Rising awareness and changing lifestyle are key growth drivers
Organic living is seen as an established trend in developed countries and the concept is fast catching up in India with consumers opting for organic products for daily life. The trend of ‘Go Organic’ or ‘Live Organic’ is catching up in the skincare segment too. Increasing awareness towards beauty and wellness, and rapidly changing life-style are some factors that attribute to the growth in this sector. Organic skincare market in India is estimated to grow two-fold in next five years and cross the mark of Rs 1,000 crore by year 2020, according to promoter sisters of Azafran Innovacion, an integrated ‘Farm to Face’ player offering innovative skincare solutions.
Organics is one of the fastest growing segments in the global personal care industry. Organic personal care products are manufactured from natural ingredients extracted from plants, herbs and flowers under eco-friendly conditions. Currently the market in India is estimated at Rs 500 crore and growing at 20-25 per cent per year.
Commenting on the industry trend, Aditi Vyas, Founder Director, Azafran Innovacion said, “Cosmetics market in India is growing faster than many other developing countries. Though organic skincare market is still at a nascent stage in India, the growth and penetration in this segment is very remarkable.”
“Organic products are free from harmful synthetic chemicals, parabens, sulphates, artificial colours and fragrances. Growing urbanisation, rising concerns for health safety, increasing go green consciousness and growing consumer awareness towards the hazards of synthetic chemicals has fuelled the demand for organic personal care products. These factors will boost the market share of organic skin care products in India”.
“Observing the recent trends, Vyas further added “Increase in the disposable income of urban middle class is also a key factor for the growth of organic skincare industry. According to recent Credit Suisse Research Institute’s Emerging Consumer Survey study, average household incomes increased 10 per cent in India in 2014 after staggering for two years. This revival in consumer sentiments in organic skincare products has primarily been driven by urban India which now is going towards a healthy chemical free life.”
According to a report by Transparency Market Research “Organic Personal Care Products Market for Skin Care, Hair Care, Oral Care and Cosmetics – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2012–2018,” the global demand for organic personal care products was over $7.6 billion (approx Rs 50,000 crore) in 2012 and is expected to reach $13.2 billion (approx Rs 80,000 crore) by 2018, growing at a CAGR of 9.6 per cent from 2012 to 2018.