According to the Associated Chambers of Commerce and Industry of India (ASSOCHAM) the projected market size of the cosmetics industry is currently estimated at Rs.10,000 crores. It is expected to double to Rs.20,000 crores by 2014.

In India, the economic boom of the 1990s and victorious emergence of Indian women in international beauty pageantry events has witnessed a spiralling increase in cosmetic consumption in the country. The growing cosmetic sector has managed to reach even the rural markets. The Indian cosmetic industry had rapid growth growing at a CAGR of around 7.5% between 2006 and 2008. Enhanced purchasing power of the average Indian and greater fashion consciousness could be behind the continued growth of the Indian cosmetic industry from 2009 to 2012.

The Indian cosmetics market – defined as skin care, hair care, colour cosmetics, fragrances and oral care segments – stood at an estimated $2.5 billion in 2008 and is expected to grow at 7%. Today the success of Indian cosmetic players such as Himalaya, Dabur, Lotus, VLCC, Biotique, to name a few, forecasts the large potential growth of this sector.

In 2009, the cosmetics industry registered sales of INR 356.6 billion (US $ 7.1 billion) despite the global economic recession. The Indian cosmetic market, traditionally a stronghold of a few major Indian players like Lakme and Ponds, has seen a lot of foreign entrants to the market within the last decade. The size of the Indian cosmetics industry globally is US $274 billion, while that of the national industry is US $4.6 billion. Leading cosmetics brands in the country today are Lakmé, Revlon, Oriflame Cosmetics S.A, The L’Oréal Group, Chambor, Maybelline, Avon Products, Inc., Make-up Art Cosmetics or MAC Cosmetics, ColourBar Cosmetics and Street Wear.

Several cosmetics manufacturers in India who catered to the domestic market are slowly expanding into the international market due to the greater global demand for herb-based cosmetics from India.