FMCG SECTOR INDIA

Category in Focus: Personal Care

 Content
• FMCG
• Sector overview
• Growth drivers
• Leading companies in India
• Sector Highlights
• Advertising in FMCG
• Beauty and Personal Care
• Sector overview
• Growth drivers
• Purchase criteria
• Consumers of personal care
• Sector Highlights
FMCG
Sector Overview: Revenue over the years
The FMCG market in India is expected to increase at a CAGR of 14.9% to reach US$ 220 billion by 2025, from US$ 110 billion in 2020. The
Indian FMCG industry grew by 16% in CY21 a 9- year high, despite nationwide lockdowns, supported by consumption-led growth and value
expansion from higher product prices, particularly for staples.

FMCG Revenue (Bn. $)

250
220

200

150 4 .9%
G R1
110 CA
100 83.3
68.4
49 52.8
50

0
2016 2017 2018 2019 2020 2025
Epected

Src: IBEF FMCG India Snapshot

Growth Drivers

Src: IBEF FMCG India Snapshot

Leading FMCG companies in India
In 2022, the Hindustan Unilever company led the FMCG (fast-moving consumer goods) companies with a market capitalization of 65 billion
dollars in India. Nestlé India was second with a market capitalization of 23 billion dollars.

Leading Companies by Market Cap. (Bn. $)

80
65
60
40
23
20 13 11 11 9 6 6 6 3 3
0
Nestlé India

Dabur India

Britannia Industries Limited

Procter & Gamble Hygiene and

Marico

Hatsun Agro
Colgate-Palmoliv
Hindustan Unilever

Emami
Godrej Consumer Products

Varun Beverages
Healthcare Limited
Src: Statista Consumer Goods & FMCG data
Sector Highlights
The Government has allowed 100% Foreign Direct Investment (FDI) in food processing and single-brand retail and 51% in multi-brand retail.

The sector witnessed healthy FDI inflows of US$ 20.11 billion from April 2000-March 2022.

In June 2022, PepsiCo India announced its expansion plans for its largest greenfield foods manufacturing plant that produces the popular Lay’s
potato chips in Kosi Kalan, Mathura in Uttar Pradesh with an investment of Rs. 186 crore (US$ 23.84 million).

In April 2022, Dabur India announced plans to induct a fleet of 100 Electric Vehicles in its supply chain for last-mile product distribution.

In March 2022, Emami acquired Dermicool from Reckitt for Rs. 432 crore (US$ 55.37 million)

In February 2022, Dabur India, formed an exclusive partnership with energy provider Indian Oil, which will give Dabur's products direct access
to around 140 million Indane LPG consumer households across India.

In February 2022, Dabur India achieved its goal to collect, process, and recycle approximately 22,000MT of post-consumer plastic three
months early.

In February 2022, Marico Ltd has announced aims to achieve net-zero emissions by 2040 in its global operations.

Src: IBEF FMCG India Snapshot

Advertising in FMCG: TV and Digital
46% of ad spends on TV were contributed by FMCG. FMCG and E-commerce contributed 60% of total digital ad spends

Category Contribution to TV Advertising

Src: EY Media and Entertainment Report 2022

Advertising in FMCG: Digital Advertising Break-up

Digital Advertising Break-up

45%
41%
40%

35%
31%
30%

25%

20%
16%
15%

10% 9%

5% 3%
0%
Social Media Online Video Display Banners Paid Search Others

Src: Statista Digital Advertising Dataset

Advertising in FMCG: TV and Digital
FMCG ranks 3rd in category contribution to OOH Advertising

Category Contribution to OOH Advertising

Src: EY Media and Entertainment Report 2022

Beauty and Personal
Care
Sector Overview: Revenue over the years
The sector is poised to grow at a CAGR of 5.2%. The Beauty & Personal Care market is thriving and one of the fastest growing consumer markets,
driven by the Cosmetics and Skin Care segments. The main reason for this strong growth is the generational shift with young consumers entering
the market. At the same time, this change is reinforced by social media, internationality, and eCommerce, which have a lasting effect on buying
behavior when it comes to beauty products.

Revenue – Beauty and Personal Care

Src: Statista Beauty and Personal Care Dataset

Sector Overview: Revenue over the years
Purchases still mostly happen offline but online purchases are growing at a CAGR of 14%

Sales Channel Split

Src: Statista Beauty and Personal Care Dataset

Sector Overview: Leading Companies
Godrej Consumer Products had the highest revenue compared to its peers in the household and personal care products market across India in
March 2022. This was valued at nearly 1.57 billion dollars. Some of its personal care brands include Cinthol, Soft & Gentle. Among its home
range, Good Knight was most popular.

Leading Companies by Revenue. (Bn. $)

1.80
1.60 1.57
1.39
1.40
1.22
1.20
1.00
0.80
0.66
0.60 0.48
0.41
0.40 0.27
0.20
0.00
Godrej Consumer Dabur India Marico Colgate-Palmolive Procter and Gamble Emami Giellette India
Products Hygiene and Health
Care

Src: Statista Beauty and Personal Care Dataset

Growth Drivers

Prior to Covid-19, only small

brands were leveraging DTC The industry is now relying on
channels to reach customers. new-age technologies such as AI driven skin/ hair diagnostics,
Natural beauty and personal
However, supply chain Artificial Intelligence (AI), as well as AR based makeup, try-
care is ~40% of the total BPC
challenges precipitated by the Augmented Reality (AR), Virtual ons are delive1:1 tailored
market and growing at 1.5x the
pandemic forced many Reality (VR), etc., in order to products/ regimes for every
overall market.
established brands to start DTC meet the growing demands of shopper.
operations and reach consumers customers
directly.

Preference for Clean Bringing consumers Digital Diagnostics/

Rise of E-Commerce
Beauty closer to the brands E-Trials

Src: Trends shaping the future of the Indian beauty and personal care market – ET Retail
 20%
40%
60%
80%

0%
Quality

68%
Brand

Skin compatibility
59%
53%

Src: Global Consumer Survey - Statista

Organic / natural cosmetics
45%
Purchase Criteria

Reviews
39%

Ingredients (e.g. no silicone, no allergens)

33%

Low price
29%

Scent
29%
Quality and Brand remain the top purchase criteria for Indian Consumers

Promised effects
27%

Recommendations
27%

No use of environmentally harmful raw

26%

materials
Leading Companies by Revenue. (Bn. $)

Packaging
25%

Habit
21%

Animal welfare
20%

Resource-saving production
18%

Other
2%

Don't know
2%
Consumers of Personal Care: Gender Split

Product Usage by Gender

80%
72%
70% 69% 68%
65% 63%
60% 60% 61%
60% 55% 56%
51%
50%

40% Female
Male
30%
21%
20%

10% 5%
2%
0%
Decorative cosmetics Hair care and hair Oral and dental care Perfume, fragrances Personal hygiene Skin care (facial care, None of the above
(makeup, lipsticks, styling products (toothpaste, products (bath and hand care, body care,
nail polish, etc.) mouthwash, etc.) shower products, etc.)
deodorants, shaving
cream & gel, etc.)

Src: Global Consumer Survey - Statista

Consumers of Personal Care: Income Split

Product Usage by Income

High income (top 33% of households) Medium income (mid 33% of households) Low income (bottom 33% of households)
80% 74% 74% 72%
70% 72%
70% 67% 68% 66% 66%
60% 60%
60% 54% 55% 54%
49%
50%
40%
40%
32%
30% 28%

20%
10% 6%
1% 2%
0%
Decorative cosmetics Hair care and hair Oral and dental care Perfume, fragrances Personal hygiene Skin care (facial care, None of the above
(makeup, lipsticks, nail styling products (toothpaste, products (bath and hand care, body care,
polish, etc.) mouthwash, etc.) shower products, etc.)
deodorants, shaving
cream & gel, etc.)

Src: Global Consumer Survey - Statista

Sector Highlights
The organic skincare market is evolving at a rapid pace. According to Grand View Research’s report, the global organic skincare market stood
at $9.83 billion in 2021 and is projected to grow at a CAGR of 8.9% from 2022 to 2030.

Ecommerce sales volume grew 69.4% in FY22 compared to 44% in FY21, according to a report by Unicommerce in collaboration with Wazir
Advisors. Beauty and personal care category continued to drive this growth, with a 143% increase in volumes year-on-year.

As per a January global Accenture report, beauty and personal care is predicted to gain ground on e-commerce and capture over 40% of
global digital spend on average in key markets by 2025.

Beauty unicorn The Good Glamm Group, for instance, has been on an acquiring spree and fueling growth with smaller brands such as PopXO,
Baby Chakra, Mom’s Co, Sirona, and St Botanica, over the past two years.

Currently, the market share for Lakme is 10%, Maybelline is 7% while MyGlamm and SUGAR Cosmetics are at 4% each

Src: Online beauty retail space gets competitive; players see fast growth – Financial; Beauty & personal care continue to drive India's ecommerce growth – ET;
Factors why organic skincare products driving the current market - TOI
Finish.