As per ASSOCHAM the market size of India's beauty, cosmetic and grooming market will touch 20 billion dollars by 2025 from the current level of 6.5 billion dollars on the back of rise in disposable income of middle class and more and more people aspiring to live good life and look good.
Points Highlighted were -
Tier 2-3 population too is joining the mainstream internet revolution.
Consumption pattern of cosmetics among teenagers went up substantially between 2005 and 2015 because of increasing awareness and desire to look good.
About 62% of young consumers in big cities prefer to buy online beauty and grooming products whereas, 45% of consumers tend to buy offline.
Premium brands are being pushed as mass market products.
Price barriers are also being broken both by the consumers(disposable income) and the manufacturers(for growth)
Herbal cosmetics industry is also driving growth in the beauty business in India and is expected to grow at a rate of 12%.
Men’s grooming and personal care market in India is outpacing the personal care market at large for growth.
Indian men’s grooming market’s rapid growth of more than 42% in the last 5 years.
Interestingly, men who fall in the age group of 18 to 25, spend more money on grooming and personal care products than women in India.
Key drivers behind recent market growth are -
• Rising Disposable income
• Competitive workforce Environment
• increasingly complex grooming routines
• Social Media
• Selfie Mania
• More Indian icons, such as Hindi actors and cricket players
• Young Population
Which one to succeed marketplace model or inventory model?