From waking up in the morning to sleeping at night, every person involved with the cosmetic industry and beauty products. Every person uses at least a normal moisturizer cream or Vaseline in daily routine.
These all body care, hair care, and skin-care products come in the category of cosmetic products and the industry which deals with it is called Cosmetic Industry.
It is quite interesting to know about the brief detail of the cosmetic industry because there is a very huge market for cosmetic products where Big cosmetic companies have invested in the Indian market.
So, let’s check what we will discuss in this Blog:-
- History of Cosmetic Industry
- How to Start a Cosmetic Business
- Top companies in the Industry
- The market size and growth in India
- Trends in Beauty Products
- Frequently Asked Questions
The industry in which production, packaging, and distribution of cosmetic products take place is known as the Cosmetic Industry. All the products that use as skin-care, hair care, Body-care belong to this industry.
The cosmetic industry has a very large market size and growth rate. Hence, they increase fastly with high-profit margin. The cosmetic market industry mainly categories into 5 product segments:-
- Skin Care
- Hair Care
- Colour cosmetics
So, Let’s discuss these segments briefly:-
Skin Care Products:-
The products that are used to nourish and protect the skin are called Skin-care products. For example, Moisturizer creams, Body lotion, Fairness cream, cleansers, Vaseline gelly, etc are the Skincare products that are essentially used by most of the people.
Want to know about Best Skincare Products for your skin type. So read this Blog.
Hair Care Products:-
All the products that are used for caring and treatment of hair come in this category. For example, Shampoo, conditioner, hair oil are the most basic essential hair care product. Hair colours, hair spa cream, hair straightening cream, hair mask, cream for treatments are also the part of the hair care product industry.
Do you have Hair Problems? So read the blog Hair problems and their Treatments.
Colour Cosmetic Products:-
The products which are used for makeup purposes come in this category. For example, Maskara, Lipsticks, Foundation, Eyeliner, Eye shadow, eyelashes, etc are the products of Colour Cosmetics.
The personal care used for hygiene or basic grooming comes in this category. For example Soaps, hand-wash, sanitizers, shaving cream, etc are the products of this category.
Fragrance products are Products that enhance the fragrance of the body. Fragrances are among the oldest cosmetic products. Perfumes, Deo, Room-spray, etc are the products of this category. Body powder also comes to this category.
Do you want to open Day Spa center. So read all about this Business Plan.
History of Cosmetic Industry
The word Cosmetic is described by the Latin word “Cosmetae”. This word was used to describe Roman slaves whose function was to Bath men and women in perfume. In 10000 BC, in Egypte, men and women also used ointments and scented oils to clean and soften their skin and mask body odour.
In India, the heritage of Cosmetic and beauty product is being used since olden days. The use of herbal and Ayurvedic products is now in the trend. Firstly, In 1970, Shahnaaz Hussain was the lady who introduced Ayurvedic cosmetics to the world.
But the actual growth of the Beauty Industry started after economic liberalization in 1990. In 1991, many Beauty product companies invested in India. In 1996, Miss World Contest was held in India and sponsored by Godrej. After that, the Indian cosmetic market had strong growth.
How to Start a Cosmetic Business
To start a cosmetic business in India firstly you have to focus and follow the following points:-
1. Understand the Cosmetic Industry:-
The first step to enter any industry is, to understand that industry. So we have to analyze the industry’s category, product manufacturing, supply, Growth rate, market size, marketing strategy briefly.
2. Choose the Category and Product:–
Now it is the most important decision that you have to take for your business because it describes your business model.
Choose under which category and what products you want to deliver to your customers. Also, You have to think about the mission and vision (objectives) of your company or products wisely.
3. Apply for Licence and Legal documents for cosmetic products:-
To start the production and sale of any cosmetic product you have to take a license that is governed by “The drug and cosmetic act, 1940 and 1945 ”.
This license is valid for 5 years. You also need a NOC from Pollution Control Board. The total cost of a license is between ₹3600-7000 accordingly.
4. Select Manufacturing and Packaging methods for your cosmetic product:-
You have made a license and also decided on the product that you want to deliver to the consumers.
Now firstly you have to decide where and how to produce the product and for the packaging too?
If you have a budget to install a manufacturing unit then you can start it otherwise you can make products other manufacturing units. And then choose a packaging unit where you can make a complete product to sell.
5. Make a Marketing strategy:–
Now you should decide your Product price, Target customers, marketing plans & budgets, and also the location where you want to sell your product.
You have to also think about supply chain, funding, Break-even point, and other expenses.
Top Beauty Product Companies in India
Several international and Indian companies have invested in Indian Cosmetic Industry. So they know very well about the Indian consumption of cosmetic products. These Companies are:-
|L’oreal S. A.
|J R D Tata
|Lotus Herbals Ltd.
|Oriflame cosmetics S.A.
|Jonas & Robert
|Shahnaz Husain group
|Revlon Pvt Ltd.
|Joseph & Charles
|Bio Veda Action Researc
|Himalaya drug Co.
|L’oreal S. A.
There are also other cosmetic companies like MAC, Emami, Procter & Gamble, Ayur, Johnson and Johnson, Estee and Louder, VLCC, Nivea, Patanjali, Vini Cosmetics, Godrej, Gillette, and Dobur that have also acquired the Indian market.
Want to open a Online Beauty Product Store. Then read this blog.
The market size and growth in India of Cosmetic Industry
According to the report of TechSciResearch, India’s cosmetic market size was over $10441 million in 2018 and it will reach $25987 million by 2024. Indian cosmetic market projected to grow at a CAGR of over 16% accordingly.
Today’s scenario shows that the demand and consumption of Herbal and Ayurvedic cosmetic products will be increasing in India so fast.
Want to start a Home delivery of Beauty Services. So read complete detail about Beauty Service at Home Business Model.
Trends in Beauty Products
If you saw the last 5 years of the beauty industry you found that there has been a lot of change in every sector of the beauty industry.
Now new startups have come with new ideas and new technologies like beauty service at home, E-commerce of beauty products, etc. That shows the future growth and New Trends of the beauty industry.
In the cosmetic industry, some people now use an online platform to buy beauty products that are trending. The herbal and Ayurvedic products are also in trend between consumers because chemical products harm our skins.
In conclusion, I will say that the Growth of Cosmetic Industry in India is so high. It is increasing with a double-digit growth rate. You can also start your business in this industry.
Frequently Asked Questions
Ans:- Cosmetic Industry is a field of industry that deals with production, distribution, and sale of cosmetic products.
Ans:- As the population is increasing, the people who worry more about their health, skin, hair, and styling are also growing.
Working Women use 35% of their income in the beauty industry. Even Men are also using different types of beauty products, perfume, and deo nowadays.
Ans:- The global cosmetic industry is calculated at about $532 billion and it is estimated $805 billion by 2023 with a CAGR of 7.14% accordingly.
India’s cosmetic market size was over $10441 million in 2018 and it will reach $25987 million by 2024. Indian cosmetic market projected to grow at a CAGR of over 16% accordingly.
Ans:- Girls and women with age range of 20-35 are the main target customers for this business. Now a day Men are also targeted for this business.
Ans:- Skincare products, Haircare products are always in trends because these come in essential products for people. Colour Cosmetics like Lipsticks, Eyeliner etc are in trends for girls. Now a day Men concentric products are also in trend.