Personal Care Industry Report - Saksham
Personal Care Industry Report - Saksham
Personal Care Industry Report - Saksham
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TABLE OF CONTENTS
SL. NO.
CONTENT
PAGE No.
1.
INTRODUCTION
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11
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14
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REFERENCES
17
1) INTRODUCTION
Personal care products are one of the key constituents of the Fast Moving Consumer Goods
(FMCG) sector. Personal care is the industry which manufactures consumer products used
for beautification and in personal hygiene. Personal care includes products as diverse
as chapstick, cleansing pads and wipes, colognes, cotton swabs, deodorant, eye liner, facial
tissue, hair clippers, lip gloss, lipstick, lotion, makeup, mouthwash, nail
files, pomade, perfumes, personal lubricant, razors, shampoo, talcum powder, shaving
cream, skin cream, toilet paper, toothbrushes, and toothpaste, to give a few examples.
The major demand is for the products that are of basic need for the consumers like soap,
shampoo, hair oil etc. The personal care products industry consists of four major sub-sectors
manufacturing a range of products. These sub-sectors and their products are highlighted below:
Hand and Foot Care Products- As the name suggest these products are used to enhance
the beauty of hands and feet. These include herbal and organic products, as well as
products for youthful skin. Men have also started to take better care of themselves,
resulting in growth in the mens foot care products market segment. Hand and foot care
products can be broadly categorized into cuticle care products, foot scrub, hand and foot
cream, nail care products etc.
Hair Care Products- Hair care was the largest market segment, both in 2004 and in 2005
with sales reaching 350 million dollars globally. The price war has had its impact on the
shampoo and styling categories. Sales in hair coloring products have stabilized while hair
conditioners and hair repair products, showed significant growth. Consumers are willing
to buy special, more costly, products because these products are used for many purposes
like hair cleansing, hair conditioning and hair coloring. Some important hair care
products are mentioned below:
o
Hair Shampoo
Hair Conditioner
Hair Oil
Hair Glaze
Hair Spray
Hair Colors
The above mentioned are the various product lines that the personal care category includes.
like consumers demanding better performance from products, whereby a minimum addition of
the active ingredient to justify marketing claims is no longer sufficient, are relatively new.
Indian personal care industry typically uses specialty chemicals such as surfactants, fragrance
compounds, polymer compounds and UV filters as active ingredients. Growing demand is
leading to development of high end specialty active ingredients with a stronger emphasis on
organic (natural) ingredients. Driven by increasing consumer preference for products with better
functional benefits, the personal care ingredients market is expected to surpass the growth of the
personal care products market.
1) HLL: Hindustan Lever Limited (HLL) is India's leading consumer goods supplier, with a
focus on the Fast-Moving Consumer Goods (FMCG) category that includes detergents,
soap, shampoo, deodorant, toothpaste, and other personal care items, and cosmetics.
HLL's personal care brands include soap brands such as Lux, Lifebuoy, Liril, Breeze,
Dove, Pear's, and Rexona; shampoos and hair coloring brands including Sunsilk Naturals
and Clinic; skin care brands Fair & Lovely and Pond's; and oral care brands Pepsodent
and Close-Up. The company's cosmetic line is led by the Lakme brand; HLL also
produces a line of Ayurvedic personal and healthcare items under the Ayush brand.
HLL maintains a strong manufacturing presence in India, with some 80 factories located
throughout the country; the company also subcontracts to more than 150 third-party
producers. HLL is itself a subsidiary of Unilever, which controls 51.55 percent of the
group. With its strong presence and Brand Image in Indian market, it gives a huge
competition to the other players.
2) Procter and Gamble: P&G Home Products Limited is one of India's fastest growing
Fast Moving Consumer Goods Companies. P&G Home Products Limited is a 100%
subsidiary of The Procter & Gamble Company, USA that in India, has carved a reputation
for delivering superior quality, value-added products to meet the needs of consumers.
P&Gs products include Head & Shoulders, Pantene, and Rejoice in the Hair Care
segment; skin care brand Olay; and Oral care brand Oral-B. It manufactures a wide range
of consumer goods.
3) Marico Industries: Marico is a leading Indian group operating in Consumer Products
and Aesthetic Services. Over the past 17 years, Marico has been continually improvising
and building new brands. Marico's Personal Care Products Business houses well-known
brands such as Parachute, Hair & Care, Nihar, Shanti, Mediker, among others, which
occupy leadership positions with significant market shares in most categories- Coconut
Oil, Hair Oils, Post wash hair care, Anti-lice Treatment, niche Fabric Care etc.
Parachute is the premium edible grade coconut oil, a market leader in its category. It is
the most known product of this company and is synonymous with pure coconut oil in the
market; Parachute is positioned on the platform of purity. The brand has a huge loyalty,
not only in the urban sections of India but also in the rural sector. The quality of the
product has contributed to its lasting success. The consistency, with which Parachute has
delivered, ensures consumer loyalty and trust in the brand.
4) Dabur: Dabur also is one of the main players in the Personal Care Industries. Dabur
India Limited has marked its presence with significant achievements and today
commands a market leadership status. Consumer Care Division (CCD) of Dabur
addresses consumer needs across the entire FMCG spectrum through four distinct
business portfolios of Personal Care, Health Care, and Home Care & Foods. The Master
Brands for personal care division are:
5) Emami: A dream of reaching out to the Indian middle class; a target audience whom they
thought will have increasing potential for consumption, the company started
manufacturing its products. Emami Talcum, Emami Vanishing Cream and Emami Cold
Cream were great favorite brands with the quality conscious consumers in the midseventies. The company soon became adept in selling beautiful dreams to Indian women
interested in finding their own identity.
Emami Limited is one of the major health and personal care FMCG companies in India
with its brand presence globally. The famous and well known personal care brands under
Emami are Baby Massage oil, Boroplus Prickly Heat Powder, Fair and Handsome,
Hairlife, Malai Kesar Cold Cream, Navratna Cool Talc, Navratna Oil, etc.
This companys main achievement and popularity happened because it was able to
understand the domestic market well, catered the rural mass, and focused on Ayurvedic
products.
6) Colgate-Palmolive: This Company is most famous for its range of dental care products.
Its product ranges in the oral care category are Colgate toothpaste, toothbrushes, tooth
powder, mouthwash, etc. In other personal care products the brands are Palmolive
Naturals Moisturizing Body Wash, Palmolive Aroma Shower Gel, Palmolive Thermal
Spa, Palmolive Liquid hand wash, Palmolive Shaving Cream, Halo Shampoo, etc.
This company is also a main player in the personal care industry with huge varieties of
products and its strong presence in the country.
The above mentioned are the main players in this industry.
The consumer goods sector in the urban areas is becoming quite saturated (though it will
continue to dominate in the next 8 10 years) while the penetration in the rural areas are
only about 1%.
The rural areas have and will continue to make up more than 50% (153 million) of Indias
total households and accounting for more than its current 66% contribution to total
consumption.
Rural India has a large consuming class with 41 per cent of India's middle-class and 58
per cent of the total disposable income.
Currently, nearly 34% of the off take of consumer goods companies come from rural
areas.
Companies like HUL, ITC and Colgate have already established good distribution networks in
these regions. Other companies would start catering to these regions in near future.
Between 2005 and 2010, this sector in the rural and semi-urban areas has experienced
around 50% growth, at a CAGR of 10% and increased its market size.
Some of the growth statistics for France, Germany, Italy, Spain, United Kingdom, United States,
Russia and Brazil for the year 2007 is presented below.
France
The personal care product market in France is becoming more diversified and fragmented. In the
year 2006 the personal care industry in France grew at the rate of 2.7%, earning revenue of USD
1,151.34 million according to the Federation des Industries de la Perfumeries. The largest share
among all the personal care products was of body moisturizers, with sales of USD 361 m, which
was 2.4% more than the previous year.
Germany
The German personal care market has shown a rising trend in the year 2006 with a total sale of
USD 983 m as reported in IRI Germany at the rate of 3.7%. In Germany the most popular
personal care products are Gels, Lotions, moisturizers and creams.
Italy
According to the ECM calculations by Unipro, the Italian market figures for total sales of
personal care products were USD 1,186.15 m in 2006, which was above 6.3% than the previous
year.
Spain
Due to increasing awareness about personal care and beauty, a large number of Spanish people
are demanding good quality personal care products, which has led to a growth in the
development of this industry in Spain. Body lotion and body oil accounted for the largest share
among other body care products.
United Kingdom
According to a study by TNS World panel, the personal care industry in UK had the total sales of
$312.77m in 2006, which was 9% higher than the previous year.
United States of America
Anti-aging creams and lotions have a huge demand in USA, and these products are pushing the
rate of growth of this industry in this country. In USA, the personal care products market is
almost USD$40 billion and according to estimates it will grow at the rate of 3.4% annually.
Russia
The Russian personal care market continues to grow and in several aspects, according to some
marketing specialists, doesnt conform to the European models.
Brazil
The personal care industry in Brazil is the sixth largest in the world, and had the sales of
US$9.19bn in 2006, which is up 13.6% from $8.09bn in 2005.
Counterfeit products, which illegally mimic the labels of the established brands. These products
narrow the scope of FMCG products in rural and semi-urban market.
Opportunities:
Untapped rural market
Rising income levels, i.e. increase in purchasing power of consumers
Large domestic market- a population of over one billion.
Export potential
High consumer goods spending
Threats:
Removal of import restrictions resulting in replacing of domestic brands
Slowdown in rural demand
Tax and regulatory structure
Sadak Yojna and Swarnjayanti Gram Swarozgar Yojana with a total allocation of Rs
53,500 crore in 2009-10 and the growing minimum support price for crops at 10% to
15% year-on-year between 2005 and 2008 have fueled the rural consumption story.
The FMCG market in India grew by 14%, with rural growth punching at 18%, much
higher than 12% in cities. Accordingly, the rural contribution to FMCG sales remains
much higher in states that have a significant rural population. Contribution of rural India
to total FMCG sales amounted to 62% in Bihar, 55% in Kerala, 51% in Assam, 50% in
Chhattisgarh, and 49% in Uttaranchal. Within this segment, personal care products grew
faster in rural areas than the urban areas during January-May 2010.
10)
The outlook of more stringent regulation governing usage of active ingredients in personal care
products implies the need to strengthen testing capabilities to ensure adequate product safety.
Also the industry needs to self regulate to ensure performance claims made in product
advertisements are commensurate with benefits delivered to consumers.
The surging demand for green products calls for better product and application R&D capabilities
to use natural ingredients more effectively. Multinational players with international brands have a
strong presence in the Indian formulation segment. Local brands too are gaining a foothold in the
market by innovatively developing value offerings to meet the unique needs of the Indian
consumer.
Going ahead, it will be important to develop R&D capabilities to further customize products for
Indian consumers, create greater awareness among the burgeoning middle class and ensure
effective distribution reach to service them. The companies that are able to develop a judicious
mix of the above will be the eventual winners. The time is ripe to review ones strategy and come
up with innovative approaches to help realize the full potential of the Indian personal care sector,
where the ingredients market is likely to double in the next four years.
REFERENCES
http://www.tsmg.com/download/article/Personal_Care_Chemicals.pdf
http://www.fashionproducts.com/personal-care-overview.html
http://www.naukrihub.com/india/fmcg/overview/personal-care/
http://www.dabur.com/About%20Dabur-Dabur%20At-a-Glance
http://www.frost.com/prod/servlet/market-insight-top.pag?docid=10732107
http://www.researchandmarkets.com/reportinfo.asp?
cat_id=37&report_id=54547&p=1
http://www.wikipedia.org/