Looking good and presentable is next to breathing for humans. Cosmetics and skin care products are part of everyday grooming for both men and women. Protecting and preserving the skin is essential to good health and great booster of a person’s self-esteem.
Without any reservations of time, occasion or place, a translucent glass is enough for one to check himself up -- whether it’s in the lift, the rear mirror of your car or your neighbour’s window slide. And women have played a vital role since time immemorial in driving this industry to great heights.
According to a survey taken by feelingunique.com, women are not only reluctant to reduce their spending on cosmetics but when their purses come under pressure they are more willing to scrimp and save on food, according to new surveys.
Women invest their time as well as their hard-earned cash on their looks, with the average British woman spending more than two years (840 days) of her life in front of the mirror, according to the survey.
Siobhan McDermott, head buyer, feelunique.com, claimed that the industry was growing despite the credit crunch.
The Indian cosmetic Industry has witnessed rapid growth over the last couple of decades. Indian women between the ages of 15 and 44 years buy more than their expected share of make-up products, although the degree of over-representation decreases with age. Whether women know the application to use the makeup or not, they surely own sufficient variety and fancy dressingup.
Beauty cosmetic products that are manufactured in India include an extensive range of make-up cosmetics and toiletries like skin creams and lotions, perfumes, lipsticks and lip gloss, nail varnish, toothpastes, deodorants and eye and face make-up products to cite a few examples.
The Indian Cosmetics & Personcal Care market was around Rs 4800 crore in 2009 and is growing at 14-15 per cent year on year, according to an analyst.
The best definition of the term “Cosmetic” is that contained in the US Federal Food, Drug and Cosmetic Act of 1938, which stipulates that the term cosmetic means (1) articles intended to be rubbed, poured, sprinkled or sprayed on, introduced into, or otherwise applied to the human body or any part thereof for cleaning, beautifying, promoting attractiveness or altering the appearance, and (2) articles intended for use as a component of any such articles; except that such terms shall not include soap.
Cosmetic preparations may exert a four-fold action, namely, decorative, psychological, social and clinical.
Cosmeceuticals represent the marriage of cosmetics and pharmaceuticals. The clinal effect that cosmetics exert may be considered under cosmeceuticals. Cosmeceuticals are cosmetic products having medicinal or drug like benefits and able to affect the biological functioning of skin owing to the type of functional ingredients they contain. These products improve the functioning/ texture of the skin by encouraging collagen growth by combating harmful effects of free radicals, thus maintaining keratin structure in good condition and making skin healthier.
For example, a shampoo is a cosmetic because its intended use is to cleanse the hair. An anti-dandruff treatment is a drug because its intended use is to treat dandruff. Consequently, an anti-dandruff shampoo is both a cosmetic and a drug. Among other cosmetic/drug combinations are toothpastes that contain fluoride, deodorants that are also anti-perspirants, and moisturisers and makeup marketed with sun-protection claims. Such products must comply with the requirements for both cosmetics and drugs according to the FD&C Act.
Cosmeceuticals are cosmetic products with biologically active ingredients purporting to have medical or drug-like benefits. Dermatological research suggests that the bioactive ingredients used in cosmeceuticals do indeed have benefits beyond the traditional moisturiser.
The FD&C Act does not recognise any such category as "cosmeceuticals." A product can be a drug, a cosmetic, or a combination of both, but the term "cosmeceutical" has no meaning under the law.
Gobally, changing trends have been witnessed in the cosmetic business. Research and development drives have resulted in an increased number of innovative high-tech products that influence the skin texture and colour. Cosmetics are available in the form of organic cosmetics, mineral cosmetics and even environmentally friendly cosmetics to cater to an overwhelming demand for such products.
The manufacturers mostly cater to the great demand for cosmetics and toiletries that fall into the low or medium-price categories. Still there is a range of premium brand and super premium brands that charge accordingly and work as efficiently on the skin serving the purpose of usage.
The major players in the segment are Sante Mernaud, Ponds, Lakme,VLCC, Lotus Herbals, The Himalaya Drug Company, Neharika Exports, Velvette International, Johnson Smith, Shannaz, Jassons, Garnier, and Naturals. There is also a huge demand for hair colours and this is dominated by Schwarzkoph, L'Oreal, Wella and Godrej. In beauty and wellness, India is gaining ground. There is mushrooming of beauty clinics and people of all ages have a growing awareness about the range of cosmetics, therapies for dandruff, hair fall, sebo control treatment, split ends, dry hair and dry scalp treatments, straightening, spa treatments, acne treatments, skin lightening and pigmentations.
A visible trend is the growing number of unisex beauty parlours which is a clear indication that it is not just women but men too who are taking increasing interest in grooming. Consumers are asking their dermatologists and trichologists for solutions to their problems. While a lot of internal medicines are available, most of the topical solutions lack aesthetic value and appeal.
Skin whitening:
Fairness is one that everyone dreams about, no doubt how fair people look. At some stage in their life they do wish for more and try getting fairer therapies. Attaining a light skin complexion is one of the principal aesthetic criteria among Asian people and India is indeed a big market for companies into this business. It is also a positive socio-cultural indicator. Not only women but there are equal number of men using fairness creams and other bleaches for gaining a fairer complexion.
Personal care:
With a slew of products such as fairness creams, moisturizers, toners, shower gels and more, what is changing is not only the face of most Indian consumers, but that of the personal care industry in India as a whole. According to a report by Datamonitor, ‘Emerging Opportunities in the Indian Personal Care Industry,’ the total Indian personal care market is worth close to Rs 27,000 crore and grew at a CAGR of about 10% over the period 2006-10. Also, product categories such as personal hygiene and hair care products accounted for more than 60% of the total market size as of 2009. Apart from these two categories, the growing appreciation of personal grooming and styling among Indians has resulted in a substantial rise in the demand for products such as facial creams, hair colorants, styling gels and deodorants.
Rahul Ashok, Consultant, Consumer Markets, Datamonitor India states, “Over the last decade, the desire to look well-groomed and attractive has increased significantly among Indians since it is associated with increased confidence, positive personal traits and believed to open up better social and professional opportunities in life.”
Going Green:
In recent years, a significant shift has been observed in global patterns of consumer demand. The market for “green” solutions in the home and personal care segments is growing rapidly. The growth stems from increasing consumer awareness about the impact products have on their personal well-being, but also public health, society, and the environment. As consumers are increasingly concerned with environment, safety, societal, and personal well-being impacts of products they buy, the market for "green" solutions in the personal and home care / I&I segments is growing rapidly.
If manufacturers in the personal and home care segments as well as in the I&I market are to be successful, they have to offer products which deliver excellent performance, yet also serve this global “ecoethics” trend. Natural, renewable raw materials combined with an outstanding ecological footprint are one of the keys to achieve success in the markets.
The trend in cosmetics and toiletries towards botanical ingredients also poses challenges for preservatives since these organic materials are especially vulnerable to attack by an array of microbes, and may be tainted with bacteria. Although anti-microbial agents comprise a small portion of total finished product weight, the selection and loading levels of preservatives are crucial to the safety, shelf life and performance of the finished product.
Health & Wellness:
With increased health awareness, Indian consumer is also following the global trend of “Go healthy and be well” which has led to rising demand for H&W products in India. Many domestic and international FMCG companies are aggressively looking to tap this growing demand of the health & wellness conscious Indian consumers.
The industry, which is currently reported as Rs 11,000 crore, is expected to remain buoyant and has potential to sustain a compound annual growth rate (CAGR) of approximately 35 per cent for the next five years, according to a latest study report. The wellness industry can be bifurcated into seven core segments of allopathy, alternative therapies, beauty, counselling, fitness/slimming, nutrition and rejuvenation, explains that the rejuvenation services such as spas, alternative therapies, ayurveda treatments and beauty services are expected to show growth rates as high as 30 per cent of the overall growth.
Market surveys by management schools are indicating that the cosmetic and beauty products market in India is expected to boom in the next five years. There are several international players more so from Europe and the US who are on the lookout for distributors and joint venture partners to set up third-party manufacture and packaging in India. There is also a growing interest among international cosmetic giants to outsource their manufacture to India. Globally Italian companies have already commenced production of many of their products from Brazil and China. India is another location which will soon be converted in to a cosmetic production hub. The primary reason is the cost and availability of manpower.
Challenges in the cosmetic market is that there is an absolute failure on the part of the industry to present a case to the Union government for framing quality regulations for both the domestic and exports. There is also a need for stringent import regulations to correct the penetration of spurious or sub-standard products into the country which may cause more harm to consumers health.
Consumer analysts, marketing experts and the World Health Organization (WHO) would all agree: actively enhancing mental and physical wellness will be one of the most important issues in the coming years. The wellness trend is closely linked to the convenience concept, which values the increased comfort and other additional benefits that can be achieved by using time more efficiently. Another important aspect is sustainability: both products and manufacturing processes should be in line with man and nature. The wellness trend: health, well-being and convenience.
