Industry Overview | Beauty and Wellness - Class 6 PDF Download

 Page 1


200
500
1000
0
200
400
600
800
1000
1200
2002 2007 2012
Market Size  ( in$ Billion)
? The global beauty and wellness industry is growing at a CAGR of 15 percent annually over the last five years.
? The top five growth beauty and wellness markets are China, Brazil, the US, India and Indonesia.
? There is a shift towards the emerging markets and this is likely to continue with over 50 percent of the total beauty
sales by 2018 expected from developing countries.
? The rise in world’s leading health problems (obesity, hypertension and cardiovascular diseases) contribute to the
demand for wellness-related products and services.
? Therefore, the sector thrives on the increasing section of population that is now considering considering beauty and
wellness as a necessity for better physical and mental health.
? The list of other fast-growing subsectors include acupuncture, naturopathy, Ayurveda, meditation, biofeedback and
yoga.
Beauty and Salon
48%
Fitness
28%
Nutrition and 
Weight loss
20%
Rejuvenation
4%
Page 2


200
500
1000
0
200
400
600
800
1000
1200
2002 2007 2012
Market Size  ( in$ Billion)
? The global beauty and wellness industry is growing at a CAGR of 15 percent annually over the last five years.
? The top five growth beauty and wellness markets are China, Brazil, the US, India and Indonesia.
? There is a shift towards the emerging markets and this is likely to continue with over 50 percent of the total beauty
sales by 2018 expected from developing countries.
? The rise in world’s leading health problems (obesity, hypertension and cardiovascular diseases) contribute to the
demand for wellness-related products and services.
? Therefore, the sector thrives on the increasing section of population that is now considering considering beauty and
wellness as a necessity for better physical and mental health.
? The list of other fast-growing subsectors include acupuncture, naturopathy, Ayurveda, meditation, biofeedback and
yoga.
Beauty and Salon
48%
Fitness
28%
Nutrition and 
Weight loss
20%
Rejuvenation
4%
? The beauty and wellness industry in India is growing at a CAGR of 18.6 percent, driven by a burgeoning Indian
economy.
? The sector is thriving on the increasing section of affluent and middle-class population that has started considering
beauty and wellness as a necessity instead of a luxury, as perceived until sometime ago.
? Increased emphasis on a holistic wellbeing with people’s desire to look good and young are other motivators for
the industry.
? The rejuvenation segment is no longer perceived as a mere luxury service but it is now acknowledged as an
essential tool to de-stress and ensure complete wellbeing.
The next decade is expected to witness a transformation of India’s youth, comprising 53 percent of the total population, 
leading to opening up of the beauty market as everyone in this age group wants to be physically and mentally fit and look 
and feel good
11600
13920
16704
18400
22080
26494
17400
20880
25056
27600
33120
39744
4200
5124
6251
7000
8540
10419
1000
1300
1690
2197
2856
3713
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
2012 2013 2014 2015 2016 2017
In INR crores
Beauty and Wellness Counter Sale of Beauty Products
Fitness and Slimming Rejuvenation
Page 3


200
500
1000
0
200
400
600
800
1000
1200
2002 2007 2012
Market Size  ( in$ Billion)
? The global beauty and wellness industry is growing at a CAGR of 15 percent annually over the last five years.
? The top five growth beauty and wellness markets are China, Brazil, the US, India and Indonesia.
? There is a shift towards the emerging markets and this is likely to continue with over 50 percent of the total beauty
sales by 2018 expected from developing countries.
? The rise in world’s leading health problems (obesity, hypertension and cardiovascular diseases) contribute to the
demand for wellness-related products and services.
? Therefore, the sector thrives on the increasing section of population that is now considering considering beauty and
wellness as a necessity for better physical and mental health.
? The list of other fast-growing subsectors include acupuncture, naturopathy, Ayurveda, meditation, biofeedback and
yoga.
Beauty and Salon
48%
Fitness
28%
Nutrition and 
Weight loss
20%
Rejuvenation
4%
? The beauty and wellness industry in India is growing at a CAGR of 18.6 percent, driven by a burgeoning Indian
economy.
? The sector is thriving on the increasing section of affluent and middle-class population that has started considering
beauty and wellness as a necessity instead of a luxury, as perceived until sometime ago.
? Increased emphasis on a holistic wellbeing with people’s desire to look good and young are other motivators for
the industry.
? The rejuvenation segment is no longer perceived as a mere luxury service but it is now acknowledged as an
essential tool to de-stress and ensure complete wellbeing.
The next decade is expected to witness a transformation of India’s youth, comprising 53 percent of the total population, 
leading to opening up of the beauty market as everyone in this age group wants to be physically and mentally fit and look 
and feel good
11600
13920
16704
18400
22080
26494
17400
20880
25056
27600
33120
39744
4200
5124
6251
7000
8540
10419
1000
1300
1690
2197
2856
3713
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
2012 2013 2014 2015 2016 2017
In INR crores
Beauty and Wellness Counter Sale of Beauty Products
Fitness and Slimming Rejuvenation
According to CSO, growth in consumption expenditure dropped to 4 percent in 
FY2013 from 8 percent in FY2012, but expenditure on wellness products and 
services remains steady, riding on increasing share of discretionary spending.
Customers are willing to pay a premium for a beauty and wellness ‘experience’. 
Spending on beauty and wellness is no longer considered a luxury. Customers 
are more aware of holistic approaches to wellbeing and setting aside quality 
time towards these activities. There is an increased preference for organic 
options.
Beauty and wellness services are expanding among both men and women with 
men becoming increasingly conscious of their looks and wellbeing. Unisex 
beauty and wellness centres are increasingly finding acceptance among young, 
upwardly mobile customers. Several leading brands in the organized segment 
offer unisex services. 
Rising income, increasing awareness among consumers in tier 2 and 3 cities and 
low rental/manpower costs are some drivers for expansion into hitherto 
untapped regions. For a number of organized beauty and wellness players, over 
50 percent of their new store additions during FY 2013 have been beyond tier 2 
and 3 cities.
There is an increased presence of foreign brands in the services as well as 
product segment. 
Increased penetration of organized retail augurs well for the sales of foreign 
brands in India.
The advent of foreign brands is giving rise to niche skills and increased 
efficiency of operations and customer orientation.
Page 4


200
500
1000
0
200
400
600
800
1000
1200
2002 2007 2012
Market Size  ( in$ Billion)
? The global beauty and wellness industry is growing at a CAGR of 15 percent annually over the last five years.
? The top five growth beauty and wellness markets are China, Brazil, the US, India and Indonesia.
? There is a shift towards the emerging markets and this is likely to continue with over 50 percent of the total beauty
sales by 2018 expected from developing countries.
? The rise in world’s leading health problems (obesity, hypertension and cardiovascular diseases) contribute to the
demand for wellness-related products and services.
? Therefore, the sector thrives on the increasing section of population that is now considering considering beauty and
wellness as a necessity for better physical and mental health.
? The list of other fast-growing subsectors include acupuncture, naturopathy, Ayurveda, meditation, biofeedback and
yoga.
Beauty and Salon
48%
Fitness
28%
Nutrition and 
Weight loss
20%
Rejuvenation
4%
? The beauty and wellness industry in India is growing at a CAGR of 18.6 percent, driven by a burgeoning Indian
economy.
? The sector is thriving on the increasing section of affluent and middle-class population that has started considering
beauty and wellness as a necessity instead of a luxury, as perceived until sometime ago.
? Increased emphasis on a holistic wellbeing with people’s desire to look good and young are other motivators for
the industry.
? The rejuvenation segment is no longer perceived as a mere luxury service but it is now acknowledged as an
essential tool to de-stress and ensure complete wellbeing.
The next decade is expected to witness a transformation of India’s youth, comprising 53 percent of the total population, 
leading to opening up of the beauty market as everyone in this age group wants to be physically and mentally fit and look 
and feel good
11600
13920
16704
18400
22080
26494
17400
20880
25056
27600
33120
39744
4200
5124
6251
7000
8540
10419
1000
1300
1690
2197
2856
3713
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
2012 2013 2014 2015 2016 2017
In INR crores
Beauty and Wellness Counter Sale of Beauty Products
Fitness and Slimming Rejuvenation
According to CSO, growth in consumption expenditure dropped to 4 percent in 
FY2013 from 8 percent in FY2012, but expenditure on wellness products and 
services remains steady, riding on increasing share of discretionary spending.
Customers are willing to pay a premium for a beauty and wellness ‘experience’. 
Spending on beauty and wellness is no longer considered a luxury. Customers 
are more aware of holistic approaches to wellbeing and setting aside quality 
time towards these activities. There is an increased preference for organic 
options.
Beauty and wellness services are expanding among both men and women with 
men becoming increasingly conscious of their looks and wellbeing. Unisex 
beauty and wellness centres are increasingly finding acceptance among young, 
upwardly mobile customers. Several leading brands in the organized segment 
offer unisex services. 
Rising income, increasing awareness among consumers in tier 2 and 3 cities and 
low rental/manpower costs are some drivers for expansion into hitherto 
untapped regions. For a number of organized beauty and wellness players, over 
50 percent of their new store additions during FY 2013 have been beyond tier 2 
and 3 cities.
There is an increased presence of foreign brands in the services as well as 
product segment. 
Increased penetration of organized retail augurs well for the sales of foreign 
brands in India.
The advent of foreign brands is giving rise to niche skills and increased 
efficiency of operations and customer orientation.
? Increase in demand for personal services due to change in lifestyle among urban middle class individuals
? Increased number of national/international players and present in tier 1 and 2 cities
? India is increasingly adopting western culture and cosmopolitanism of the market would drive demand
across the country
? Availability of various kind of services across price points
? Large portfolio of services
? Availability of branded services
? Highly unorganized sector (more than than 70 percent) dominated by small players with limited training
and lack of knowledge of modern techniques
? Infrastructure availability not up to global standards
? Lack of penetration of vocational education offered to the workforce
? Predominant focus of these services in urban  areas
? Highly skilled workforce is still unavailable due to the lack of training support
? Lack of standardization among training programmes creates gaps in expectation and performance
? Limited organization of labour despite the growth of the organized sector
? Increasing demand among middle income groups for beauty and wellness services
? Increasing set of advanced technologies associated with beauty and wellness, such as Botox, available
in India
? Demographic dividend augurs well for this sector with growing youth population
? Increasing acceptance of services, such as rejuvenation and slimming, among middle income segments
? Increasing demand for beauty and wellness for men
? Destination spa and resort spas under the rejuvenation segment are likely to become synonymous with
the luxury segment in future
? India has the highest acceptance and demand for beauty and wellness services
? Faster growth of organized players leading to standardization of services
? Advent of international players entrenched in India
? Implementation and acceptance of quality accreditation
? Increasing home solutions and DIY kits
? Increasing number of corporate and home gyms
? Proliferation of unorganized players due to low-entry barriers
? Delay in the adoption of quality standards by small players
? Getting manpower as the sector becomes more organized
? Advent of international players entrenched in India