Beauty care market grows at 25-35%, says PwC

Hair and skincare products continue to dominate the country's wellness market in which colour cosmetics and fragrances are outpacing growth by 25 to 35 per cent, said a report released by Pricewaterhouse Coopers (PwC) and the Federation of Indian Chambers of Commerce & Industry (FICCI).

Increased presence across smaller cities and availability of extensive range of products at various price points has spurred overall category growth, the report said, adding,"While premium products are growing, they continue to be a small fraction of the market. Increased preference for branded professional beauty care providers who provide consistent consumer experience is boosting the organised segment."

Further, organised players have also started exploring incremental revenue streams, extending into branded products (e.g. Jawed Habib) or adding additional wellness services into their portfolio (e.g. Naturals, VLCC and Lakme offering spa services), it added.

Currently the market is estimated at Rs 59,000 crore in which cosmetic products contribute to nearly 60 percent of the segment and poised to touch Rs 95,000 crore in the next two years, according to a report. "The scope in the wellness market is immense.

Even a 1 percent increase in consumer expenditure can potentially generate an additional opportunity of Rs 600 crore for wellness players," VLCC managing director Sandeep Ahuja said.

Topline growth for most players continues to be driven by the addition of new outlets. New entrants include UK-based Saks Hair & Beauty chain of salons, the report said.

It pointed out that the salon category saw value growth slow down since last year as consumers showed an increased preference for relatively inexpensive non-surgical treatments over more expensive surgical cosmetic treatments.

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