BEAUTY AND PERSONAL CARE IN INDIA - ANALYSIS

Country Report | Apr 2021

EXECUTIVE SUMMARY Market Sizes

COVID-19 impact on beauty and personal care Sales of Beauty and Personal Care
Retail Value RSP - INR million - Current - 2006-2025
After seeing solid retail volume growth and even stronger current value growth for
most of the review period, beauty and personal care hit a roadblock in 2020 due to
COVID-19. Retail volume growth only just managed to stay in positive territory, whilst 1,047,822 Forecast
current value growth was only marginally higher, as consumers traded down across the 2,000,000
board. The emergence of the virus in the country led the government to implement a
lockdown to prevent its spread, which involved the closure of non-essential retailers
and entertainment venues, people working and studying from home where possible,
and restrictions on movement both domestically and internationally. The stringent 1,500,000
lockdown measures also led to supply shortages, due to challenges at ground level with
the inter-state transport of goods, and migrant workers going back to their home towns
leading to a shortage of staff in manufacturing and retail. Even after the lockdown was
eased by state according to the level of infection, many consumers maintained the 1,000,000
same home seclusion habits to remain safe.
Impacts varied across beauty and personal care, with one of the most notable being
greater consumer price-consciousness due to concerns over jobs and incomes. This led 500,000
some consumers to trade down from premium to mass products, and even to trade
down to cheaper references within the mass segment. Some even stopped purchasing
non-essential products altogether, or returned to using more traditional products, such 0
as Fuller’s earth and chickpea flour for washing babies. Necessities, mainly personal 2006 2020 2025
care categories within bath and shower, oral care, hair care and skin care, remained
relatively resilient to the impact of the pandemic in comparison with those such as
fragrances, depilatories and sun care, which witnessed registered current value Sales Performance of Beauty and Personal Care
declines in 2020. From consumers’ perspective, necessities which ensure health and % Y-O-Y Retail Value RSP Growth 2006-2025
wellbeing, such as bar and liquid soap and hand sanitiser, took precedence over
fragrances due to higher hygiene standards as a result of COVID-19 and limited social
occasions. Baby and child-specific products also saw a limited impact, as parents 0.7% Forecast
prioritised the needs of their children over their own needs. 20%

COVID-19 country impact

India’s lockdown came into effect from 25 March 2020. All forms of movement were 15%
restricted for consumers, apart from those classified as essential workers, including
medical workers, police and grocery shop owners. For other people, leaving home was
only permitted to obtain groceries and medicines. All states closed their borders, with
only the movement of essential goods being allowed. All non-essential shops were 10%
also required to shut from 25 March 2020. The only commercial outlets allowed to
remain open were grocery retailers (including traditional grocery retailers and, to some
extent modern grocery retailers) and chemists/pharmacies. All schools were closed, 5%
with classes taking place online if required. All businesses regarded as non-essential
were asked to shut, including both manufacturing and distribution operations. The only
ones allowed to remain in operation were packaged food manufacturers and
businesses that deal in essentials such as medicines and hygiene products. In terms of 0%
employment, low-income workers were the worst affected, as these are typically daily 2006 2020 2025
wage earners and migrant workers. Within the skilled workforce, those able to work
from home were not laid off, but there were numerous instances of salary cuts.
The lockdown imposed on 25 March was extended twice, reaching 3 May 2020. From 4
May 2020, the government then categorised areas as green, orange and red zones.
Businesses in the green and orange zones were allowed to open with certain
restrictions in place, such as maintaining social distancing. In red zones, however,
business operations remained heavily restricted. After nearly two and a half months of
stringent lockdown in India, the central government announced Lockdown 5.0 from 1
June. Shopping centres, restaurants and religious places were allowed to reopen in
various states, except in containment zones, with certain restrictions. Bars and pubs
were initially excluded from reopening in India. However, even though these outlets
have now been allowed to reopen, consumers remain sceptical about visiting such
places, as it generally involves close interaction with other people.
Although the tight lockdown regulations started to be eased in most parts of the
country from June 2020, there have been intermittent lockdowns and restrictions on
movement in various pockets of the country, especially after the strong resurgence of
cases from the beginning of January 2021 due to the emergence of new variants of the
virus. Globally, India remains amongst the three worst-hit by COVID-19 in terms of
infections. COVID-19 will continue to have an impact in India in the first half of 2021.
Home seclusion has become the new norm, and people will initially remain reluctant to

© Euromonitor Interna onal 2021 Page 1 of 5

step outside to shop for new products. The situation has also hugely impacted the
already struggling economy of India, which has reduced per capita income in the
Sales of Beauty and Personal Care by Category
Retail Value RSP - INR million - Current - 2020 Growth Performance
country. However, the country started rolling out a massive vaccination programme
from early 2021, beginning with healthcare and frontline workers, followed by people
Baby and Child-specific Products
aged over 50, which will lead to a gradual return of consumer confidence. 43,706.2
Bath and Shower
Company response 266,721.7

Despite seeing a slight value sales and share decline, Hindustan Unilever remained the Colour Cosmetics
88,297.5
strong leader in beauty and personal care in 2020, and the only player to hold a double-
digit value share. It has leading brands such as Fair & Lovely, Lifebuoy, Dove Lux, Clinic Deodorants
39,004.9
Plus, Lakmé and Pond’s, amongst many others. Its share decline in 2020 was mainly due
to the fall in sales seen by Fair & Lovely in skin care. With the Black Lives Matter Depilatories
20,054.2
movement leading to criticism of lightening and whitening creams and associated
terminology in beauty and personal care, consumers moved away from brands with Fragrances
22,890.2
such negative connotations. Unilever is therefore in the process of rebranding Fair &
Lovely as Glow & Lovely, with many other players following suit by either rebranding or Hair Care
231,783.2
withdrawing products altogether.
Men's Grooming
114,366.2
As an immediate response to the COVID-19 pandemic in 2020, companies ramped up
their production of hand sanitisers and bar and liquid soap through existing or new Oral Care
127,748.1
facilities. Other companies which did not previously have a presence in these
categories also quickly pivoted to manufacture hand sanitisers and hand wash due to Oral Care Excl Power Toothbrushe...
127,748.1
the surge in demand. This transition was easier for companies with a fragrances
portfolio as they require the same raw material, isopropyl alcohol. However, food, Skin Care
151,659.3
beverage and apparel companies also launched such products to help meet the
explosion in demand. Donating to and supporting communities who were on the Sun Care
5,186.2
frontline of the pandemic, as well as institutions fighting the pandemic, was also a
priority for many beauty and personal care companies. Premium Beauty and Personal Care
44,289.4
Globally, leading beauty specialist retailers encouraged their in-store beauty advisors Prestige Beauty and Personal Car...
to go digital and livestream videos of skin care regimes and make-up tutorials across 43,792.3
their social media handles, since their physical outlets were temporarily shut due to Mass Beauty and Personal Care
COVID-19 lockdowns. In India, beauty brands were quick to use different social media 804,959.8
channels to keep their customers engaged. However, companies took a more sensitive Dermocosmetics Beauty and Person...
and holistic approach towards branding, even though they faced financial pressures, as 2,435.4
it was essential to put people over profits to ensure long-term gains. With anxiety and -30% 0% 25%
stress at an all-time high, brands were cautious about the content they put out, as
BEAUTY AND PERSONAL CARE 1,047,821.7 CURRENT % CAGR % CAGR
profit-driven content or messages perceived as insensitive might adversely impact YEAR % 2015-2020 2020-2025
their brand image and reputation. This was crucial as the power was shifting into the GROWTH
hands of consumers in India, as purchasing decisions were increasingly influenced by
online user reviews, community forums and recommendations from family and friends,
rather than in-store advertising, brand communication via social media and
discounting. Competitive Landscape
Retailing shift Company Shares of Beauty and Personal Care
Many modern trade outlets, such as hypermarkets, supermarkets and department % Share (NBO) - Retail Value RSP - 2020
stores, are located in shopping centres, which were forced to shut during the COVID-19
lockdown from March, whilst other stand-alone modern trade outlets operated at Hindustan Unilever Ltd 21.4%
limited capacity. As a result, the value shares of these distribution channels were Colgate-Palmolive India ... 5.3%
negatively impacted in 2020. Chemists/pharmacies were allowed to remain open, as
Marico Ltd 3.9%
they were considered as essential retailers, which led chained chemists/pharmacies to
expand their personal care SKUs during the initial phase of the pandemic, and this L'Oréal India Pvt Ltd 3.6%
channel therefore saw a slight share increase. In order to avoid crowded areas, more Godrej Consumer Products... 3.5%
consumers also visited nearby neighbourhood stores (independent small grocers),
which provided some cushioning to this channel and increased the share of traditional Dabur India Ltd 3.4%
grocery retailers. Reckitt Benckiser (India... 3.3%

However, it was e-commerce that witnessed the highest growth in distribution share in Johnson & Johnson (India... 2.8%
2020. Online shopping and home delivery services saw a rise due to the temporary Wipro Consumer Care & Li... 2.7%
closure of beauty specialist retailers and department stores, in addition to a shift in
consumption from beauty, hair and nail salons to at-home consumption. Although a Patanjali Ayurved Ltd 2.5%
move towards e-commerce was already evident before the pandemic, the closure of Himalaya Drug Co, The 2.3%
retail outlets and fear of infection even after reopening led to a stronger influx of
Gillette India Ltd 2.1%
consumers to e-commerce. They valued the convenience and safety of online shopping
and home delivery when they were unable or unwilling to leave their homes. Procter & Gamble Home Pr... 1.6%
Companies therefore expanded their online/digital initiatives, for instance L’Oréal ITC Ltd 1.6%
started its own YouTube channel, “Lockdown Binge”, whilst some companies partnered
with various third parties to provide home delivery. The rapid shift to the digital and Emami Ltd 1.5%
online world, although an immediate impact to the pandemic, could result in long-term Nivea India Pvt Ltd 1.3%
changes to the distribution of beauty and personal care products, as even older
generations become more comfortable and adept with online shopping, and rising Vini Cosmetics Pvt Ltd 0.9%
rates of internet penetration enable more consumers to transition online. Bajaj Consumer Care Ltd 0.8%
Oriflame India Pvt Ltd 0.8%
What next for beauty and personal care?
Others 35.0%
Beauty and personal care is expected to see a rebound to stronger retail volume and
current value growth rates in 2021 and for the rest of the forecast period. The industry
started to see some level of recovery during the last quarter of 2020, and although a
rise in COVID-19 cases was seen in some states at the beginning of 2021 due to the
emergence of new variants, growth is expected to bounce back later in the year as the
vaccination programme progresses and consumers regain their confidence in going

© Euromonitor Interna onal 2021 Page 2 of 5

outside of the home and spending. Growth will be supported by stable demand in Brand Shares of Beauty and Personal Care
necessity categories, higher standards of hygiene, a return to spending on non- % Share (LBN) - Retail Value RSP - 2020
necessities amongst some consumers along with economic recovery, and the start of a
return to the premiumisation trend, with more people looking to trade up once again. Colgate 3.5%
Fair & Lovely 3.0%
Although depilatories, fragrances and sun care are set to see double-digit current value
CAGRs in the forecast period, this will mainly be due to recovery from their poor Dettol 2.8%
performances in 2020. Colour cosmetics is also expected to see a strong recovery after a
Lifebuoy 2.7%
major slowdown in growth in 2020. Consumers will be keen to return to their previous
socialising and purchasing habits when it is safe to do so, with premium colour Dove 2.7%
cosmetics set to see a particularly strong increase as people trade up, aided by the Santoor 2.6%
availability of smaller references at cheaper prices. A greater focus on skin care regimes
and preventative skin health is expected to maintain a good performance for skin care, Lux 2.3%
with premium products set to do well from a lower base. Premium Ayurvedic brands Parachute Coconut Oil 2.1%
are likely to do particularly well, due to their holistic approach to wellbeing.
Johnson's Baby 2.0%
The pandemic has made it vital for brands to focus on digital acceleration, but there is Patanjali 1.9%
still a long way to go for companies to enable new technologies in their businesses,
such as AR/VR. These are still quite nascent in India, but in the case of pandemics and Godrej No 1 1.7%
other situations where store-based trading cannot take place, these tools, such as Lakmé 1.3%
virtual make-up try-on, provide an alternative to (and can mirror) in-store experiences,
Clinic Plus 1.2%
providing some cushion to businesses.
Closeup 1.2%
Sustainability took a back seat in 2020 due to the pandemic, as companies put people
Pond's 1.1%
first. However, building stories or retail experiences around sustainability will resound
and connect better with the younger population and will go a long way to ensuring Himalaya Herbals 1.0%
growth in the future. For instance, domestic Ayurvedic organic brand SoulTree offers Pears 1.0%
products in sustainable packaging. In 2021 it also launched India’s first 100% solar
powered beauty and wellness store, which follows the brand’s aim to be ethical and Fogg 0.9%
eco-friendly as it was constructed using biodegradable materials, non-plastic fixtures Cinthol 0.9%
and reclaimed wood.
Others 64.0%
Chart 1 Beauty and Personal Care Value Sales Growth Scenarios: 2018-2025
5-Year Trend
Increasing share Decreasing share No change
Source: Euromonitor InternationalNote: C19 Pessimistic 1 represents a modelled
scenario with an estimated probability of 25-35% over a 1-year horizon, factoring in
macro drivers including GDP, stock prices, business and consumer confidence rates
alongside infection rates, supply chain and labour supply disruption rates

Chart 2 Beauty and Personal Care Impact of Soft Drivers on Value Sales: 2017-2025

Source: Euromonitor InternationalNote: The above chart shows the growth

decomposition split by macro drivers such as GDP per capita and population alongside
soft drivers listed as having a positive (+) or negative (-) impact on the total growth rate

GLOBAL MACROECONOMIC ENVIRONMENT

The COVID-19 pandemic has forced governments to quarantine entire countries,
disrupted global supply chains, slashed business and consumer confidence and
affected financial markets. The effects on the global economy are already being felt,
and will be substantial, but the exact magnitude will depend on the length of
COVID-19 restrictions.
COVID-19 will severely impact both the supply and demand sides of the economy. At
the same time, monetary policy tools are almost exhausted due to the slow recovery
from the Global Financial Crisis. Interest rates have not recovered, so central banks
have to resort to Quantitative Easing programmes (QEs), but QEs have limited effect
on labour markets, consumer spending and other aspects of the real economy.
Thus, countries have to turn to fiscal stimulus. However, the response to fiscal
stimulus will be limited too as long as people are quarantined in their homes. In the
meantime, governments are helping businesses and citizens by providing
emergency loans to cover expenses and lower the spillover effects through
economies, but uncertainty surrounding the pandemic limits economic activity.

GLOBAL INDUSTRY ENVIRONMENT

As the beauty and personal care industry gears up for a slow-paced global recovery
into 2021, the uncertainty around a number of probable pessimistic scenarios and
outcomes of the COVID-19 pandemic still looms large over the industry. While desire
for beauty has been relatively sustained, newly formed working and lifestyle habits
and subsequent cutbacks on product consumption, as well as dampened
discretionary spending as a result of the economic fallout, are likely to persist and
hinder a full industry rebound in the short to medium term.
The pandemic has had varied impact across different product segments, with more
premium-exposed categories such as fragrances and colour cosmetics taking the
most severe hit, while hygiene-related staples are showing greater resilience. Skin
care is set to be a major pandemic category winner, as self-care gets more
embedded into daily lives and associations with overall physical and emotional
wellness become more prominent.
Rapid consumer and company adoption of digital strategies is likely to have a long-

© Euromonitor Interna onal 2021 Page 3 of 5

 lasting effect on the beauty shopping experience, with priority on no-contact or
minimalised-contact fulfilment and e-commerce. Utilisation of AR/VR, livestreaming
and shoppable social media will help build up digital presence, while sampling
technologies will change how consumers experience the sensorial aspect of beauty.
While some positive signs of growth are starting to emerge across isolated
geographical and category pockets, the industry will need to brace itself for a
continued battle to capture and engage with a more channel and brand agnostic
consumer as a ‘new normal’ socioeconomic reality unfolds.

DISCLAIMER
Forecast and scenario closing date: 12 April 2021
Report closing date: 15 April 2021
Analysis and data in this report give full consideration to the impact of COVID-19 on
consumer behaviour and market performance in 2020 and beyond. However, the
situation continues to develop rapidly, and the influence and severity of the pandemic
are constantly evolving. For the very latest insight on COVID-19 and its impact on
industries and consumers, at both global and national level, readers can access strategic
analysis and updates on www.euromonitor.com and via the Passport system, where
new content is being added on a systematic basis.

SOURCES
Sources used during the research included the following:

Summary 1 Research Sources

Official Sources Aditya Limaye

Hygienic Res ea rch Ins titute Pvt Ltd
Na tiona l Council for Applied Economic Res ea rch
Na tiona l Informa tion Centre
Soa p &Toilertires MAnufa cturers As s ocia tion
Trade Associations All India Sma ll Sca le Cos metics Ma nufa cturers As s ocia tion
FICCI
Fra gra nces & Fla vours As s ocia tion of India
Hea lthka rt.com
India n Direct Selling As s ocia tion
India n Soa ps & Toiletries Ma kers As s ocia tion
India n Society of Cos metics & Chemis ts
Trade Press a gency reporter
Bea uty Bus ines s News
Bloomberg
Bra nd Equity
Broker Res ea rch
Bus ines s Sta nda rd
Bus ines s Toda y
Bus ines s Wire
Ca pita l Ma rket
Cos ma de.com
Cos metique News
Da ily News & Ana lys is
Economic Times , The
Equity Ma s ter
ET Intelligence Group
Europea n Cos metic Ma rkets
Femina Ma ga zine
fibre2fa s hion.com
Fina ncia l Expres s , The
Fina ncia l Times
Forbes
fra nchis e india
GCI Ma ga zine
Ha ppi Ma ga zine
Hindu Bus ines s Line, The
Hindus ta n Times
ICN India South As ia
Ima gine
India Infoline
India Toda y

© Euromonitor Interna onal 2021 Page 4 of 5

 Official Sources Aditya Limaye
India n Expres s
India n Mirror
india ncos meticchemis ts .org
Interna tiona l Cos metique News
Live Mint
Livemint
Ma g India
ma keupa ndbea uty.com
nfibea m.com
Outlook Ma ga zine
Pitch
Premium Bea uty News
Res pons ervice
s lides ha re.net
Soa p Perfumery & Cos metics
The As ia n Age
The Hindu
Times of India
wa tblog.com
yours tory

Source: Euromonitor Interna tiona l

© Euromonitor Interna onal 2021 Page 5 of 5