India’s $20 Billion Beauty Market Growing Rapidly, Driven By Organic Products Demand

Like many other women entrepreneurs, she also had to break glass ceilings to reach where she is today. She had to face more challenges than one including societal expectations, gender biases, limited access to resources or networks, access to funding and last but not the least, balancing work with household chores. Barnali Raha, founder of Barnali’s Creations, Kolkata’s homegrown brand of wide range of organic beauty products, is burning midnight oils to ensure that her brand goes stronger by the day. Speaking to Bizz Buzz, Barnali Raha, Founder, Barnali’s Creations, decodes the industry she is in and her future plans

How big is the beauty/skincare products market in India? At what rate is it growing?

The beauty and skincare products market in India has seen substantial growth in recent years. As of 2023, the market is valued at approximately $20 billion (nearly Rs 1.5 lakh crore). The beauty and skin care product market in India is one of the fastest growing segments of the consumer goods industry because of the awareness of the people. One of the reasons being the widespread demand for organic and natural products influenced by the social media and beauty influencers, making it accessible to a wide range of people worldwide.

What would be the break-up of organised and unorganised sector in this category?

The beauty and skincare market in India is a mix of both the organised and unorganised sectors. Organised Sector-The organised sector refers to established brands, which include both domestic and international players and has a market share of approximately 30-35 per cent.

Unorganised Sector -The unorganised sector consists of local, small-scale manufacturers, street vendors, and regional brands. Its market share is around 65-70 per cent of the beauty industry.

While the unorganised sector still holds a large share, the organised sector is experiencing rapid growth due to increasing urban consumers, especially Gen Z, who have a drive towards branded products.

How big is the remedial and cosmetics sub-segments within the category?

The remedial (or dermatological and therapeutic) and cosmetics sub-segments are two important categories within the broader beauty and skincare market in India. Remedial Products: Accounts for nearly 20-25 per cent of the overall beauty and skincare market. Cosmetics: Accounts for around 25-30 per cent of the overall beauty and skincare market.

Where and how do you position your products--remedial Vs cosmetics? / premium/mid/mass segments?

Positioning beauty and skincare products requires a strategic approach that balances target customer demographics, product formulations, and price points.

Remedial: These products address specific skin concerns (e.g., acne, pigmentation, aging, dry skin) Whereas, Cosmetics products are often marketed with an emphasis on beauty enhancement, creativity, and instant results. Thus,my skincare range includes both of the above mentioned categories as it can be customised according to the needs of the customer.

I would predominantly place my products in the mid-range segment as the costs would vary according to the raw materials used to make a specific product.

How did your academic/formal training help you developing these products?

Academic and formal training can significantly contribute to the development of skincare products by providing foundational knowledge, including knowledge of Formulation Science, Understanding the Skin Biology which also includes Skin Sensitivity and Safety and also plays a critical role in developing innovative products suitable for all skin types.

How many products do you offer from your stable? How many more would you like to add over the next one/two years?

I offer a large variety of products including skincare, haircare and bodycare. I do not have a specific number in mind since my products are custom made and are specially tailored to meet the demands and concerns of my clients. In future as well, as number of clients and their concerns increases, accordingly I would be happy to add a more diverse skincare range.

At present your products are available online only, right? Do you have any plans to move from e-tailing to physical retailing?

As of now, I'm only available offline. Orders can be placed by contacting me via calls and whatsapp, which would be delivered to the client's doorstep. But in the near future, I do have a plan to step into the world of e- retailing.

When do you plan to become a pan India brand? What are the plans like in this regard?

As of now, my customer base mostly comprises clients within Kolkata but I also deliver orders Pan India via courier service and I plan to expand it further, going forward.

What are the USPs of your products?

I feel the USP of my products is that it is custom made according to the skin types of my customers and also targets the areas of concer as specified by them. Additionally, the use of authentic raw materials and natural products, without the inclusion of any harmful chemicals i what makes my products unique and safe for everyone.

How and where do you source your ingredients/raw materials from?

I generally order my raw materials online from sources located in Rajasthan, Gurgaon and Indore, which provide high quality materials at competitive prices.

How difficult/challenging has been your journey as a woman entrepreneur?

The journey of a woman entrepreneur can often be challenging due to several factors, such as societal expectations, gender biases, and limited access to resources or networks. Initially, access to funding was also one of the setbacks I had faced since the prices of authentic raw materials are also on a higher side. Also, balancing work with household chores at times can be challenging.

How do you propose to compete with your larger/branded competitors who are deep pockets?

Firstly, creating a distinct brand identity with a clear value proposition is a key factor. Also, focusing on what makes your product or service unique, whether it's quality, sustainability, transparency, cost efficiency all play a vital role. Secondly, Word-of-mouth from loyal customers can be another powerful tool to compete with big brands.

Any plans to tap overseas/neighbouring countries' markets, eventually?

As of now, it's hardly been a year since I've started my business. It is everyone's dream to make a mark in the international markets and hopefully as my business expands further I would also be able to fulfill my dreams in the long run.