Unlocking The Secrets Of K-Beauty: India's Favourable Skincare Market

• Published date: 02 April 2024
• Subject Matter: Media, Telecoms, IT, Entertainment, Food, Drugs, Healthcare, Life Sciences, Advertising, Marketing & Branding, Social Media
• Law Firm: IndusLaw
• Author: Ms Rashi Saraf, Swathi Sreenath and Suyash Bajpai

INTRODUCTION

As the world embraces the secrets of wellness and care in recent years, India has emerged as a thriving market for cosmetics, particularly skincare and haircare products. South Korean beauty products (K-Beauty, as it is often called), either manufactured for Indian businesses and sold under Indian brands or retailed directly under Korean brands, have shown a sharp uptrend, aligning well with the consumer preferences.

This article delves into the Indian cosmetics market exploring key trends and the intersection of global influences, particularly from the booming K-Beauty industry. Additionally, it provides an overview of the regulatory framework governing cosmetics in India, emphasizing licensing, labelling standards, and ingredient regulations prescribed under Indian law. It provides a glimpse into investment conditions that investors in this space should take into account. The article aims to equip stakeholders with valuable insights into the Indian cosmetics market, facilitating informed decision-making in this dynamic and promising sector.

KEY TRENDS IN THE INDIAN COSMETICS MARKET

As health came into focus amid the pandemic, early 2020s saw three key trends in the Indian cosmetics industry: (i) the merging of beauty and healthcare; (ii) the move towards 'natural' and sustainable practices; and (iii) the shift towards online beauty shopping with the simultaneous rise of 'skinfluencers'.

The merging of beauty and healthcare

As expected, the onset of the pandemic led to a significant shift in global priorities. Health, which was always important, suddenly became the central focus for individuals, communities, and governments alike. From personal hygiene practices to healthcare infrastructure, every aspect was scrutinized and enhanced to combat the unprecedented crisis - fitness, nutrition, mindfulness, hygiene and sleep were a few areas which were emphasised upon. One key sector that witnessed this change was the cosmetics industry. There has been a noticeable shift from 'cosmetic' products, which primarily enhance the skin's appearance, to 'care' products that emphasize the wellness of the body beneath the skin and celebrate its natural characteristics. A recent study revealed that the spread of the pandemic positively influenced the skincare product market, while it had a negative impact on the sales of makeup products.¹ One reason for this could be that the pandemic induced lockdowns provided an opportunity for consumers to utilize more...