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Personal Care

Personal Care
Personal care category in India is valued at Rs 54.6 billion. An average Indian spends 8% of his income on personal care products. Personal care mainly consists of Hair Care, Skin Care, Oral Care, Personal Wash (Soaps), Cosmetic and Toiletries, Feminine Hygiene. Till 2002-2003, Personal care products, except those in oral care category, were regarded as luxury items, and attracted a high excise duty of 120%. But the taxation reforms in India after 1991 have lowered the excise duty rates that make these products more affordable. It is divided into two segments:

The premium segment
The popular segment

The premium segment caters mainly to urban high class and upper middle class, and is more brand conscious and less price sensitive. The popular segment caters to mass segments in urban and rural markets; prices here are around 40% of the premium segment prices.

Growth
With the increase in rural income and improvement in distribution network (i.e. road development projects), the penetration levels are set to increase. Since the consumption level in urban areas is already high in most of the categories, the growth can come only from deeper penetration and higher consumption in rural areas. In the year 2005-06, the sector witnessed growth because of the increase in consumer demand from urban and rural areas. In addition to demand, prices also went up. Also, with the increase in disposable income, some consumers have moved up in the value chain. The growth for FMCG products in February 2006 was the highest in 5 years, on YoY (year over year) basis.

Prospects
The proportion of the consuming class to total households will touch 46% by FY07 from 17.4% in FY95, estimated by National Council for Applied Economic Research (NCAER). As the native companies are expanding in international market, the MNC subsidiaries are looking for greater leverage of the parent strengths. Also, big MNCs cannot afford to avoid India because of its potential market. The market size and the major players are:

Source:CII

Category	Market share (In billions)	Major Players
Skin Care	13	HLL
Personal Wash	46	HLL
Hair care	28	Marico
Oral care	23	Colgate

In India, the per capita consumption of almost all the products is amongst the lowest in the world. For example, the average consumption of toothpastes is around 320 gms in the world but in India it is 107 gms. In Thailand, Mexico, and USA it is 262 gms, 376 gms, and 518 gms respectively.

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Personal Care

Source:CII