Recently, Sanjiv Mehta, CEO of Unilever India, said that its Indian subsidiary now accounts for about 10.7% of Unilever Group sales, and India will surpass the United States as Unilever's largest market in terms of sales. India is already Unilever's largest market by sales volume.
According to estimates from Statista before COVID-19 epidemic, the Indian beauty market is expected to exceed $230 billion by 2023, with a compound annual growth rate of 8.1%, almost twice as fast as the US.
Personal care accounts for the largest proportion, 46% of total sales with $84.5 billion, and is expected to grow at a CAGR of 8.3% by 2023. Skincare, with sales of $55.9 billion, is expected to grow at a CAGR of 7.9%, while cosmetics, with sales of $43 billion, is expected to grow at a CAGR of 7.7%.
According to a report by Kordsa Consulting, growth drivers for the Indian beauty market include favorable demographics and increasing disposable income, salaried female workforce, internet penetration, increasing male beauty, untapped rural market, growing detailed market for bridal beauty, and the rise of beauty care.
Among the many factors, the large population base and the growth in disposable income best reflect the market potential. According to a report released by Deloitte and the Indian Retailers Association in 2018, India has the largest youth population in the world, with nearly 600 million people under the age of 25, while India's GDP per capita stepped across the $14,000 threshold in 2018. As per capita income increases, Indians are seeing increased spending on beauty and personal care, with per capita spending of about $134 in 2020 and expected to increase to about $165 by 2023, according to Statista.
Influenced by the epidemic, the digitization of Indian society has intensified dramatically, with the population embracing online shopping, online education, online healthcare and other Internet services, and e-commerce has grown exponentially.
According to a report by the India Brand Rights Foundation, India's total e-commerce market is expected to grow from $275.9 billion in 2017 to $1,433.4 billion by 2026, at a compound annual growth rate of 19%.
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