Production and Formulation of Cosmetics, Cleaners, Drugs, Soaps and Detergents. Personal Care, Household Cleaners and Pharmaceutical Manufacturing Industry.

Monday, January 22, 2018

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The Indian cosmetic industry has seen rapid strides over the past few years. With the development of cosmetic industry in the country, there has been influx of many international brands. The entry of more number of cosmetic brands in the Indian market has also been provoked by growing demand of branded products among people due to aggressive advertising strategies of players coupled with immense western influence. New product launches catering to consumers’ growing requirements are also fuelling growth in the industry, carving bright prospects for the industry in the future.

In that time the range of cosmetic and beauty products in India has widened tremendously. Beauty products manufacturers in India mostly cater to the great demand for cosmetics and toiletries that fall into the low or medium-price categories as the greatest demand in India has always been for these economically priced products.

However, in recent years in the cosmetics market India competitors have begun to manufacture products to cater to an International need. For instance, herbal cosmetics from India have a great demand in the overseas market and many cosmetic products that are manufactured in India today are supplied to international suppliers of branded cosmetics products. New facts that have been unveiled by a series of cosmetics business market analysis India reveal that many International companies are now outsourcing cosmetics to India and that the industry of cosmetic products India is growing at an average rate of almost twenty percent annually. This increase is attributed to two main factors. The first being the increase for the demand in Indian cost-effective products and the second being the increased purchasing power of the average Indian.

India Cosmetics market is projected to grow at a CAGR of over 6% during 2017-2022.  Increasing demand from youth population, increasing adoption of western culture & lifestyle and increasing number of beauty salons are aiding India cosmetics market. Moreover, increasing per capita expenditure personal appearance and growth in beauty and cosmetics market are some of the other factors expected to propel demand for cosmetic market over the next five years.

The market size of India's beauty cosmetics and grooming is expected to touch $35 billion by. The Indian cosmetics industry is majorly categorised into skin care, hair care, oral care, fragrances, and colour cosmetics segments.

The cosmetics and beauty market in India has observed continued and sustained growth over the years due to a beauty conscious female population and the emergence of the metro-sexual male. Several other factors such as surging disposable income, rising awareness levels towards maintaining prolonged beauty, evolving lifestyle, changes in the taste and preference, emergence of online shopping model, and development of the distribution channel have continued to further bolster the demand and supply of the products.

Growth in the market is anticipated on account of increasing per capita income, rising urban middle-class population and the growing desire among women to look alluring. Further, due to increasing distribution in small cities of the country, the market is registering high demand from tier II and tier III cities as well. Cosmetic products are no more restricted to being used on special occasions, and are gaining prominence as part of women’s daily regimen. For instance, an increasing number of women in the country are adopting anti-ageing creams as a daily skincare product.

India women’s cosmetic market is an emerging market with high growth potential. Continuous product improvements and introduction of new products, coupled with increasing awareness of cosmetic products among the female population, are expected to surge the demand for women’s cosmetics in the country over the forecast period. Rising western influence and promotional activities featuring female celebrities are other factors spurring growth in the market.

“Owing to the rising desire amongst Indian women to be financially independent, there has been more than 10% increase in the number of working women in India over the last four decades. High disposable income and changing lifestyle pattern among women is anticipated to intensify the opportunities for women’s cosmetic players operating in the country.

Global cosmetics market is expected to garner $429.8 billion by 2022, registering a CAGR of 4.3% during the forecast period 2016-2022. Cosmetics Market (makeup or beauty products) are mixture of chemical generally used to enhance the appearance or odor of the human body. Sun care, skin care, hair care, deodorants, makeup and color cosmetics, and fragrances are some of the cosmetics products that are predominantly available and used by individuals. Retail stores including supermarkets, exclusive brand outlets, and specialty stores amongst others are the major distribution channels, with online channels gaining popularity among consumers.

There is a considerable rise in disposable incomes over the past decade. The growth in global economies, changing lifestyles, rising demands of skin and sun care products due to varying climatic conditions encourages the growth of the market for cosmetics. A shift of preference towards natural and organic beauty products, particularly in U.S. and European countries, fosters the growth of the cosmetics market. Rising demand for natural, herbal and organic beauty products creates potential opportunities for manufacturers to innovate and develop new products in accordance to consumer preferences.

Changing Lifestyles

Improvement in the current lifestyles of the individuals is majorly affecting the cosmetics market. Consumers have now become more conscious regarding the usage of cosmetics in their daily life in an effort to step up their style quotient and overall personality. Cosmetics play an important role in enhancing one’s inherent beauty and physical features. Men are also increasingly using cosmetics in their daily routine including various types of fragrances and deodorants. This growing demand of cosmetic products has in turn led to the growth of cosmetics market across the world.


The Indian pharmaceuticals market is the third largest in terms of volume and thirteenth largest in terms of value, and it accounts for 20 per cent in the volume terms and 1.4 per cent in value terms of the Global Pharmaceutical Industry. India is the largest provider of generic drugs globally with the Indian generics accounting for 20 per cent of global exports in terms of volume. Of late, consolidation has become an important characteristic of the Indian pharmaceutical market as the industry is highly fragmented.

India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers who have the potential to steer the industry ahead to an even higher level. Presently over 80 per cent of the antiretroviral drugs used globally to combat AIDS (Acquired Immuno Deficiency Syndrome) are supplied by Indian pharmaceutical firms.

The Indian pharma industry, which is expected to grow over 15 per cent per annum between 2015 and 2020, will outperform the global pharma industry, which is set to grow at an annual rate of 5 per cent between the same periods. The market is expected to grow to US$ 55 billion by 2020, thereby emerging as the sixth largest pharmaceutical market globally by absolute size. Branded generics dominate the pharmaceuticals market, constituting nearly 80 per cent of the market share (in terms of revenues). The sector is expected to generate 58,000 additional job opportunities by the year 2025. *

India’s pharmaceutical exports stood at US$ 16.4 billion in 2016-17 and are expected to grow by 30 per cent over the next three years to reach US$ 20 billion by 2020.

Factors contributing to the growth of the Pharmaceutical Market:

India today has the distinction of producing high quality generic medicines that are sold around the world. Further, India is poised to be one of the fastest growing pharmaceutical markets in the world. The following factors have fuelled the growth for the drugs and pharmaceutical market:

·         The growing population of over a billion;

·         A huge patient base;

·         Increasing incomes;

·         Improving healthcare infrastructure;

·         An increase in lifestyle-related diseases such as diabetes, cardiovascular diseases, and central nervous system;

·         Penetration of health insurance;

·         Adoption of patented products;

·         Patent expiries and aging population in the US, Europe, and Japan.

India accounts for 20% of global exports in generics. In FY16, India exported pharmaceutical products worth $16.89 billion, with the number expected to reach $40 billion by 2020. Pharma exports in India grew at 9.44% in FY16 and are expected to register double digit growth in FY17.



India Household Cleaning Market Outlook, 2021, the overall market for household cleaning is anticipated to grow with a CAGR of 22.74% in the next five years.

In utensil cleaning category, dishwashing bars dominate market revenues, followed by liquid cleaners whereas dishwashing paste has negligible contribution. Consumers in urban areas are now upgrading to dishwashing liquids which are expected to register robust growth in the forecast period. Powder based utensil cleaners are now set to diminish from the market. The surface cleaning market is growing mainly because of rising awareness about brands due to heavy promotion by leading companies. Floor cleaners dominate category revenues, followed by specialized and multi-purpose cleaners. Surface cleaners are targeted mainly at urban households and thus are more popular in urban markets.

Growing awareness regarding home cleanliness and the need for disinfection is expected to fuel the demand for household cleaning products. Moreover, increase in disposable income coupled with rising focus on child health has positively affected the cleaning products demand in India. Moreover, household cleaning brands have concise advertising campaigns, which have helped them build a strong presence in urban Indian cities. As consumers seek to elevate their overall sense of well-being, the market is witnessing a growing prevalence for products with different fragrance. Adding to this, complex lifestyles have left consumers with little or no time to clean their homes, and this trend is anticipated to augment immense demand for convenient and more effective products. Improved living standards will further drive consumers to opt for premium priced and aesthetically appealing cleansers over the next five years.

The global market for household cleaners has witnessed growth at a steady pace in the past few years. The market has continued to gain significant profits across mature markets such as North America and Europe while also seeing encouraging growth across unconventional markets such as Asia Pacific and Latin America. Factors such as adoption of healthier lifestyles and the increasing concern for infectious diseases have been some of the key drivers of the market in the past years. There has been an increasing trend in the developed and the developing economies alike regarding the increasing use of homecare and hygiene products, which is expected to fuel the global demand for household cleaners. The increase in commercial use of household cleaners such as surface deodorizers and fabric refreshers has added to the demand for household cleaners.

The global household cleaners market was valued at US$ 27,468.6 mn in 2015, and is expected to reach US$ 39,400.9 mn by 2024, in terms of revenue. This will represent a CAGR of 4.1% from 2016 to 2024.


Soaps today are far too sophisticated and are available in a wide variety of forms for specific end uses. Soaps remove the dirt from the body and clothes. The soap that is used to wash the body is called toilet soap or bathing bar. The soap that is used for washing clothes is called either washing soap or laundry soap. The important classification of toilet soap are floating soaps, marbled soaps, medicated soaps and carbolic soaps.

India today is one of the largest producers of soaps in the world. The soap industry in India is at the high growth rate and many new entrants are planning to launch their product in this category. The overall soap industry is worth at 60000 crores. Soaps form the largest pie of the FMCG Market with bathing & toilet soaps accounting for around 30% of the soap market, by value. Currently, the soap industry is divided into three segments namely Premium, Popular and Economy/ Sub popular.

With increase in disposable incomes, growth in rural demand is expected to increase because consumers are moving up towards premium products. Toilet soaps contributing around 30% of the soap market. The FMCG industry can be divided into organized and unorganized sector. The size of the organized sector is about Rs.66 billion. The industry has been growing at a CAGR of 4% for the last three years.

The soap market in India is expected to see moderate growth over the span of the next few years. An increase in per capita income, increased awareness amongst the general public regarding the importance of proper hygiene, and greater investments by key players toward the research and development of newer and better products are all elements that will increase the size and boost the value of this industry.



The detergent market is one of the segments of the FMCG market in India that is in maturity stage and still has high growth potential. Although, the detergent consumption in India is less in comparison to the other Asian countries, it is growing vigorously. The per capita detergent consumption in India is around 2.7 kg per year. The detergent sector, with its increasing ability to influence

Due to the increase in population, higher urbanization, spread of education and rising levels of income and consumption, the overall growth of the detergent market has been in double digits from last several years. The detergent market is mainly concentrated in the urban areas but the level of penetration in the rural areas for the past few years has been astonishing.

The overall market for detergent is growing with a CAGR of more than 10% from the last five years. Detergents are available in three forms namely powder detergent, bar detergent and liquid detergent. Powder detergents are widely accepted by Indian consumers and dominate the industry. Even though detergent bars are still used in rural areas, they are fast disappearing from the market because of ineffectiveness.

The demand for detergents has been growing at an annual growth rate of 10 to 11 per cent during the past five years. Where an urban consumer prefers washing powder and detergents, a rural consumer is more inclined towards washing cakes and bars. But, over the last few years, we have seen that rural consumers are gradually shifting their preferences from detergent bar to detergent powders.

The contribution of rural markets in the FMCG sector is growing faster than urban markets. Powered with an incremental increase with better employment opportunities, rural consumers are upgrading their lifestyle with shifting preferences from non-branded and local product to the branded ones. At present, the size of the Indian FMCG market is estimated to be Rs 125,000 crore and is growing at the rate of 12 per cent yearly. The sector is expected to grow by up to 17 per cent annually to touch Rs 400,000 crore by 2020.

Liquid laundry detergent is manufactured using several raw materials such as water softeners, bleach and various enzymes among others. Liquid laundry detergent is primarily employed in cleaning laundry and has two major end user segments namely residential and commercial. The commercial applications include textile industry, hospitality industry, laundry services and others. Residential includes its use in household cleaning.

The global laundry detergent market size was valued at USD 133.3 billion in 2016. The rising penetration of washing machines in the developing economies is likely to be key driver for demand over the forecast period. Furthermore, technological advancements are also likely to fuel the growth.

The demand for the product in the U.S. is dominated by growing popularity of liquid products. The U.S. has witnessed tremendous growth in the use of liquid commodity over powder merchandise.


Selected Formulary Book on Cosmetics, Drugs, Cleaners, Soaps and Detergents


About the Book

Author:                NPCS Board of Consultants & Engineers

ISBN:                   9789381039731

Book Code:          ENI315

Indian Price:        1475/-       

US$:                     150-

Pages:                   416

Publisher:            Niir Project Consultancy Services


Cosmetics are linked to the aesthetics of beauty and have been used for centuries to improve the appearance and enhance attractiveness. Besides helping us with our personal hygiene, cosmetics have become vital to our self-esteem and largely determine how other people treat us and our ability to influence them. Cosmetic products are segmented into skin care products, hair care products, color cosmetics, fragrances, etc. A soap or a detergent is a material which, when dissolved in water, aids the removal of dirt from a surface. The soap, detergent product industry is vivacious, varied, creative and tricky and has the prospective to provide a gratifying career.

The increasing demand for advanced and sophisticated cosmetics, soaps and detergent is an important driving factor in the market. The market for soaps & detergents in Asia Pacific is likely to expand significantly due to the changing lifestyle of people and growing modernization. Presently, the retail sale segment generates a larger share of the overall global market revenue. The distribution channels such as supermarkets, department stores, pharmacy & drug stores, specialty stores, beauty salons, Internet retailing, and shopping complexes play an essential role in meeting the demand for these products.

The book contains processes formulae, plant & machinery suppliers with their photographs and providing information regarding manufacturing method of various products. Some of the fundamentals of the book are cosmetics and drugs, ocean bathing salt, oxygen bathing salt, medical bathing salts, carlsbad well, hallein well, sodium thiosulphate plus acid, bath water, alcoholic sulphur hair lotion, scalp stimulant, hair wave concentrate, hair setting concentrate, hair fixative cream, hair fixative perfumes, hair oil, shampoo Powder, cleansers, soaps and detergents, cleaning skins and leather, glass cleaning, dish washing powder, stain removers, bleaching agent, soft soap, laundry soap etc.

This book will be a mile stone for its readers who are new to this sector, will also find useful for professionals, entrepreneurs, those studying and researching in this important area.


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