The Official Omega 5 Oil Site: India turns to green skin care -- Is it time for POMEGA, the pioneering Omega 5 oil company, to stake its claim in this market?

Coverning the marketplace in India in the December 2007 issue of GCI magazine Priyanka Bhattacharya writes about the greening of the market

and market opportunities

Green has always been “in” in India. Because of the country’s Ayurvedic heritage, there has always been an emphasis on using natural products and herbs for beauty care.

Traditional home beauty recipes have been passed down through generations, defining key beauty regimens for most men and women in India, but the market opened up in the mid-1990s when consumers’ buying capacity increased, welcoming packaged beauty products that were not necessarily nature-based. At the time, consumers were hardly discerning, and using at-home beauty recipes was considered down-market. While this new buying pattern trickled down to smaller cities across the country, consumers in the more rural areas continued to supplement their packaged creams and lotions with at-home recipes. Culturally, they never completely trusted imported brands or products with synthetic ingredients. The scene is changing again. Over the last two to three years, there has been a movement among elite and mid-range buyers to seek out beauty care products that are made from natural ingredients and fewer preservatives, in part, due to consumers becoming more informed and questioning the manufacturing process behind every brand. There is also a growing concern about the chemicals that are put into beauty care, cosmetics and toiletries.

Back to Nature

According to a report by Euromonitor International, since 2006, products based on natural ingredients have become part of mainstream offerings. This is a global phenomenon that is being driven by increased focus on health and well-being, and a rising awareness regarding allergies and the perception of health risks from chemical exposure (Euromonitor pegs the number of chemicals the average consumer is exposed to in the course of daily grooming at 170). While natural beauty products never really went out in the Indian market, there is a new glamour in using nature-based or organic beauty products. Consumers who purchase natural or organic beauty products in India seem to do so in order to make a statement about their lifestyle.

Indian consumers also perceive natural-based products as having long-term beneficial impact on skin and hair.

Commercial Opportunity

The growing awareness among young Indians about health, wellness and beauty as important aspects of life translates to growth opportunities for natural beauty product manufacturers and marketers. According to a report in The Times of India, a leading Indian daily, young Indian consumers are willing to spend more on eco-friendly products and natural beauty products because they feel they are doing something beneficial for themselves.

With the increasing global awareness of organic beauty, both business and tourist travellers like to pick up beauty products with natural ingredients from Indian spas and stores. In fact, Indian brands such as Forest Essentials and Khadi (an Indian government initiative to promote cottage industry that has upgraded its beauty product offerings) cater to this segment.

Sellers Market

For Indian consumers, there have always been indigenous brands built on natural-based beauty care. Multinationals’ embrace of the trend is a sign that natural and organic ingredients-based beauty products are here to stay. Over the last year, indigenous Indian natural beauty brands have also started to build brand awareness through new campaigns, redesigned product packaging and updated formulas. They all claim to offer safe, efficacious and natural solutions by synthesizing traditional Ayurvedic recipes and herbs with modern science.

Besides national brands, each regional market has its own natural beauty brands, often marketed by beauty therapists and salons, and high-end brands and retailers such as The Body Shop, Clarins, Pomega5, Tzerah, Lush and L’Occitane have made their presence felt in the market.

Market Opportunity

With the increasing demand for natural-based products, there’s a two-way business opportunity for both Indian and international manufacturers. India is known as a popular source for raw ingredients due to its rich mountain flora. Along with sourcing natural ingredients, Indian contract manufacturers are adept at developing specific natural beauty products—and this is a trend gaining momentum. Local brands such as Lotus Herbals and JR Herbals also contract manufacture natural beauty products for clients in the international market—including the U.S., Europe and the Middle East. And the opportunity to market naturals in India is not waning. The strong brand awareness among consumers ensures market potential for organic and natural beauty brands ready to invest in the Indian market.