The beauty services consumption in India has been increasing exponentially since last couple of years. Consumers are becoming more aspiration driven which has led to evolution of concept of grooming and beauty for both male and female segment in order to enhance their appearances. The spa segment which is a new entrant to the beauty and wellness industry has well integrated itself.
Rising affluence of middleclass segment has upgraded their consumption lifestyle and increased their willingness to buy beauty products and services. Beauty service providers have started expanding to Tier II and Tier III cities as these markets provide similar potential as their metro counterparts. Operational costs for service providers are also lower in these comparatively smaller towns. Service providers have also started exploring new venues for rejuvenation like airports and hotels.
The beauty services of India has been witnessing increased number of international players. Development of wellness tourism by Indian government has also boosted beauty industry in India. The market which was earlier women centric has started concentrating on male grooming and is coming up with large numbers of unisex salons. Existing players in the market are adopting franchisee route for expansion. The growth showcased by the industry has also caught the interest of private-equity and venture-capital investors who are funding expansion plans of businesses in the segment.
Beauty & Cosmetics (colloquially known as makeup or make-up) products are care substances used to enhance the appearance or odor of the human body. They are generally mixtures of chemical compounds, some being derived from natural sources, many being synthetic. Cosmetics include skin-care creams, lotions, powders, perfumes, lipsticks, fingernail and toe nail polish, eye and facial makeup, towelettes, permanent waves, colored contact lenses, hair colors, hair sprays and gels, deodorants, hand sanitizer, baby products, bath oils, bubble baths, bath salts, butters and many other types of products. A subset of cosmetics is called "make-up," which refers primarily to coloring products intended to alter the user’s appearance.
The manufacture of cosmetics is currently dominated by a small number of multinational corporations that originated in the early 20th century, but the distribution and sale of cosmetics is spread among a wide range of different businesses. The world’s largest cosmetic companies are The L'Oréal Group, The Procter & Gamble Company, Unilever, Shiseido Company, Limited and Estée Lauder Companies, Inc.
The global cosmetics industry is broken down into six main categories; skincare being the largest one out of them all, accounting for 33.8 percent of the global market in 2012.
The United States is the biggest cosmetic market in the world, with an estimated total revenue of about 54.89 billion U.S. dollars and employing about 53,619 people in 2012. The leading beauty cosmetic company in the United States in 2011 was Procter & Gamble, making up 14.2 percent of the market. The cosmetic industry seems to be continuously developing, now more than ever with the advent of internet companies. About 7.2 billion U.S. dollars was generated by online shops and mail-order household sales in 2010. Cosmetic sales are estimated to continue to grow in both the United States and other global markets, as many consumers feel that beauty products help in achieving social and economic goals.
The overall Beauty Business in India is growing phenomenally with the cosmetics market growing at 15-20% annually. The global cosmetic industry or Multi nationals have been captivated by India in a fascinating manner–the world’s second most populous country - over 1 billion people - even one percent of captured market at estimated rates is a huge sum for some companies. India has seen a growth in the cosmetics industry especially in the recent ten years.
Currently, the market size of the cosmetics industry in India is estimated to be worth US$1.5 billion, and is expected to double to US$3 billion by 2014. The industry has been growing at an annual rate of almost 20%, twice the rate in the United States or Europe. A market surge of 19% Compound Annual Growth Rate (CAGR) is anticipated till the year 2014.