Green Cosmetics Trend Pushes The Need For Sustainable And Clean Beauty Products

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Boasting a current position as the world's fourth-largest beauty market, India is primed for a significant upsurge, with experts predicting a 40% surge in its size by 2026. The Indian cosmetics market, already a $1.35 billion powerhouse in 2023, is projected to balloon to $2.3 billion by 2028, witnessing a remarkable compounded annual growth rate (CAGR) of almost 11% throughout this period. The cosmetics industry expects robust expansion signs in the coming years. The Indian cosmetics industry is flooded with foreign brands, but soon, in the coming five years, it will have a huge population attracting domestic brands. 

The Indian cosmetics products market size is estimated at USD 1.35 billion in 2023. It is projected to reach USD 2.27 million by 2028, registering a CAGR of 10.91% during the forecast period (2023-2028). Increasing purchasing power represents a key factor influencing market growth. According to World Bank data, consumer expenditure in India increased to USD 2.4 trillion in 2022, propelling the market demand. The demand for color cosmetics is being influenced as many people unleash the potential of cosmetics in their daily makeup routine. The transformation in the millennial and young generation lifestyle attributed to the increased influence of social media platforms creating more demand for color cosmetics products in the country. Consumers are discovering products and brands via advertisements and promotional campaigns on various social media platforms, including Instagram and Facebook. Before purchasing, they consider product reviews, other consumers’ recommendations, celebrity endorsements, expert blog posts, and social media comments. In addition, with the increasing internet penetration, the online market for purchasing cosmetics products has seen rapid growth in India in recent years. Furthermore, the demand for luxury cosmetics is increasing among millennials and Gen Z consumers, owing to their preference for grooming up regularly to look presentable and fashionable.

The cruelty-free and vegan beauty market has exploded globally and in India in recent years. Cosmetic manufacturers are opting for natural and environmentally friendly ingredients to manufacture products. The ‘green cosmetics’ trend pushes the need for sustainable and clean beauty products. Manufacturers and third-party e-retailers are taking an interest in launching or offering clean beauty in their product portfolio. Moreover, the Ministry of Health and Family Welfare of India has imposed the cosmetic testing ban, which is added to the new rule "148-C. prohibition of testing of cosmetics on animals, such that no person shall use any animal for the testing of cosmetics" in the existing Drugs and Cosmetics Rules. Therefore, with Gen Z reshaping the market for color cosmetics in India, owing to their broad experimentation with a variety of products and their planet-friendly approach, the demand for eco-friendly, natural, organic, and clean color cosmetic products is anticipated to rise in the coming years.

Online retailing plays a vital role in the sustenance of the cosmetics market in India. Online platforms help sell and offer a range of product portfolios, and brands can cultivate an identity to promote product launches and influence consumers. Brands are chasing Indian celebrities or influencers to target young consumers through endorsements. Online shopping is a convenient platform for consumers to buy products online, avoiding crowded stores. It gives customers the luxury of browsing and shopping for products 24/7 from the comfort of their homes. Moreover, these websites create opportunities for color cosmetic brands to rapidly shift toward e-commerce platforms that enable these beauty brands to showcase greater product visibility in various rural and urban regions in the country.

Speaking on the successful conclusion of Cosmoprof India, Yogesh Mudras, Managing Director, Informa Markets in India said, “ Cosmoprof India stands as the premier platform gathering for the dynamically shifting beauty market, showcasing exhibitors nationwide. Notably, Cosmoprof India witnessed a remarkable 20% growth in footfalls and an impressive increase of exhibitor participation by 44% as compared to last year. Cosmoprof India provided a strategic overview to both the development of the local industry and international trends and brand‐new solutions, owing to the presence of 5 country pavilions namely,  Australia, Korea, Italy, Taiwan, and UK. The 4th edition of Cosmoprof India, delivered impressive results. The show, dedicated to the fast‐growing Indian beauty market took featured over 450 brands from 19 countries and region of origin. Over 9,000 stakeholders from 55 countries and regions gathered at the Jio World Convention Centre in Mumbai, registering a 20% growth compared to the previous edition.” 

The beauty industry has experienced significant growth, reaching approximately $430 billion in revenue in 2022 and projected to reach $580 billion by 2027. This growth is attributed to the industry's resilience in the face of economic challenges and a changing macroeconomic environment. The beauty market is characterized by a shift towards "premiumization," with the premium beauty tier expected to grow at an annual rate of 8 percent. The competitive landscape is intensifying, with independent brands seeking to scale, and new challengers emerging. Consumer preferences are evolving, driven by younger generations, and the importance of sustainability, influencers, self-care, and new brand discovery is increasing.  E-commerce in the beauty industry has seen substantial growth, with a projected 12 percent annual growth between 2022 and 2027, he further added.

The industry's dynamics are shifting, requiring brands to reassess global strategies and adopt more nuanced and tailored approaches. Geographic diversification is crucial, with growth opportunities in emerging markets like the Middle East and India.  The top tier of the pricing pyramid, the true luxury and ultraluxury beauty market, is expected to double from $20 billion to $40 billion by 2027. The industry's growth map is changing, with slowing growth in China and increased local competition. The US market will become more crucial, with the Middle East and India emerging as new growth hotspots. The lines between beauty and wellness are blurring, with consumers seeking products that not only make them look good but also contribute to their overall well-being. Wellness-inspired products, such as skincare with probiotic ingredients, are gaining popularity. Gen Z consumers are scrutinizing brands for value, focusing on sustainability, diversity, and inclusion. They demand authenticity, transparency, and a brand story that goes beyond products.

Many new and independent beauty labels struggle to achieve meaningful scale. To scale successfully, brands must focus on omnichannel expansion, internationalization, and category expansion. Mergers and acquisitions will continue to play a major role in the industry, but the focus will shift from high-growth independent brands to those with innovative product pipelines and sustainable long-term growth. In conclusion, the beauty industry offers significant growth opportunities for both established leaders and challengers. Success will depend on developing and executing tailored strategies that align with the evolving dynamics of the beauty landscape.