Increasing personal care products demand

driving Indian surfactants market: Frost &

Sullivan
Use of multifunctional surfactants expected to gain momentum in the country, says the new stud
Growing consumerism is spurring demand for personal careproducts, which in turn is driving
related surfactants market in India, according to Frost & Sullivans new report, Trends and
opportunities in surfactants for personal care. The Indian surfactants market for personal care
hinges largely on the expanding middle-class consumer population in the country. Specialty
surfactants used in the personal, home care and industrial segments has made a foray into the
Indian market and will continue to drive sales in these segments, where product innovation is the
cornerstone of growth.
Frost & Sullivans new study finds that the Indian surfactants market earned revenues of $ 2,278
million in 2013 and estimates this to grow at 13% annually to reach $3,748 million in 2017,
approximately. Meanwhile, the personal care surfactants market is estimated to grow at 23%
from 2013 till 2017 and attain $547 million in revenue. This study covers the Indian surfactants
market in general and the personal care surfactants segment in particular.
India has a large market for niche beauty products, with cosmetics companies exclusively
marketing oil-free fairness face washes and creams. Surfactant-based face washes, hair creams
and gels are increasingly replacing traditional products because of ease in using the product, its
cleansing ability, and ease in customising the product. For example, shampoos and conditioners
are now customised for various hair types. With fast moving consumer goods (FMCG)
companies riding on these innovations to penetrate the potentially enormous personal care
market in India with approximately 750 million and growing users, new avenues for the use of
surfactants are expected to open up. The average Indian consumer has a wider product and price
bracket to choose from, which augurs well for the surfactants market for personal care.
Multifunctional surfactants are likely to gain widespread acceptance in the Indian consumer
segment, especially in the home care segment. Non-ionic surfactants with their inherent biofriendly properties and degradability are also expected to make headway in the Indian market
over the next four years, said Frost & Sullivan in a press release.
However, being a price-sensitive market, escalating raw material costs and the subsequent
increase in product prices may dampen consumer interest in expensive product innovations, and
may impede new product development in this sector. Manufacturers must deliver the best quality
at the lowest price to establish a foothold in this domain. Product innovation that focuses on
niche uses and convenience (like the use of multifunctional surfactants - a single surfactant to
cater to multiple domestic applications) is vital for the growth of this industry. Consumers are
becoming more perceptive towards value addition, hence anticipating consumer needs and
broadening the application base of surfactants can expand the bandwidth for growth in the Indian
market.

Business standard

Personal Care Market in India 2012

Indian FMCG industry constitutes the largest segment in India with considerable contribution to
the GDP. It can be categorized into primarily personal care, health care, home care and food and
beverage. In India, personal care products traditionally only comprised of toothpaste, soaps and
shampoos. However, cosmetics such as beauty creams and lotions or even oral care products
such as mouthwash are fast gaining popularity in the personal care market. Expenditure on these
emerging products has shown exponential growth. Media penetration and rising consciousness to
global fashion and trends have sculpted the course of consumer spending. Acted upon by the
availability of international products and aided with rising disposable income, the sector is
poised for further growth.
The report begins with an overview of the FMCG industry in India providing the market size and
growth as well as information regarding its contribution to GDP in India. This is followed by a
primary segmentation of the industry. An overview of the personal care market provides an
introduction to the sector and covers the market size and growth in India. An analysis of the
value chain has been included which is followed by a snapshot of the various distribution
channels players opt for in the personal care market. An EXIM trend over a period of five years
is included which precedes a Porters Five Forces analysis that concludes the section.
The next section deals with the segmentation of the personal care market. Each of the six subsegments that the sector comprises of is discussed and includes skin care, hair care, oral care,
color cosmetics, bath and shower as well as fragrances.
An analysis of the drivers explains the factors for growth of the market and includes increase in
disposable income, growth in mens grooming segment, increase in awareness, growth in rural
segment and rise in organized retail. Personal care products do not really fall within the purview
of necessities barring a few. Due to international products making a beeline in the Indian market,
some are more often being termed as luxury products. Intensive research and development has
allowed players to improvise on existing products towards catering to customized needs of
consumers. An increase in disposable income at the hands of people acts as the primary driving
force in this sector as people have the capacity to spend on such products. Another reason for
growth is the emergence of the male grooming sector. Women category has always been a
driving force, but the added percentage in terms of male segment has only furthered growth in
this sector. As men pay more attention to their appearance and image, this category has attracted
a host of products delineated strictly for their needs. Media penetration acts a chief stimulant in
this aspect as it results in heightened awareness among the masses. Players continue to advertise
and look to provide promotional offers in order to create visibility and awareness regarding
products to further off-takes. The rural segment has also played an imperative role in the markets
growth story. Majority of Indias population resides in rural areas and the means to tap this
segment spells higher margins. Indian Government has enforced certain regulations that
contribute to growth in rural income. Growth in rural income, affecting this market, has been
noticed in the usage of toothpaste from that of toothpowders. Rise in agricultural outputs aided
with non-agricultural income is only to sculpt success for personal care sector. Further, organized
retail poses as a chief driver especially in the urban segment. An organized retail presents with it
an opportunity to showcase products, both domestic and international, on a larger platform.
Availability and penetration of products determine a brands success which is aptly sourced

through retail outlets. However, the sector is also facing certain challenges. Factors such as
harmful effects of chemicals, depreciation of rupee and rise in packaging cost pose as
impediments for this sector.
Government participation in this sector covers Drugs and Cosmetics Act 1940, Bureau of Indian
Standards and Drugs and Cosmetics Rules 2010. The major trends identified include innovation,
personal care appliance, improved marketing strategies, products with dual benefits, rise in
organic products and teens market.
The competition section offers a competitive landscape of the players by providing their
financials and key financial ratios. It also provides basic information regarding the organizations.
Key financial parameters constitute the financial performances of the players which are followed
by business highlights. Strategic recommendations followed by appendix on key ratios comprise
the concluding section of the report.
Additional Information
Press Releses
Product differentiation to boost the Personal Care Market in India, finds Netscribes Netscribes
(India) Pvt. Ltd. launches a report on the Personal Care Market in India 2012 as part of
Netscribes Consumer Goods Industry Report Series.
Mumbai, India February 23, 2012 Netscribes (India) Pvt. Ltd., a knowledge consulting
solutions company, announces the launch of its report Personal Care Market in India 2012.
Personal Care market forms a part of the parent fast moving consumer goods (FMCG) industry
in India. Expenditure on personal care products has increased over the years with gradual
emphasis on look good and feel good factor taking precedence. Spurt of media penetration and
rising consciousness to global fashion and trends have sculpted the course of consumer spending.
The availability of international products and aided with rising disposable income, the sector is
poised for further growth.
The report begins with an overview of the FMCG industry in India providing the market size and
growth as well as information regarding its contribution to GDP in India. This is followed by a
primary segmentation of the industry. An overview of the personal care market provides an
introduction to the sector and covers the market size and growth in India. An analysis of the
value chain has been included which is followed by a snapshot of the various distribution
channels players opt for in the personal care market. An EXIM trend over a period of five years
is included which precedes a Porters Five Forces analysis that concludes the section.
The next section deals with the segmentation of the personal care market. Each of the six subsegments that the sector comprises of is discussed and includes skin care, hair care, oral care,
color cosmetics, bath and shower as well as fragrances.
An analysis of the drivers explains the factors for growth of the market and includes increase in
disposable income, growth in mens grooming segment, increase in awareness, growth in rural
segment and rise in organized retail. Personal care products do not really fall within the purview
of necessities barring a few.
Due to international products making a beeline in the Indian market, some are more often being
termed as luxury products. Intensive research and development has allowed players to improvise
on existing products towards catering to customized needs of consumers. An increase in
disposable income at the hands of people acts as the primary driving force in this sector as
people have the capacity to spend on such products. Another reason for growth is the emergence
of the male grooming sector. Women category has always been a driving force, but the added
percentage in terms of male segment has only furthered growth in this sector. As men pay more

attention to their appearance and image, this category has attracted a host of products delineated
strictly for their needs. Media penetration acts a chief stimulant in this aspect as it results in
heightened awareness among the masses. Players continue to advertise and look to provide
promotional offers in order to create visibility and awareness regarding products to further offtakes. The rural segment has also played an imperative role in the markets growth story. Majority
of Indias population resides in rural areas and the means to tap this segment spells higher
margins. Indian Government has enforced certain regulations that contribute to growth in rural
income. Growth in rural income, affecting this market, has been noticed in the usage of
toothpaste from that of toothpowders. Rise in agricultural outputs aided with non-agricultural
income is only to sculpt success for personal care sector.
Further, organized retail poses as a chief driver especially in the urban segment. An organized
retail presents with it an opportunity to showcase products, both domestic and international, on a
larger platform. Availability and penetration of products determine a brands success which is
aptly sourced through retail outlets. However, the sector is also facing certain challenges. Factors
such as harmful effects of chemicals, depreciation of rupee and rise in packaging cost pose as
impediments for this sector.
Government participation in this sector covers Drugs and Cosmetics Act 1940, Bureau of Indian
Standards and Drugs and Cosmetics Rules 2010. The major trends identified include innovation,
personal care appliance, improved marketing strategies, products with dual benefits, rise in
organic products and teens market.
The competition section offers a competitive landscape of the players by providing their
financials and key financial ratios. It also provides basic information regarding the organizations.
Key financial parameters constitute the financial performances of the players which are followed
by business highlights. Strategic recommendations followed by appendix on key ratios comprise
the concluding section of the report.

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Personal care drives FMCG business on rural push

John Sarkar & Shubham Mukherjee, TNN | Dec 27, 2014, 03.49AM IST

For decades, food items have been the most widely distributed FMCG products in the country.

DELHI/MUMBAI: If you are stuck in a remote village in India, dusty and hungry, chances
are you will find more options to wash your hair than fill your stomach.
For decades, food items have been the most widely distributed FMCG products in the
country. But that rule of thumb is changing. Indians are more likely to find more personal
care products than food in a shop these daysa result of consumer goods players pushing
the distribution of an entire range of their products in the face of wary consumer spending.
Latest data from market research firm Nielsen reveals that on the list of the top five FMCG
product categories, only one food productbiscuits finds place. The category with the
maximum reach, or penetration as it's called in market parlance, is shampoos at 79%,

followed closely by biscuits at 78%.

Distribution of categories has undergone a dramatic transformation in the last 15 years.

FMCG is available in 8.8 million outlets and shampoo is available in 80% of those outlets,
says D Shivakumar, chairman and CEO, PepsiCo India.
"Skin creams have got into the top 10 distributed list and packaged tea, which was the most
distributed category a few decades ago, is now out of the top 10. Daily-use, low-unit price,
easy-to-sell via wholesale are the key lessons for categories in the last 10 years." Data
suggests that most of this evolution is due to a lot of un-branded consumption shifting to
branded consumption. For instance, in utensil cleaners and edible oils penetration has
increased to 36% from 33% and 21% to 17% from 2012 to 2014, respectively. "Earlier, people
would turn up at shops with bottles to buy loose mustard oil. That's changing with rising
affluence levels and lower packaging costs. In future, we will see more un-branded-tobranded consumption in non-mature categories such as, hair oils and hair conditioners,"

says Vijay Udasi, executive director, Nielsen India.

The findings also reveal a drop in penetration levels of detergents cakes and bars from 60%
in 2012 to 59% in 2014 as more consumers shift to washing machines to do their laundry.
Similarly, skin creams have also seen a drop of 2% due to changes in consumer behaviour.
"The segments within the skin creams category have also changed. More people are buying
emerging products like face washes, anti-ageing and under-eye creams," says Udasi.
For HUL, next step now is to make its brands accessible using pack sizes and price points
tailored to win across the country. "We have been able to maintain our leadership position
in a growing market by following a market development approach. One of the most
successful attempts on this front has been the Dove 'twin sachet', which offers a shampoo
and conditioner together at a Rs 5 price point to induce trials," says Srirup Mitra, category
head - Hair Care, HUL.
But the dominance of non-food categories on the top could change. There are ominous
signs. Take the salty snacks category for instance. Penetration has risen from 58% to 64%.
Even a category like noodles, which has still not broken into the top-ten list, has seen an
increase in penetration from 38% to 42%. "The next level of growth lies within branded
foods," says Udasi. "There is an emergence of new food categories in bread spreads,
including peanut butter and branded spices. As affluence levels rise, rural consumers will
spend more on grocery items and food."
Although FMCG growth has been slowing for some time now, sliding by 8.1% from 2010 to
2013, Nielsen predicts that India's FMCG industry will grow from $37 billion in 2013 to $49
billion in 2016. Distribution growth and innovations around sachet offerings will play major
roles in fuelling growth, which had slowed down in the last few years. While the rise of ecommerce is being keenly watched, several new models may evolve over the next few years.

India BPC Market

Future Impact Driver Issues
Value Consumers want more masstige products (luxury without a luxury price
tag), while all-in-one products providing value for money are also popular.
Luxury Consumers are still keen on luxury beauty care products.
Science One area in which consumers are generally prepared to spend more is in
the high-tech, scientificallyproven beauty care market, particularly anti-ageing and
condition-specific products. Continued scientific advances will enhance this trend.
Nature Although still something of a niche, all things natural will continue to grow
in popularity and will almost certainly have a bigger impact on personal care
markets in the future. The great