The world of entrepreneurship isn’t something new to India, given the array of top names making it to the global arena, transforming the country’s economic status in the process. However, the recent exposure of the business domain making it more accessible for aspiring women commendable.
While a few names of women achievers crop up, several fields are offering key roles for women. One such industry creating lucrative business opportunities is the Indian cosmetics manufacturing industry.
Market Size and Outlook of the Indian Cosmetics Manufacturing Industry
The awareness towards body aesthetics and beauty enhancements is rising among the masses. The Indian cosmetic industry is gaining significant momentum, and Indians are more willing than before to invest in beauty and wellness sessions. The current growth is estimated to be at 20% per annum in India with the industry touching $US 11 billion in 2017.
The fact that consumers have more disposable income with growing consciousness about external beauty and internal intellectual capabilities drives industry concepts to manufacture new products that meet diverse and unique needs. The nation’s cosmetics manufacturing industry is recording a year on year growth, and has the potential to reach $20 billion by 2025.
There’s a transformational shift in the way beauty is perceived. Along with women, the modern-day man is gaining an increased awareness about the importance of his appearance, and there’s a huge rise in the use of cosmetics and beauty products on a daily routine among metrosexual men.
The Indian cosmetics market is set to expand at a CAGR of 4.23% for the forecast period 2022-33. The rapid increase in internet penetration has also been a deciding factor for the exponential growth of the Indian cosmetics sector in the last 3-4 years.
The sharp increase in demand for these products has enabled the concept of third-party manufacturing cosmetics. This concept of white labelling lets a company rebrand beauty products manufactured by other companies as their own. The primary reasons for the increase in white labelling are:
- Expanded product lines to gain a competitive advantage
- Enhanced contracts that increase revenue
- Offer discounted sales
- Maintenance of the high-quality
Market Segmentation of the Cosmetics Industry in India
A cosmetics manufacturing unit setup in India typically works on a given set of segments that make it clear to understand the needs and benefits available.
- By category: Skincare, sun care, body care, personal hygiene & hair care products, deodorants & fragrances, makeup & color cosmetics
- By gender: Men, women & unisex
- By distribution channel: Specialty stores, pharmacies & drug stores, supermarkets & hypermarkets, online retail stores, and other distribution channels
Advantages of Starting a Cosmetics Manufacturing Industry in India
Starting a cosmetics manufacturing industry in India offers a series of benefits for both the brand and consumers. It helps you connect with the masses and offer customized solutions.
You can stand for something
Whether its your own brand or encouraging third party manufacturing cosmetics, you can make a lasting impact on the community. Starting a cosmetics industry is more about educating people about the health benefits available. People understand how their skin works and the steps they need to take to delay the aging process safely and effectively.
An exceptional financial opportunity
When it comes to the beauty business, the sky is the limit. When you stand for a specific health cause, manufacturing beauty products can become a passionate venture. It’s also a great way to build financial strength and convert your business into a billion-dollar brand.
Offer a personalized customer service
You can connect with customers on a personal level and offer customized solutions by starting a cosmetics manufacturing industry. You can offer instructions regarding how to use a particular product or help customers choose the best one suitable for their requirement. This way, you can build and enhance customer loyalty.
Be a role model and innovate
You can share your experience and inspire other women to transform their lives. It’s also a lucrative option to explore existing and new ingredients and innovate new products.
Top Profitable Ideas in the Cosmetic Industry
The cosmetics manufacturing unit setup comes with a host of profitable options that set the ball rolling in your favor.
- Aroma therapy
- Image style consultant
- Professional salon setup
- Direct cosmetic and skincare seller
- Start a beauty magazine
- Beauty products affiliate marketing
- Sell DIY appliances
- Setup a high-tech beauty spa
- Sell herbal beauty products
- Start a massage salon
- Beauty and skincare consulting clinic
Latest Market Trends of the Cosmetics Manufacturing Industry
The cosmetics industry is driven by innovative and purposeful trends like:
- Hyper-personalization for offering a comprehensive customer experience
- Beauty products formulated with natural and organic ingredients
- Eco-friendly packaging to protect the environment without causing changes to the products
- Diversity in every category of cosmetic products
Indian Women Entrepreneurs in the Cosmetics Manufacturing Industry
The Indian beauty industry is synonymous with female founders that include:
Vasundhara Patni, founder – Kiro Beauty
Her concept is backed by science and comprehensive research, and her innovation bridged the gap between beauty as a concept and individual awareness. Her brand is evolving rapidly and is offering personalized solutions for each issue.
Shubhika Jain, founder – RAS Luxury Oils
Shubhika invented the concept of conscious packaging that has taken the Indian beauty domain to greater heights. Her home-grown brand focuses on recyclable packaging that encourages reuse. Her mission has encouraged customers to return empty containers to ensure a sustainable environment.
Prasanthy Gurugubelli, founder – Daughter Earth
The unique brand Prasanthy developed is extensively driven by deep research and science proven to deliver exceptional results every time. Her brand focuses on educating customers about the ingredients that go into each product, and the exact result each blend offers.
Karishma Kewalramani, founder – FAE Beauty
This brand aims to normalize the concept “free and equal”, and is a far cry from the illusion of creating perfect-looking models. Her venture aims to eliminate the feelings of body shaming and curb insecurities. She has been successful in giving the brand a purpose and direction that offers new products on the way.
Taking Assistance from SolutionBuggy
Cosmetics manufacturing industry or cosmetics third party manufacturing undergo a thorough research to connect aspiring individuals with industry experts. SolutionBuggy carves a distinctive path in the beauty products manufacturing domain to bring the science and research that goes into every product.
We’re a flagship name among cosmetic formulation consultants taking a passionate approach to serve aspiring individuals, consumers, and the economy with endless commitment.