The popularity of western culture is also driving the popularity of foreign brands.
The rising number of working women with rising disposable income is set to drive the Indian cosmetics and toiletries industry from $15.1b (INR1.06b) in 2019 to $22.4b (INR1.72b) in 2024, at a compound annual growth rate (CAGR) of 10.2%, according to a GlobalData report.
Haircare recorded the largest value sales in the sector at $4.38b (INR308.7b) in 2019. Meanwhile, the fragrances sector is tipped to record the fastest value growth at a CAGR of 18.9%, during 2019–2024, followed by makeup and feminine hygiene with 12.7% and 11%, respectively.
“With changing consumer lifestyle and standards of living, Indian consumers are opting for premium personal grooming products – a trend likely to fuel demand for high quality cosmetics and toiletries industry in the country,” GlobalData's consumer analyst Anchal Bisht said.
The report also also noted that western culture is significantly influencing Indian consumers, driving the popularity of international brands. Bisht said that this will benefit the sector's expansion in 2019–2024.
Convenience stores were the leading distribution channel in the Indian cosmetics and toiletries industry, with a value share of 47.4% in 2019, trailed at a distance by the hypermarkets and supermarkets, and department stores.
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