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Aditi Vyas

Aditi Vyas, Founder, Azafran Innovacion Ltd.

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What to Expect in 2018 in Beauty and Wellness Industry?

The organic personal care market is a place where science meets nature. A trend which originally started in the western markets is now picking up momentum in the Indian market as well.

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In India, we’ve always had a culture of using home remedies to one’s vanity advantage for decades. It is evident that natural beauty products are getting more and more popular in recent times. The trend has gained momentum in the last few years as the awareness on potential harm by using chemical based beauty products is increasing. People are also becoming environmentally conscious and prefer products with a greener footprint. A major study in the segment indicates that natural beauty products will see a considerable rise in demand and become a significant trend in 2018. Leading brands are already up and running, getting the most out of the trend forecast by encompassing local approaches and developments in biotechnology with a more organic approach towards ingredients.

Going the organic route is sometimes challenging for the companies, as they almost always rely on outsourced manufacturing for most of their products. Furthermore, sourcing certified organic ingredients is always expensive and can cause ripples in the strategic pricing of the products. Very few companies offer organic products with complete control over the entire manufacturing process from farm to home. As such, going organic is great because you don't have to worry about any synthetic ingredients in the products. Unlike conventional farming which uses tons of artificial fertilizers and pesticides, organic production does not use synthetic chemicals and hence does not pose any risk of soil and underground water contamination.

Organic beauty or skin care products are formulated with active natural, botanical extracts which are also extremely effective in their own ways.  They can make the skin soft, smooth and younger looking while removing harmful toxins and free radicals from deep layers of the skin. Today, we’re living in the information age, and information like this is readily available to the consumers. As a result, they are beginning to choose organic products over those that are synthetically produced. The preference for organic skin care products specially formulated for targeted solutions like anti-acne, anti-ageing, anti-blemishes, anti-pollution, etc., is steadily increasing among the Indian consumers.

India's natural and organic personal beauty care products market is expected to grow at a CAGR of 17.27% during 2017–2022. Along with rapid urbanization, growth for organic personal care market is driven by people’s growing awareness about natural and organic products and their preference towards adopting a greener lifestyle. Their inclination towards a healthier, and wellness-oriented lifestyle is growing parallel to their awareness of sustainability, naturality and ethical practices, and this is beginning to impact everyday spending habits. This is certainly true among the millennials (the under 35s), who are now the ‘most engaged and active’ organic consumer demographic. They are willing to spend more for sustainable, and better quality organic products as compared to their predecessors, the baby boomers.

This overall trend is also supported by the country's high per capita income and a visible increase in the average disposable income. As long as consumers are concerned with the impact of pollution and a more stressful lifestyle, they will look for innovative organic skincare solutions with a link to natural formulations. Over half (57%) of the 30,000 global consumers taking part in Nielsen’s Global Corporate Sustainability Report in 2015, rated a product’s natural and/or organic ingredients as a key influence on their purchasing decisions. The figure rose to 69% among those willing to pay more for sustainable products.

The organic personal care market is a place where science meets nature. A trend which originally started in the western markets is now picking up momentum in the Indian market as well.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house

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Beauty and Wellness Industry

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