India Beauty Market 'Fertile Ground'

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MUMBAI, India—Ingredients with functional benefits and multiple applications are positioned for great growth in the rapidly expanding personal care market in India, according to a new report from Frost & Sullivan. The analysis, “Strategic Analysis of the Indian Personal Care Active Ingredients Market,” finds the market for active ingredients earned revenues of $190.0 million in 2008 and estimates this to reach $329.8 million in 2014. Rising consumer awareness and the increasing ease of application are spurring growth of finished personal care products in different markets.

Natasha Telles, senior research analyst of chemicals, materials and food, Frost & Sullivan, noted, “UV ingredients, in particular, are fuelling the demand for end-product skin creams and skin lightening lotions. This trend is expected to continue as customers become more aware and manufacturers are compelled to use targeted ingredients for specific formulations.”

The Frost report suggests suppliers will need to differentiate their ingredients and functionalities to capitalize on the market opportunities. Possibilities include innovative delivery technologies or nutritional ingredients that deliver “beauty from within” effects.

“Personal care active ingredient manufacturers need to focus on the scientific efficacy and brand awareness of their products by constantly remaining a step ahead of market trends,” Telles added. “They need to aggressively maintain their first-mover advantage, given the large potential in terms of the raw materials provided by the Indian topography.”

There are additional challenges facing suppliers, including consumer preference for recognized Indian active ingredients over exotic ones; a competitive price-based market hindered by a lack of intellectual property on ingredients; and a deficiency of appropriate legislation hindering exports and imports.

“With increasing commercial and consumer interest in this market, it is important to strategically position products to create brand loyalty and thereby retain customers, creating product niches that will reduce the intensity of competition,” Telles said. “Showing superior ingredient backing through academic research and clinical trials would result in customers developing ingredient as well as supplier loyalty, enabling participants to distinguish their products.”

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