The size of India's cosmetics market will rise by almost a half to 1.4 billion dollars in the next two-three years as people get fashion conscious and more brands are launched, industry body Assocham said.
With increased awakening about cosmetics brands, which is evident even in rural India, the industry size will grow to around $1.4 billion from current level of $950 million, Assocham said in a press release.
It said despite high penetration of cosmetic items and new foreign brands foraying into the country, India's consumption of cosmetic and toiletries is far less than other Asian countries. The per capita consumption in Hong Kong is 50 times that of India, while Japan's consumption is 18 times.
Domestic cosmetics and toiletries industry has been growing at 15-20 per cent over the last few years, but India is a price sensitive market. Companies need to work out innovative strategies to establish a foothold here, it said.
"India's per capita consumption of cosmetics and toiletries for well-known branded products stands at 0.68 dollars as against 40 dollars in Hong Kong, 10 dollars in Malaysia and Taiwan, 12 dollars in Japan and 1.5 dollars of China," Assocham President Venugopal Dhoot said.
Hong Kong has the highest per capita consumption for cosmetics and toiletries products since it is the launching pad for such products for most Asian countries, he said.
He said 20 million consumers in India use branded products by Unilever, Procter & Gamble, Godrej and Dabur. The reason for low penetration of international brands in India is the price differential due to which foreign brands constitute only 20 per cent of the market.