Consumption of Hygiene Products -2010
Chart 8: Market Share of AYUSH - 2010
Chart 9: Alternative Medicine Market Segment - 2011
Chart 10: Segment wise Average Household Consumption
Chart 11: Outlook -Indian Personal Care Industry - 2017
Chart 12: Outlook - Employment Generation by Wellness services - 2015
Chart 13: Segmental Revenues of HUL - 2011



List of Tables

Table 1: Revenues of Key Personal care Appliance Manufacturers (in USD millions)
Table 2: Major Players in Personal care Services Sector -2011
Table 3: Approximate Cost Structure of the Indian Spa Services - 2011
Table 4: Average Cost Structure of the Indian Spa Industry - 2011
Table 5: Global Cost Structure of Spa Industry - 2011
Table 6: Cost Comparison of Product Segments - 2011
Table 7: Mergers & Acquisitions
Table 8: Financials of Talwalkar’s Better Value Fitness Limited (FY 2009 –FY 2012)
Table 9: Financials of Zydus Wellness (FY 2009 –FY 2012)
Table 10: HUL Personal care Products - 2011
Table 11: Financials of HUL (FY 2009 –FY 2012)
Table 12: P&G’s Personal Care Products
Table 13: Financials of Proctor & Gambel (P&G) (FY 2009 –FY 2012)
Table 14: Financials of Emami Limited (FY 2009 –FY 2012)
Table 15: Financials of Marico Industries (FY 2009 –FY 2012)
Table 16: Financials of Dabur India Ltd (FY 2009 –FY 2012)



List of Figure

Figure 1: Personal Care Industry Life Cycle
Figure 2: SWOT Analysis of Indian Personal Care Industry