East India has emerged as a major hub for the cosmetics industry, accounting for over a third of all cosmetics sold in India in FY24 (Financial Year). Despite representing less than a quarter of the country’s households, the region has become a focal point for product launches and innovations.

This trend is driven by higher per-capita makeup usage and a preference for a diverse range of shades. With increasing online shopping and a growing working population, the cosmetics market in East India is poised for further growth.

East India Leads in Cosmetics Usage

According to a report by global consumer researcher Kantar, over 186 million pieces of cosmetics were sold in India’s top 10 cities last year, with East India leading in makeup usage per person.

Women in East India prefer a wide range of shades, including darker tones that are less popular elsewhere. Samir K Modi, managing director of Modi Enterprises, which sells the Colorbar brand, emphasized, “Women here wear makeup more regularly and experiment with a variety of shades. The northern region also shows significant usage, but East India leads in diversity of shades consumed.”

Lip products are particularly popular, with 65 million units sold annually, generating nearly Rs 1,700 crore in revenue. Face and lip cosmetics together account for around Rs 2,900 crore, or 70% of the industry’s value.

Despite the high volume of nail cosmetics sold, their lower cost means they generate about Rs 350 crore. Eye products are the smallest colour cosmetic segment, with 34 million units sold.

Strong Online Presence and Sales

East India’s cosmetics market also benefits from a significant online shopping presence. More than a quarter of cosmetics shoppers make purchases through e-commerce platforms, according to Kantar. However, only 14% of nail product shoppers buy online, likely due to the products’ fragile nature.

Walmart-backed Flipkart has noted its strong presence in the East, where per-capita consumption of cosmetics surpasses the national average.

In the east, the penetration itself would be higher, with more users, and then frequency would be higher too,” said Manjari Singhal, head of business at Flipkart. “These two parameters would start playing a role in the size of revenue being higher for geography. Also, geography-wise, if you look at metros and east, there would be a higher share of premium being sold,” she added. 

K Ramakrishnan, managing director of South Asia, Worldpanel Division, Kantar, pointed out that East India leads across all cosmetic sectors—lip, face, nail, and eye.

As per the report, the sales reached a significant high in Kolkata last year. The south is the only other region with over 50% penetration in this category. “With more than a quarter of customers buying online, the sector shows great potential,” he said.

The growing working population and rising income levels further enhance the market potential. “This is the perfect time for the sector to make a colorful splash,” Ramakrishnan added. Cosmetic brands are expanding their retail presence even in smaller towns, tapping into the region’s enthusiasm for makeup.

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Global Attention and Growth Projections 

International cosmetics giants like L’Oreal SA and Shiseido recognize India’s potential, with the country becoming a key growth driver for these companies. Earlier this year, these companies noted that India’s burgeoning population and inclination toward beauty products were significant growth drivers.

The beauty and personal care market in India is expected to grow at a compounded rate of 10% between 2022 and 2027, reaching $30 billion. This growth rate outpaces comparable markets like China and Indonesia.

Despite its lower per capita spending of $14 in the beauty and personal care category compared to $38 in China and $313 in the United States, India’s market offers significant growth opportunities.

With East India playing a crucial role, the region’s contribution to the cosmetics industry is set to increase. India is expected to account for nearly 5% of the global growth opportunity in the beauty and personal care sector.

East India’s prominence in the cosmetics market is evident from its high consumption rates, diverse product preferences, and significant online shopping activity. The region’s enthusiasm for makeup, combined with rising income levels and a growing working population, creates a vibrant market with immense potential.

As cosmetic companies expand their presence and innovate to cater to this demand, East India will continue to lead and drive the industry’s growth.

Image sources: Google Images

Feature Image designed by Saudamini Seth

Sources: Economic Times, Moneycontrol, News Bytes

Find the blogger: Katyayani Joshi

This post is tagged under: East India Beauty, Cosmetics Innovation, Makeup Trends, Beauty Industry, Colorful Splash, Online Shopping, Cosmetic Brands, Beauty Products, Indian beauty market, Makeup Lovers, Colorbar, Flipkart, L’Oreal SA, Shiseido

We do not hold any right over any of the images used, these have been taken from Google. In case of credits or removal, the owner may kindly mail us.

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