Indian Cosmetic Industry Flourishes: Expenditure Surpasses Rs 5,000 Crore In 6 Months”

Delhi, 9th August 2023: A recent study conducted by Kantar Worldpanel has unveiled that Indian expenditure on cosmetic products amounted to approximately Rs 5,000 crore over the last half-year period. This surge in spending comes as the transition from remote work to in-office work has unfolded, leading to the sale of over 100 million cosmetic items such as lipsticks, nail polish, and eyeliner.

The study revealed that Indian consumers invested Rs 1,214 in coloured cosmetics within six months. Notably, 38 per cent of these purchases comprised lip products, closely followed by nail-related items. This underscores the diverse range of product preferences among consumers.

According to a report by the Economic Times, K Ramakrishnan, the Managing Director of Kantar Worldpanel Division’s South Asia branch, commented, “As an increasing number of women join the workforce, the penetration and utilization of this sector are poised to improve even further in the coming years.” He also emphasized the global prominence of Asia as a beauty trendsetting hub, with countries like South Korea shaping beauty trends worldwide.

The survey also highlighted a rising trend in working women significantly contributing to the cosmetics industry. The study found that these women allocate 1.6 times more of their expenditures to beauty products, both online and offline, compared to the average consumer. Notably, the third quarter of the 2023 fiscal year saw over 150,000 makeovers reported at Shoppers Stop.

Interestingly, this upward trend isn’t uniform across the entire nation but is rather concentrated in the top 10 cities, including Delhi and Mumbai. Of the total Rs. 5,000 crore spent, 40 per cent of products were procured online. This trend is being characterized as India’s “cosmetic boom,” spurred by the increasing influence of social media on young consumer behaviour, while retailer endorsements account for a third of the purchases.

Previously, consumers mainly favoured traditional beauty products like kajal and lipstick. However, recent times have witnessed a notable shift in preferences. Consumers now lean towards purchasing primers, eye shadows, and concealers, tailoring their selections for specific events and everyday use. Buying patterns also indicate that younger individuals are inclined to purchase primers and tinted lip balms, whereas older individuals lean towards lipsticks and nail polishes.