Herbal Beauty Industry In India
The beauty business is one which is constantly evolving and success will depend on innovations and keeping up with new trends.
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The beauty and wellness industry in India is booming, with a tremendous potential for growth. In fact, it is said to be growing twice as fast as markets of the United States and Europe. India is also the second largest consumer market in the world. No wonder foreign companies have been targeting the Indian beauty market!
According to a KPMG report, the size of India’s beauty and wellness market was around Rs.80,370 crores at the beginning of 2019. This includes the beauty products, beauty salon and spa businesses. The compounded annual growth rate of the Beauty & Wellness business in India has been around 18%. Currently, the beauty business in India is not only booming, but is expected to treble in the next five years. A prominent feature is that it is herbal beauty care that has driven the growth of the beauty business in India. The “back to nature” and “total well being” trends sweeping the world have increased the demand for holistic systems, like herbal and Ayurvedic beauty care, not only in India, but worldwide.
Going organic and eco-friendly are the trends that will mark the coming years, as far as the beauty business is concerned. We have been seeing herbal beauty products ruling the trends and now the products are going organic. There is a definite shift towards “natural” products that are free from parabens, sulfates, mineral oil and synthetic colours. Greater awareness of the link between good health and beauty is influencing the demand for organic and natural products. That is why wellness is becoming a part of the beauty business, with spa treatments being included in salons. According to Franchise India, “The organic products market in India has been growing at a CAGR of 25 per cent and it is expected to reach ₹10,000-₹12,000 Crore by 2020.”
The beauty business is one which is constantly evolving and success will depend on innovations and keeping up with new trends. New techniques and technology are also driving the growth in product innovation. Today awareness of beauty products and treatments is at an all time high in India. There is greater awareness of the ingredients in products and customers make choices based on their increased awareness. Apart from make-up cosmetics, many kinds of beauty products, for varied purposes, are now available, not only containing plant and natural ingredients, but also based on individual skin and hair types. From sunscreens and moisturizers, to specialized cleansers, face wash, toners, astringents, scrubs, masks, nourishing creams, serums, shampoos, conditioners, hair tonics, hair serums, hair dressing products, fragrances and so on are all part of the herbal beauty products business in India. Herbal make-up products are also available.
Future trends in the coming year will also be dictated by the demand for customized beauty care and personalized products. We are also in the process of building data bases for helping the selection of customized beauty products. My experience has been in Ayurvedic beauty care. Ayurveda may be an ancient system, but it is relevant to the modern world. Today, we can combine our Ayurvedic Inheritance with Artificial Intelligence and formulate custom-made products for each individual, while the customer will eventually find a personal skin or hair profile and buy personalized organic products online.
E-commerce and the internet have changed the way we do business. We are definitely going to see further growth in this aspect in the coming years. In fact, websites are already a dynamic way of providing information about your company, the products and services, as well as influencing the choices of customers. Internet traffic is bound to increase phenomenally and online portals will be ever-popular shopping destinations. During 2019, the herbal beauty business as a service sector is also offering great scope for employment and entrepreneurship. The retail format is also boosting the growth of the herbal beauty business, with malls becoming popular shopping destinations, not only in metro cities, but also in Tier 2 cities. Malls are making shelf space available to beauty brands.
With the “total well being” concept gaining ground, spa treatments are becoming more and more popular. In fact, service industries like spas and Ayurvedic centres are slated for growth. The West is also looking at India’s plant power and holistic beauty care with enlightened eyes. We have already experienced the popularity of Ayurvedic beauty care in the international market. With the “total wellness” and “back to nature” trends sweeping the world, the organic / herbal / botanical / Ayurvedic segment will continue to be the leading segment. In fact, the herbal and organic beauty business will continue to drive the growth of the beauty business in India. According to analysts there is “a positive long-term outlook on the global natural and organic personal care products market.”
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