On average, skin care sold in India has risen by 17 per cent compared with last year, according to a new report by the National Retail Federation (NRF).
The report, published on Thursday, also revealed that more than half of India’s beauty brands and cosmetics brands are selling products from other countries, suggesting that companies are moving overseas to boost growth.
More than half the beauty brands sold in the country are from overseas, which suggests that these companies are looking to expand their footprint in the US, according the NRF.
While most of the companies in the top 20 selling beauty products in India are owned by Indian companies, some brands are owned and managed by foreign firms.
According to the report, cosmetics companies are spending more on their global brands than the Indian ones, with more than 80 per cent of the cosmetics brands in the Indian cosmetics market being owned by overseas companies.
The beauty brands that are also growing the most are makeup brands, cosmetics and fragrance companies, as well as nail care brands, the NRFs report said.
In 2016, the beauty industry had an annual revenue of Rs 3,943 crore and revenue per employee of Rs 2,874 per annum.
“This is clearly a sign of a change in market dynamics in India,” said Anil Bhatnagar, vice president, NRF India.
This is an indication that the beauty sector in India is taking up more and more foreign investment, he added.
The NRF report comes on the heels of a report from the US Department of Commerce, which found that Indian companies were the largest foreign investors in the beauty market.
The report said that the Indian beauty industry is expected to grow to $12.5 billion by 2019 from $11.7 billion in 2021, representing a 12 per cent increase from the previous year.
The Indian cosmetics industry was estimated to earn $11 billion in 2020 from foreign investments.