3. The market in figures
Source: Madras Consulting Services
3
4. Skincare
The skincare market value is estimated to be 410 million Euros (2005-06).
Production in 2004-05 amounted to 83,500 tons.
Product Market size (EUR)
Creams & Toners 210 million
Talcum Powder 113 million
Colour Cosmetics 87 million
Total 410 million
4
5. Skincare: sub-segments
Creams and toners account for the main sub-segment in the skincare category:
over 48% in volume terms & 51% in value terms.
The market is valued at 210 million euros (2005-06).
This sub-segment also includes “fairness creams” in particular, a market worth
166 million euros (2005-06). Hindustan Unilever Limited’s “Fair and lovely” brand
leads the market (70% share) followed by CavinKare’s Fairever (9% market
share).
Creams and toners also include curcuma-based creams, a mass-market product
(12 million euro value between 2005 and 2006) with Vicco Laboratories and its
Vicco brand as market leaders.
5
6. Skincare: sub-segments
Creams and toners also include “anti-ageing”, which is perceived as a luxury
product in India where Avon and Garnier Synergie are market leaders.
In India the talcum powder segment is part of the “skincare” category on account
of its significant penetration in the country.
The market is valued at 113 million euros (2005-06) and is dominated by mass
market companies such as H.U.L (with the “PONDS” brand holding a 53%
market share), CavinKare, Godrej, Colgate Palmolive and
Johnson & Johnson.
This market is particularly important in the South of India
where talcum powder is used as a cream.
6
7. Skincare: sub-segments
The make-up sub-segment or “colour cosmetics” is still small by global
standards. It is currently valued at 87 million euros (2005-06) but is growing
at a rate of 30% annually.
This sub-segment is dominated by lipstick and
nail varnish (95% in total).
The LAKME brand is the best seller in India.
Several international brands have also positioned
themselves on the market including Revlon,
L’Oréal Paris, Lancome, Nina Ricci, Shiseido,
Chanel, MAC, etc…
7
8. Haircare: markets and segmentation
The haircare market is valued at 725 million euros.
Segments Market size (EUR)
Oils 367 million
Shampoo 262 million
Hair dye 78 million
Conditioner 17 million
Total 725 million
8
9. Haircare: sub-segmentation
The production of haircare oils (in volume terms) is 80 million litres.
This market is valued at 367 million euros (2005-06) and growing by 8% a year.
72% of oils are coconut-based and MARICO is market leader.
9
10. Haircare: sub-segmentation
Shampoo is gradually substituting soap
in India (32% penetration in 2005) and 45%
40%
is worth 63,000 tons (sales volume). 35%
The shampoo market is estimated to be 30%
25%
worth 262 million euros (2005-06) and 20%
accounts for 36% of the haircare market. 15%
10%
5%
Packaging is customised and comes in 0%
bottles or sachets (70% of total consumption). HUL
P&G
Other
Cavin
Dabur
Kare
This segment also includes conditioners,
a market valued at 17 million euros.
The main players’ market share
10
11. Haircare: sub-segmentation
The hair dye market is an emerging one.
It is worth 78 million euros (2005-06) and is growing rapidly (25% a year).
Godrej is the dominant player with an 86% market share.
L’Oréal has been very instrumental
in the adoption of hair dyes,
which are not only used to colour
white hair but also for cosmetic reasons,
i.e changing one’s appearance.
11
12. Fragrances and deodorants
Few Indian nationals can yet tell the difference between deodorants and
fragrances.
Official statistics don’t make a clear distinction between the two either.
The fragrance market is estimated to be worth 262 million euros and growing by
25% annually.
The “select” segment is dominated by imported
foreign brands but the mass market segment
includes a few local players.
The deodorant market is valued at 227 million euros
(2005-06) and is growing by 20% a year. Leading
the market is Hindustan Lever with a 58% share.
12
13. Oral care
The oral care market is valued at 638 million euros (2005-06).
The toothpaste market is valued at 437 million euros (2005-06) and is growing at
a rate of 8% annually.
Colgate is the market leader (40% share).
The toothpaste market is valued at 104 million euros (2005-06) and is growing
by 30% a year.
13
14. Male grooming
The male grooming segment should not be overlooked as it is valued at
253 million euros and growing at a 24% annual rate.
Apart from shaving products, the outlook is bright for the “care” market
whether haircare or skincare segments.
Indian consumers are also very keen on spa treatments.
14
15. Soap
Soap penetration is estimated to be approximately 88% but consumption is
weak: 800 grams per capita vs 6.5kgs in the USA and 4kgs in China.
There are more than 200 soap brands in India and they are marketed by more
than 70 companies.
The market is valued at 909 million euros (2005 – 06) and is growing at a rate of
5% annually.
H.U.L is market leader with a 54% share.
15
17. Hindustan Unilever Limited (HUL)
HUL has been present in India for about 100 years.
Its 2006 turnover was 2.27 billion euros.
Products Brands
Talcum powder Pond, Lifebuoy
Creams and Toners Clinic Active, Fair & Lovely
Shampoo Sunsilk, Clinic All Clear, Clinic Plus, Lux, Ayush
Haircare oils Clinic All-Clera Oil, sunsilk Hot Oil, Ayush
Make-up Lakmé
Detergents Powder Wheel, Surf-Rin
Soap Breeze, Fair & Lovely, Liril, Dove, Pears, Rexona, Hamam, Lux, Lifebuoy, Ayush
Toothpaste Pepsodent, Close Up
Toothbrushes Pepsodent
Shaving Foam Denim, Axe
After-Shave Denim, Axe
Deodorants Axe, Rexona
17
18. Colgate Palmolive Pvt Ltd
Present in India since 1937, Colgate Palmolive’s turnover is
213 million euro (2005-06).
Products Brands
Creams and Toners Palmolive Brilliantine
Toothpaste Colgate Total, Colgate Gel, Colgate Herbal, Colgate Dental Protection, Colgate
Max Fresh
Toothbrushes Colgate
Soap Palmolive Extra Care, Palmolive Naturals
Shaving Products Palmolive
18
19. Godrej Consumer Products Limited (GCPL)
Godrej is part of a large Indian group with diversified products/services
and a 120 million euro turnover (2005-06).
Products Brands
Creams and Toners Fair Glow
Anoop haircare oils
Soap Godrej No 1, Natural, Cinthol, Fair Glow
Detergents Ezee Liquid Detergent
Colour/Hair dye Godrej Hair Dye, Colorsoft
19
20. Nirma Ltd
The company was founded in 1969 and
its 2005-06 turnover was 391 million euros.
Products Brands
Detergents Nirma Blue, Nirma Fabric Wash
Soap Nirma Lime Fresh, Nirma Beauty
20
21. Procter & Gamble Hygiene & Health Care Ltd
P&G had been trading in India since 1964 and achieved
a 104 million euro turnover (2005-2006)
Products Brands
Detergents Ariel Compact, Ariel Matic, Ariel, Ariel Power Compact, Gain, Tide
Shampoo Pantene, Head & Shoulders, Lively Clean, Rejoice, Pantene Pro-V
Razors 7 o’clock Ejtek Super Platinum, 7 o’ clock Ejtel Super Stainless, 7 o’clock PII,
Mach III
Shaving Foam Gillette Aeorosol, Gillette Shave Foam
Toothbrushes Oral B
21
22. Henkel Spic India Ltd
Created in 1987 in collaboration with Tamilnadu Petroproducts Ltd
Chennai & Henkel KgsA, Germany
The company achieved a 52 million euro turnover in 2005.
Products Brands
Detergents Henko Matic, Herko Stain Champion, Henko PowerPearl, Mr White
Soap Margo
Deodorants Fa Caribbean Lemon, Fa Aqua, Fa Exotic Garden, Fa Sunny Melon, Fa Sport,
Fa Purple Rain, Fa Spring Flower
22
23. Modi Revlon
Modi Revlon is a joint venture (74:26) between Modi-Mundi Pharma and Revlon.
Originally positioned as a prestige segment company,
Modi Revlon had to review its strategy due to other key players’
price-competitiveness, in particular Lakmé’s.
5 years after it launched in India, Modi Revlon has now
been repositioned as a mass market player.
Modi Revlon’s product range comprises make-up, haircare, deodorants,
talcum powder and mass market fragrances (Charlie and Fire & Ice).
23
24. Marico Industries
Marico Lts was founded in 1962 and has built its reputation in India
on food oils (Saffola), haircare and body oils (Parachute).
Parachute is a coconut-based body and haircare oil and is one of the most
popular and most widely distributed oils in India (with a 22% market share).
Marico is also present in approximately 20 other countries and
achieved a 183 million euro turnover in 2005-06.
24
25. CavinKare Pvt Ltd
CavinKare started operations in 1983.
Its turnover in 2006-07 was 99.6 million euros.
Products Brands
Talcum Powder Chik, Talc, Spinz
Creams & Toners Fair Ever, Mantra Fairness Cream, Nyle Herbal Cold Cream, Nyle Moisturising
Lotion
Shampoo Nyle, Chik, Meera Herbal Powder, Meera Badam Shampoo,
Karthika Shikakai Powder
Hair Dyes Indica
Perfumes Electrix, Spinz Deodorants
25
26. Emami Group
Emami Products, whether beauty products (talcum, essential oils,
day creams or shampoo) or OTC pertain to traditional Indian
medicine (ayurvedic) and target a mass market audience.
Emami’s turnover is 52 million euros (2005-06).
26
27. Reckitt Benckiser Ltd
Created in 1998 following a merger between Reckitt & Colman India,
a branch of Reckitt & colman PLC (UK) and Benckiser,
this company ranks as one of the main consumer goods suppliers in India.
Positioned as a cleaning homecare products as well as OTC (including Dettol,
Cherry, Harpic, Mortein, Disprin, Robin, Colin, etc…), Reckitt Benckiser
(India) Ltd launched VEET, the depilatory cream brand, in 2004.
Sales turnover: 174 million euros (2005-06)
27
28. Dabur India Ltd
Family-run and managed by Dr S.K Burman, Dabur India specialises
in the manufacture of health and beauty care products and in particular
ayurvedic products targeting the mass market (eg shampoos,
make-up remover and oral care).
Dabur also markets food spices and exports to approximately 50 countries.
The company’s turnover in 2005-06 was 239 million euros.
28
29. L’Oréal India Ltd
L’Oréal has been trading in India since 1990. Operating initially with the support
of a distributor, L’Oréal created its 100%-owned branch in 1994.
L’Oréal’s full range of divisions is now operating in India:
The “consumer” division (launched in India first) includes L’Oréal Paris
(with actress Aishwarya Rai as its ambassadress), Garnier and Maybelline N.Y.
“Professional Products” including L’Oréal Professionnel, Matrix and Kérastase.
“Active cosmetics” with Vichy and products distributed via 120,000 P.O.S.
The “Luxury products” division launched at the same time as the leading
Lancome brand in 2006 followed by Ralph Lauren, Cacharel and Armani.
L’Oréal India employs > 400 staff and its turnover multiplied by 5 in 5 years.
L’Oréal has identified India as one of its top 5 global markets. 29
30. Other players
Amway India
Avon
Ayur Herbals
Fem Care
Johnson & Johnson
Lotus Herbals
Modicare
Oriflamme
Paramount Cosmetics
Shanaz Herbals
The Himalaya Drugs Company
Vicco Laboratories
VLCC
30
32. Contributing factors to growth: economic indicators
6% average annual economic growth.
4% average annual per capita growth over the past 10 years.
70% of the population under the age of 35.
20 to 49 years-old age group predicted to grow by 7.1% over the next 10 years.
Every year, the 20 to 24 age group increases by 3 million. This particular age
group is the one enjoying the highest buying power increase.
32
33. Contributing factors to growth: distribution, labour, price…
Although highly fragmented (3% chains, 97% independent), the sector is likely to
become more structured in the years to come.
The large Indian chains have invested considerably over the past 2 years in this
sector, which is reporting a turnover in the region of 205 billion euros.
In view of India’s cheap labour, the export outlook is positive for the main players
in this sector.
Price is a determining factor in India. Indian consumers are thrifty (28% personal
saving rate*), know their prices and are very sensitive to price increases.
Indian consumers give priority to value-for-money and expect to obtain
maximum usage from a product with lower buying frequency than in Europe.
Indian consumers are also strongly influenced by advertising. 33
Source: Reserve Bank of India
35. The ingredients market
Market size: 200 million euros a year (source: S.H Kelkar).
Exports: 20 to 25% of the local production.
Main ingredients produced in India:
Mint-based products (eg menthol, peppermint oils); pine oil, lemongrass,
flower essences (jasmine and rose in particular) as well as spices.
Main Indian companies:
S.H Kelkar Ltd, Oriental Aromatics, Sachee Aromatics,
Khatri Perfumes, Ultra International, SHK Aromas
Main international companies:
Givaudan, IFF – International Flavors and Fragrances,
Quest International, Robertet, Mann, Drohme, Charabot
35
37. Launch strategy and barriers to entry
The legislation governing small businesses hasn’t been affected
by the wave of industrial reforms launched in 1991.
Foreign participation for joint ventures which manufacture “small business”
products is limited to 24% unless the company undertakes
to export half of its local production.
Fragrance production is earmarked for small Indian businesses (SSI) but
fragrance production involving formulation is not restricted to them.
It is possible to subcontract the production of fragrances to
a local firm within the framework of a know-how supply
with the local firm being paid on a percentage/royalty basis.
In which case, it is possible to create a branch (with 100% ownership).
This type of solution must be negotiated with the Foreign Investments
Promotion Board / Secretary for Industrial Assistance. 37
38. Import rules and regulations
Import products regulations: The “Drugs and Cosmetics Act, 1940” and the
“Drugs and Cosmetics Rules, 1945” (13th edition – 2001) and its amendments:
basic regulations governing cosmetic production, imports and distribution.
“Classification of Cosmetic Raw Material and Adjuncts – Part 2: List Of Raw
Materials Generally Not Recognized As Safe For Use in Cosmetics”
Bureau of Indian Standards, 2001 ref. IS 4707.
Under the Rules:
Cosmetics shall contain only approved dyes, colours & pigments & shall not contain certain chemicals, compounds etc.
Cosmetics can be imported only through certain specified seaports, airports, railway stations, etc.
Imported cosmetics may be subjected to tests & analysis & pending such testing cannot be disposed of by the importer.
License has to be obtained from the Licensing Authority appointed by the State Government for manufacture of
cosmetics.
License is granted subject to conditions such as qualifications of staff in the unit, maintenance of records, inspections, etc
Cosmetics have to adhere to the standards prescribed by the Bureau of India Standards (BIS). Labelling requirements
have been specified. Cosmetic containers have to adhere to these requirements.
38
40. Thanks to:
www.ubifrance.fr/cosmetiques
The information contained within this document was collected in 2007 and as such the in-cosmetics India team cannot be held
responsible for any inaccuracies or any market changes.
40
